Power tariff may increase by 3.16% from July

Chennai: Power tariff in the state is likely to increase by 3.16% for all categories of electricity consumers, including households, in line with the recently released consumer price index (CPI).
It will be effective from July 1.
This will be the fourth consecutive annual revision of electricity tariffs in the state. The
Tamil Nadu Electricity Regulatory Commission
(TNERC) has been revising suo motu the power tariffs every year since 2022 based on the latest consumer price index as part of the multi-year tariff formula for five years, as decided in 2022.
Domestic consumers who were paying 1,000 as power bills on average last year will pay 31.6 extra. Similarly, power consumption charges and fixed charges for common supply services in apartments and multi-tenement buildings will also increase by 3.16%.
The tariff revision will also apply to high-tension consumers such as industries and other low-tension consumers. Even though the tariff revision has been capped at 6%, the tariff was increased by 2.18% in 2023 and 4.83% in 2024.
In 2023, the entire hike for domestic and a few other categories was absorbed by the state govt, and the power utility was compensated by way of subsidy. However, in 2024, the state govt proposed to release an additional subsidy in proportion to the 4.83% hike to domestic consumers, by which the domestic consumers were partially relieved of the burden of the hike last year.
Sources in both TNERC and TNPDCL played down the annual tariff revision proposal, saying there is still time to decide on the tariff revision. The state govt is expected to formally intimate the discom as well as the regulatory body of its plans to either fully or partially subsidise the hike in the coming weeks.
It may be noted that the electricity tariffs were revised last year on July 11, effective from July 1, after the Vikravandi bypoll for the legislative assembly seat was completed.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

The Hindu

14 hours ago

• The Hindu

Industries demand reduction in power tariff as consumer price index registers a decline

With the Consumer Price Index (CPI) for April 2025 declining compared with last April, industries in Coimbatore are demanding that the Tamil Nadu Power Distribution Corporation (TNPDCL) retain the electricity tariff for industries at the same level or reduce it. Based on the multi-year tariff revision introduced in 2022, industries will see 6% increase in power tariff from July 1. The Tamil Nadu Electricity Regulatory Commission (TNERC) order says that the control period under the multi-year tariff frame work shall be five years. The year preceding the first year of the control period shall be the base year where the Commission desires to fix multi year tariff. A formula based on Consumers' Price lndex (wholesale Price lndex (or) a quantum (Percentage / value) required to meet the Aggregate Revenue Requirement of the licensee shall be prescribed. Industry sources here said the All India Consumer Price Index for April 2025 is 3.48 % as against 4.83 % in April 2024. Since there is a decline in the CPI, the Commission and the TNPDCL should not implement the annual 6 % annual hike in tariff this year. They urged the TNERC also to issue orders to either retain the tariff or reduce it. Electricity consultants said if the CPI has reduced in April this year, the TNPDCL and the TNERC should not hike the tariff from July 1.

Hans India

2 days ago

• Hans India

Inflation eases further in May for India's farm and rural workers

New Delhi: The year-on-year inflation rates based on the all-India consumer price index for agricultural labourers (CPI-AL) and rural labourers (CPI-RL) for May this year declined to 2.84 per cent and 2.97 per cent, respectively, compared to 7 per cent and 7.02 per cent in the same month of the previous year, bringing respite to poor households, figures released by the Ministry of Labour & Employment on Friday showed. The inflation rate has also come down on a month-to-month basis, as corresponding figures for April 2025 stood at 3.48 per cent for CPI-AL and 3.53 per cent for CPI-RL. The inflation rate for agricultural and rural labourers has been steadily declining over the last seven months. This comes as a welcome relief for these vulnerable segments that are hit hardest by spiralling prices. It also leaves more money in their hands to buy a wider range of goods, leading to a better lifestyle. The decline in inflation for farm and rural workers has also come in the backdrop of a fall in the country's overall inflation based on the Consumer Price Index (CPI) to 2.82 per cent in May this year compared to the same month of the previous year. This is the lowest level of retail inflation since February 2019, according to a statement issued by the Ministry of Statistics on Thursday. Food Inflation declined to 0.99 per cent during May, which is the lowest since October 2021. This is the seventh month in a row that food inflation has registered a decline as the agricultural output has been on the rise. The significant decline in inflation during the month is mainly attributed to the decline in inflation of pulses, vegetables, fruits, cereals, household goods & services, sugar, and eggs. Inflation also declined due to a moderation in fuel prices, with international prices of crude oil coming down during the month. The RBI has revised its inflation outlook for 2025-26 downwards from the earlier forecast of 4 per cent to 3.7 per cent, Reserve Bank Governor Sanjay Malhotra said during the monetary policy review meeting earlier this month. CPI inflation for the financial year 2025-26 is now projected at 3.7 per cent, with Q1 at 2.9 per cent, Q2 at 3.4 per cent, Q3 at 3.9 per cent, and Q4 at 4.4 per cent. The easing of inflation has enabled the RBI to go in for an interest rate cut and a reduction in the cash reserve ratio (CRR)for banks to spur growth in the economy.

Business Standard

2 days ago

• Business Standard

Retail inflation for farm, rural workers eases to below 3% in May

The All-India Consumer Price Index for Agricultural Labourers (CPI-AL) and Rural Labourers (CPI-RL) decreased by 2 points and 1 point in May 2025 to stand at 1305 and 1319 points, respectively Press Trust of India New Delhi Retail inflation for farm and rural workers eased to 2.84 per cent and 2.97 per cent in May from 3.48 per cent and 3.53 per cent, respectively, in April this year, according to data released by the Labour Ministry on Friday. According to the data, the All-India Consumer Price Index for Agricultural Labourers (CPI-AL) and Rural Labourers (CPI-RL) decreased by 2 points and 1 point in May 2025 to stand at 1305 and 1319 points, respectively. The CPI-AL and CPI-RL were 1307 points and 1320 points in April 2025. "The year-on-year inflation rates based on CPI-AL and CPI-RL for May 2025 were recorded at 2.84 per cent and 2.97 per cent, respectively, compared to 7.00 per cent and 7.02 per cent in May 2024. The corresponding figures for April 2025 stood at 3.48 per cent for CPI-AL and 3.53 per cent for CPI-RL," said the labour ministry.