Citing practical difficulties, the Tamil Nadu Generation and Distribution Corporation (Tangedco) has refused a Smart City proposal to credit power subsidy directly into bank accounts of consumers. As part of the Smart City project, there was a proposal to credit power subsidy into the individual savings bank accounts of consumers, similar to cooking gas subsidy.
While consumers have to pay the LPG cylinder cost in full, Tangedco accounts for the subsidy in the power bills and the consumers pays minus the subsidy amount.
The Smart City proposal was to be taken up at the Kodambakkam zone.
At a recent meeting with the officials of the Smart City project, Tangedco’s officials told them that the proposal could not be implemented due to the difficulties involved.
Power subsidy is provided by Tangedco to domestic consumers in two different forms — first 100 units free and partial reduction of tariff rate per unit for consumers in the 101 to 500 units bracket.
The subsidy for those using below 200 units (101 to 200 units) is ₹ 1.75 per unit. Those in the above 200 and below 500 bracket the subsidy is given in slab rates of ₹1.50 per unit for 101 to 200 units and ₹1.60 per unit above 201 to 500 units.
No partial reduction of tariff subsidy is given to those consuming more than 500 units.
Practical problems
Explaining the practical difficulties, a senior Tangedco official said the first problem was in identifying the beneficiary. It could be a rented house and the owner would be benefited as the electricity connection would be in his name.
