Responding to the demands from the public, especially the poor and the middle class, Chief Minister Jayalalithaa on Tuesday announced a partial rollback of the power tariff hike. It is a move that is expected to grant a big relief to middle class households from the steep hike in their bi-monthly electricity bills.
Click here for domestic power tariff reduction (pdf)
Reading out a suo motu statement in the Assembly, even as the DMK, DMDK and CPI(M) staged a walk-out after being refused permission to raise the tariff hike issue, Ms. Jayalalithaa said the government had no authority to reduce the tariff fixed by the Tamil Nadu Energy Regulatory Commission (TNERC), but had decided to subsidise the power bill further, benefitting 1.50 crore domestic consumers.
Announcing the revision, she said the tariff for domestic consumers with consumption of up to 100 units in two months would be reduced by 10 paise per unit and tariff for those consuming up to 200 units would be reduced by 30 paise per unit.
For families consuming 201 to 500 units, the tariff will be reduced by one rupee per unit for the first 200 units and 50 paise per unit for the remaining 300 units. Even if there was no tariff reduction for those with a consumption of over 500 units, the tariff for this category was less than the production cost per unit, Ms. Jayalalithaa said.
The government will provide Rs 740 crore as additional subsidy to the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) for the purpose, thereby pushing up the total subsidy to about Rs 4,294 crore. She said TANGEDCO was already in a ‘debt trap situation', as it was borrowing funds to fulfil its repayment and interest payment obligations. Its accumulated losses amounted to Rs. 50,000 crore, its borrowings from financial institutions exceeded Rs. 45,000 crore and it owed Rs. 11,000 crore in arrears to private producers and contractors.
She emphasised that the power tariff in the State was the lowest for domestic connections with a consumption of up to 200 units when compared to Karnataka, Andhra Pradesh, Kerala, West Bengal, Maharashtra, Gujarat and Uttar Pradesh. The tariff reduction was effected as the government received petitions from the public that it would be an additional burden on the poor and the middle class families, she said.
Already, the government was providing subsidy of Rs 1.50 per unit for domestic connections with consumption of up to 100 units; Re. 1 per unit for those with consumption of up to 200 units and 50 paise per unit for three hundred units for those with consumption of up to 500 units. Besides, the government was fully subsidising power for huts and agriculture, Ms. Jayalalithaa said.
Well the people have to accept that they can't continue paying tariffs from the stone age. The
hike is a justified move. Other states rates are so high.
MR Ganesh Ram
True,in Bangalore, you don't need A/C even during summer but then what about heavy consumption on water heaters in most of the year? And the fact whether you produce electricity in Karnataka or Tamilnadu using thermal power units, the cost of production is the same.
Hope you will consider these facts too.Also you must consider the fact that the Khazhagams have destroyed the functional efficiency of government departments in the last 45 years of their rule, brought it to the level of the mediocre standards of karnataka and Andrapradesh.Please note part of AP was ruled by the nizam and karnataka was divided administratively 4 or 5 parts before independence which never gave these states a proper system of adminstration like TN.Indians after independence systematically reduced efficiency of the govt. departments and in the case of khazhagams they brought down the most efficient state to the level of mediocrity.
Mr.Shiv,
You may not require a Air conditioner or a fan even in the summer nights at banaglore. the case is vice versa in TN. Billing cycle in Karnataka is monthly and in TN it is bi-monthly.
Hope you will appriciate these facts.
The Govt. must submit review report of previous budget one day before submitting annual general budget. The Schemes announced, amount spent in each item as approved in the previous budget, non-execution of schemes & unspent amount thereon together with specific reason for non-execution of schemes etc.have to be reported in the budget speech itself. The Minister (s) & Officials responsible for the lapses must be made accountable. Once this exercise is done scrupulously, the development of our State/Country will be on fast developing track.
Could somebody enlighten us about whether TNEB is supposed to pay
interest on the deposits we have paid for obtaining meters and the
additional deposits we pay when we use more units. Until a few years ago
before computerization they used to note down additional deposits only
on the meter reading card. Many consumers do not have records. After
computerization, they give separate bills for additional deposits. When
enquired, TNEB officials say they only have details of deposits made
after computerization.
