The Tamil Nadu Electricity Regulatory Commission (TNERC) has approved the payment of an additional subsidy by the State government to the Tamil Nadu Generation and Distribution Corporation (Tangedco), in the wake of a 2.18% power tariff hike which came into effect from July 1, 2023.
The State government has proposed to exempt domestic consumers from the tariff increase, and compensate Tangedco for the revenue loss, the TNERC said, in its order dated July 20, 2023.
The State government will also compensate Tangedco on the 2.18% increase in respect of handloom and powerloom units, places of public worship, agricultural connections, huts, LT Industries and HT Lift Irrigation categories of consumers.
The TNERC has approved an additional subsidy of ₹268.04 crore for the period from July 1, 2023 to March 31, 2024, in respect of domestic consumers. Overall, the regulator approved an additional subsidy of ₹394.50 crore.
After adjusting the excess subsidy during 2022-23, the net amount payable is ₹226.58 crore, it said.
TNERC said it has made an amendment in the procedure for the payment of the subsidy by the State government, in the regulations, and has advised the State government to release the additional subsidy amount proportionately, before the commencement of every quarter, for all categories of consumer.
