The Tamil Nadu Electricity Consumers’ Association (TECA) has said the proposed revision of electricity tariff in the State is unviable for electricity consumers.
S. Ashok, president of the Association, has said that the Tamil Nadu Generation and Distribution Corporation (Tangedco) has requested for revision of tariff for financial year 2022-23 and also for the next four years. The tariff revision for the financial years 2023-24, 2024-25, 2025-26, and 2026-27 has been proposed at 6% increase (or) based on Consumer Price Index (CPI), whichever is lower. There are several CPIs and there is no clarity as to which one will be taken for consideration. A CPI is based on a basket of goods and services, which need not be an input goods or services for Tangedco. An electricity consumer may not be able to project his cost of power with a volatile CPI. “Such proposals are arbitrary and not a reliable method which create uncertainty in costs to the consumers,” he said. The proposal to increase cost at the rate of 6% year-on-year is also too high for any category of consumer and will make Tamil Nadu a less preferred State for investments.
The tariff proposal (s) given by Tangedco is when the Tamil Nadu Electricity Regulatory Commission has no legal member on its board. A decision on tariff hike should be taken only after appointment of a legal member in the Commission. The TNERC should also take decisions after verifying cost audit report of Tangedco, which will reveal cost of power produced by Tangedco at its thermal, hydel, gas power plants and wind farms. This report should be circulated to all stake holders by hosting it on the Tangedco website.
The tariff revision proposed by Tangedco has come when the power consumers are just out of pandemic lockdowns and the pandemic is still on. Global businesses have started entering recession phases. Indian businesses are also affected by it. So, the multi-fold tariff hike is a severe setback for the industries and to the electricity consumers in Tamil Nadu. It will escalate costs for all goods and services, Mr. Ashok said.
