Power tariff hiked; domestic consumers, small traders, industries spared
Electricity Minister SS Sivasankar said Chief Minister MK Stalin had directed officials to ensure that small and middle-class consumers are not affected by the tariff hike.
TNERC
CHENNAI: Domestic power consumers, powerlooms, cottage industries, micro and small enterprises, and small traders will be absolved from the Tamil Nadu Electricity Regulatory Commission’s (TNERC) decision to effect a 3.16% tariff hike effective July 1. This follows the State government's decision to fully absorb the hike for these categories.
Electricity Minister SS Sivasankar said Chief Minister MK Stalin had directed officials to ensure that small and middle-class consumers are not affected by the tariff hike. He said 2.83 crore consumers would be shielded from the impact. The government will bear an additional annual cost of Rs 519.84 crore to implement this relief.
The tariff increase comes under a multi-year framework introduced in 2022, which allows for annual revisions linked to inflation, with a cap of 6%. The current revision, the fourth revision in successive years since September 2022, is based on the Consumer Price Index (CPI) for April 2025.
The TNERC order noted that the State had issued a policy directive to protect specific categories of consumers from the hike.
Minister Sivasankar said domestic users would continue to receive 100 units of free power. For those using more than 100 units, the government will provide an additional subsidy of Rs 374.89 crore.
Free power supply for agriculture and huts will continue. Powerloom users (LT III-A) will get Rs 7.64 crore in support. A total of Rs 51.40 crore has been allocated to benefit 34 lakh small traders (LT V) whose bimonthly consumption is less than 500 units.
About 2.81 lakh industries under LT III-B with a sanctioned load of up to 50 kW will not see any increase, thanks to a subsidy of Rs 76.35 crore. Another Rs 9.56 crore will support 2.7 lakh cottage and micro units under LT III-A1.
Among low-tension consumers, LT-1D connections — used for common areas in multi-tenement buildings — will see energy charges rise from Rs 8.55 to Rs 8.80 per unit. The fixed charge will increase from Rs 107 to Rs 110 per kilowatt per month. Similarly, LT-1E connections — used in residential buildings without lifts — will also be charged Rs 8.80 per unit, with the fixed charge increasing to Rs 110 per kilowatt.
Other low-tension categories will also face moderate increases. Government schools and hospitals under LT IIB(1) will be charged Rs 8.80 per unit, up from Rs 8.55. Private educational institutions and medical colleges under LT IIB(2) will pay Rs 9.40 per unit. Places of worship (LT IIC) will be charged Rs 6.40 per unit for the first 120 units and Rs 7.75 for units beyond that. Construction connections (LT VI) will see a hike from Rs 12.85 to Rs 13.25 per unit.
High-tension (HT) consumers will also face a 3.16% increase.
Minister Sivasankar said the tariff revision balances the need to protect vulnerable consumers while ensuring the financial health of the Tamil Nadu Power Distribution Corporation Ltd (TNPDCL). The government will compensate the utility for the resulting revenue loss.