Dear Sir,
Kindly note that not only TNEB but all distribution companies under all State Governments are making losses continuously and the total loss is approx. 2 lakh crores according to media reports. Moreover, it is reported that during Jan 2011, the Union Power Ministry moved a request to Applellate Tribunal of all State Electricity Regulatory Commission to make it compulsory for all the State Regulatory Commissions to increase the price on their own every year without evenconsulting the State Governments. Is it so? If that is the case, why we single out only TN Government and Kerala Government for powercut and rise in power tariff? The power transmission congestion can not be improved before January 2014. Till that time, it is afraid, this situation may continue.
Electricity,water&sewage,property tax in chennai/Tamilnadu has been kept artificially low due to the populist policies of one or the other khazhagams for many years.I felt the price increase in electricity is still modest before the roll back.Except for few, many who have responded to this article purvey the same logic that being essential services, it should be kept low.But then the cost of producing these essentials are much higher.What we need to do is separate in our minds the crookedness/pilferages/over staffing/defective meters out of the discussion.This needs to be addressed separately.For the information of many, I mention here the current power tariff of Karnataka - 0-30units @Rs2.20 per unit,31-100 @Rs3.40 per unit,101-200 @Rs4.50 per unit and >200 @Rs5.50per unit. Now match this with what the current government in TN has done.
considering the financial position of TNEB it is a fair move. Had the
previous govt acted in time to check the financial burden of always
ailing TNEB the rise of tariff would have been minimal.
For an average middle class family of four members, it is very difficult to contain electricity consumption below 250 units per month,
Gadgets like geyser, A/c, refrigerator, microwave oven, mixie,grinder apart from fans & lights and music systems have become essential items and are no longer luxuries. Added to the list is overhead pump for individul houses will be a heavy burden. The chief minister should consider extending subsidy up to 500 units per month (1000units for two months) and help the middle and upper middle class people
it's nothing but little gimmick,. in fact its all from price hike to shifting of Anna centenary library are gifts to the people of Tamil Nadu for voting her, in fact these stupid people need this and about loss to govt or debt condition etc, i would like to ask one simple question from when the government department like MTC, Electricity board and aavin etc have become a profit making ventures? can these institutions in a democracy talk about loss etc? isn't it these institutions are to serve common people? OK, so they make loss so amma is making them profitable. then why doesn't she close down all government colleges , schools etc because they don't make any profit unlike self financing colleges and schools.In a democracy which is developing how can a government take such a harsh step which affect common people? no one is asking for subsidy to travel in airplane or to stay in five star hotel or to buy liquor in tasmac bar. people are asking for a little care and prudence from the gov
How long we expect government(s) to bleed for our selfishness. We
should be ready to pay for what we use. The situations like this
should make us think otherwise, like how we can reduce our
consumption, investing renewable energies, etc., We talk more about
common man & middle income families getting affected by these price
rices. When a common man can do power theft, spend for mobiles, wish
to use refrigerator, washing machines, mixie, grinder, air
conditioner, air coolers. When they have money to buy all these why
aren't they ready to pay for the power? And why the common man should
user more than 500 units a month? Why not pay for what is used. We
should get rid of the greediness, selfishness, shamefulness. The
government should also bring out policy changes. Promote eco friendly
renewable energy. The educational institutions should come forward
with innovative ideas. We have talent let us make use of it.
This is a backward step, what we need is more power generation and if it takes the Generation and Distribution company to raise the tariff to re-invest in Power Generation, we should welcome that. People should stop begging for subsidies from the government. If people crossing the 500 units are unhappy, so will be the persons crossing the 600 units if the government increases the limit. Inflation adjustments to tariffs are necessary and makes the system sustainable. Revenue generated has to be re-inveted for better infrastructure. Power generation and distribution cannot continue to be a loss making affair forever.
