Chennai: Tamil Nadu on Thursday announced a steep 15 percent hike in power tariff but consumers will not have to bear the entire burden as the government has decided to provide subsidy to offset the increase.
"The revised power tariff which will come into effect from tomorrow will be 15 per cent across all segments of consumers," a press release from Tamil Nadu Energy Regulatory Commission said.
Later, Chief Minister O Panneerselvam announced providing subsidy to TANGEDCO to offset the tariff revision to avoid passing on the entire burden to the consumers.
Covering domestic consumers, huts, powerlooms and handlooms besides farmers, the subsidy purse will stand at Rs 6,295.32 crore annually, he said in a statement.
TNERC said it has decided on the hike after considering all suggestions from stakeholders of various categories of consumers in public hearings held state-wide in October.
Accordingly, residential units paying Rs 2.60 for a unit for usage of up to 0-100 will now have to pay Rs 3 a unit.
For consumption of 51 to 100 units per month or 101 to 200 units for two months, the rate has been revised to Rs 3.25 a unit from the existing Rs 2.80, it said.
Those consuming 0-200 units will now have to pay Rs 3.50 a unit, up from the existing Rs 3, while users in the 201-500 unit band will have to pay Rs 4.50 against Rs 4 per unit.
For users of 501 units and above, the price has been revised to Rs 6.60 a unit from Rs 5.75 a unit, the release said.
For huts, TNERC has revised the price to Rs 4.95 a unit from Rs 4.30 per unit. Government has also hiked the subsidy given to huts to Rs 290 from the existing Rs 250.
The cost of a unit for government and government-aided educational institutions has been increased to Rs 6.35 a unit from the existing Rs 4.50 a unit.
For private educational institutions the price has been revised to Rs 6.35 a unit from the existing Rs 5.50 a unit.
For business enterprises, the cost has been increased to Rs 8 per unit as against Rs 7, the release said.