Business/Economy

Tamil Nadu: TNERC cuts power rates for commercial consumers

Tamil Nadu: TNERC cuts power rates for commercial consumers

Electricity tariffs for commercial and industrial consumers have been reduced by Tamil Nadu Electricity Regulatory Commission. Corresponding to what was recommended in the tariff policy announced previous year, the TNERC has brought down cross-subsidy surcharges (CSS) to the range of Rs. 1.6-2.5 a unit, the lowermost among industrial states.


Year 2016’s National Tariff Policy recommended a new formula for determination of CSS and capped it at 20% of the tariff. Also, it introduced an added surcharge for these customers when they moved to sources other than the state’s distribution companies (discoms).


Therefore, whereas states where the industrial rates were low augmented tariffs, Tamil Nadu, where commercial consumers were previously paying high rates, decided to lessen the burden. To recover the cost of supplying subsidised power to a section of the population, CSS is levied by the state discoms. In the previous financial year, CSS crossways a dozen states augmented 30% to 600%.