The recent reduction in EB tariff is quite welcome. But those who use a little more than 500 units are not informed about the tariff. If the present tariff continues then it will be a huge burden for even a middle class family. I strongly recommend to follow the above tariffs on monthly basis. For most of the services we pay in a monthly bill basis, then why should EB alone exempted. If the above tariff is followed in a monthly basis it will be good.
Govt. should stop giving free power. All power spent should be metered. Power theft should be strictly avoided and monitored. There must be a heavy penalty up to 10% for illegal users.
If the Government extend its subsidizing limit to 600 units from the present limit of 500 units, most of the middle income family will be benefited.
If the Government extend its subsidizing limit to 600 units from the present limit of 500 units, most of the middle income family will be benefited.
TNEB requires fund for development and payment of arrears / debts.
Where the money will come from? Only from the consumers.No state can
on a continuous basis subsidise the power or anything. so increase in
a scalaeble manner must be accepted.
Now,the next phase is- how to increase the efficiency of production
of power and didtribution. How about checking the power thefts. This
needs a major monitornig. I am sure the authorities are doing.
Before coming to power; during the election campaign; at party's
meeting, Ms Jayalalitha raised the price rice as the major concern.
I remember her words " TO COOK RICE RUPEE ONE; BUT TO COOK A CURRY
RUPEES HUNDRED”.
Now she is justifying all the price hike; by passing the
responsibility to the previous regime or the centre.
The government may think of increasing tariff further unnessary consumption like ad boards lighting, A/c malls etc., This will augment the income of the Government.The Governments in Tamil Nadu both DMK and AIADMK have not hiked the price in the past for want of votes. Now no one can do anything except to revise the tariff. One should not forget that the Government is heavily subsidising the EB to reduce the cost.However we should appreciate the Government for vetting the tariff at this juncture.
Jayalalitha must realise that people gave her a chance because they thought that she may be able to give a better administration than the previous DMK government. The citizens of Tamilnadu did not elect her to hear her say that all the ills are due to DMK. Its time she starts proving to the elected people that she is capable of delivering what is good for the state.
In Kerala they have introduced a roof top solar power generator to be stored in batteries and after own use the excess after own use to be withdrawn by Electricity Board.The solar generator is subsidized. Why can't we in TN do same?
As per revised tariff rate if one consume exactly 500 units for two months period then the bill amount will be (200X 2)+(300X 3)+20= Rs.1320/-. Suppose if one consume 501 units for two months period then the bill amount will be ( 200X 2)+(300X 4)+(1 X 5.75)+30= Rs.1635.75/- that means for a single unit increasing we have to pay Rs.315.75. Hence please careful.
Atleast the increased tariff will end up as revenue to the government unlike cable tv subscription that went into hands of Ex-CMs family business. I don't accept that the Govt has reduced tariff under some pressure. Rather, they would have anticipated that there will be dissent from Public and had increased it very steep and again reducing from the high amount to satisfy. But we have to accept how long can a govt department like electricity board run on subsidy and hence there is no way other than raising the tariff. Let us hope the present govt does not think about electoral gains and hike if really required at regular intervals so that people do not feel the pinch all at once.
The Govt should realise that the ordinary people and the middle classes are suffering very much due to sudden increase of cost of living.Govt should curtailed its commitments,so that the middle classes mostly working classes are not affected.In the midst of ever raising cost of living how can you expect them to be orderly,disciplined,principled and cultured and remain honest and corrupt free.The govt should not help promote demoralisation due to increase sudden cost of living.Govt. should stop diversion of funds for new ventures.Help keep the life going without extra commitments.
Tariff increase is a welcome move. Because of the cheapest DMK Policies, Tamilnadu Electricity Board is suffering. Further please remove free power supply. I am staying in Surat - Gujarat for the past 8 and 1/2 Years.Power cut is very rare and here power subsidy is almost zero. Free power is like cancer and also make the people very lazy to get the benefit without doing any work.
Then what is the point in giving Mixer, Grinders, Table Fan and other appliances at free of cost and increasing the electricity tariff. This is as good as hiking cable tv subscription and distributing free color televisions in the past regime. THIS IS UNFAIR BY ALL MEANS
Bills to be cleared every month instead of bi-monthly with the same subsidy, as it is practised in the other states like karnataka.
The Union Railway Minister exempted rail fare hike for 3-AC passengers, as middle classes use this facility. On the same analogy, the Chief Minister should give relief to the middle classes up to 1,000 units of energy for two months by giving this at a subsidy, as middle classes use fans, geysers, mixies, wet grinders, refrigerators, electric hot plates, electric iron and pumpsets for pumping water.
What about those who are cosuming more than 500 units for two months period.If existing announced tariff will continue it will be unbearable one.
No body looks at the functioning of electricity generation and distribution companies -role of each employee,purchase procedure and the loss of around 20 % -even press talks of subsidy -get in to the cost of purchase/generation and bring in efficiency -electricity corporations will be profitable -steep hike adds to misery of middle class people who have voted for madam thinking that she can only bring in accountability and efficiency.
Hope she does some concession for above 500 units by passing on the improvement in managing the octopus.
What about Middle Class & Large Family consuming more than 500units
for Two months?
There is no one, in the country to speak for Middle Class family,
those earning modest trying to meet their both ends. …. Is it sin to
be a Middle Class….
It’s the Country Leaders wish you have to be Below Poverty Line or to
be rich…
By being Middle you are not looking for concession, you’re paying all
your dues as Tax so full Burden of Mismanaged Publics sector will be
on your shoulder….
At current modern world, any big family with more than 4 -5 family
member they have to consume more than 500units bimonthly basis…
Govt stands encourage split of large family, if you consume 800units
as single family I will pressurizes with lot of burden to split in two
or three family.
If the same as consumed 300-400 as two or three family…. You will
enjoy all the benefit with all subsidy … With two or three ration card
you can will live very good life excess of subsidy product from ration
stores … with numerous
As a matter of fact, the TNEB was at a debt of 40+k crores towards the end of DMK rule. Once the DMK regime was voted out of power, the central government through the RBI instructed banks not to provide any further loans to the board. In my opinion i think it is fair to criticise both the central govt and the previous govt for the lapses in the functioning of the Electricity board
Common man can spend money on flashy cell phones, multiplexes..etc and when it comes to bus, milk and electricity, they would expect it to be given free of cost.
This is utter rubbish. People are paying taxes not for others to have a free lunch but to improve on the facilities offered. If somebody has the luxury to buy to fridge, mixie, fan, grinder, AC, washing machine..etc by spending close to 1 lakh, they should not suffer spending 1000 or 2000 on electricity.
we can spend 10 lakh to buy a premier car but will yell when there is 2 or 3 rupees hike in petrol prices.
If you cannot afford, why do you need the luxury. Go in city bus, stick to electric fan and washing clothes yourself.
It is common now for the political parties to make an exorbitant hike at the begining after hue and cry from the people, they reduce the hike marginally and announce it as if they are giving a bonanza or free gift!!
High consumers should be asked to pay at the same cost of buying power from a private power producer. There are some in Chennai and other big cities who use more than 1 airconditioner continuouusly. These consumers should not be subsidised. TNGEDCO should charge them at market rates and buy power from private producers to supply them.
Blaming either central Govt. or earlier Govt. for her lapse and administrative incapability is not acceptable and reasonable. Already price hike is there in bus, milk and now heavy in electricity tariff. Common people cannot survivie with all these hikes.
subsidiary for more than 500 units users must have been given.. its unfair that those who use little more than 500 have to suffer a lot.. appliances like fridge, mixie, fan, grinder, washing machine are need of the hour.
It is a welcome move. Similarly CM should increse the subsidising limit to atleast 750 units from the present limit of 500 as it is for two-month period. It would be very difficult to limit the consumption to 250 units per month especially for individual houses which have borewells. Due to recent changes in the tarif the most affected consumers would be those using 501 to 750 units for the two-month period as the increase works out to more than 37%.
Please Email the Editor