TN Power Tariff Revision Decision Put Off Again

Chennai, January 21: | Updated: Jan 22 2003, 05:30am hrs
The Tamil Nadu Electricity Board's (TNEB) hope to revise the power tariff atleast by January end looks dashed as the Tamil Nadu Electricity Regulatory Commission (TNERC) has postponed the final hearing on the revised tariff proposals submitted by the SEB indefinitely.

The meeting was scheduled to be held on Monday, the 20th of January. The delay in notifying the new tariff rates is likely to hit the revised revenue projection made by the SEB in its tariff proposals submitted to TNERC.

Sources in the know told f The Financial Express that the tariff regulator has put off the final hearing on the tariff revision proposal indefinitely citing administrative reasons.

"The regulatory commission has postponed the final hearing on the tariff revision proposal indefinitely on the grounds of administrative problems. The new date has not been fixed so far," sources said.

TNERC sources, while contacted, also confirmed that the meeting did not take place on Monday.

TNEB has already missed the original deadline of December 1, 2002 for power tariff revision following delay in providing the final reply to the objections raised by the public and various associations to its tariff hike proposals.

The new tariff revision order is expected to put an end to the practice of cross subsidy in power tariff besides switching off the supply of free power to agriculture.

The board, in its tariff revision plan submitted to SERC, has proposed to do away with the practice of free power to agriculture besides rationalisation of power tariff across the board.

The revised tariff plan was estimated to net TNEB Rs 12,654.83 crore for the fiscal 2002-03 assuming energy consumption at 41,633 MW level. However, this estimate is likely to go haywire since it missed the earlier deadline.

The board has suggested to slap agriculture and government seed farms Rs 0.50 per unit or Rs 600 per 1 HP per annum. Currently, this category has been drawing free power from TNEB. For self-financing scheme, the new plan suggests a tariff of Rs 0.50 per unit or Rs 600 per 1 HP per annum.

For high tension users falling in the 1-A category, the proposed tariff is Rs 3.70 per unit (Rs 3.30 per unit) in Chennai metro and Rs 3.60 per unit (Rs 3.20 per unit) for non metro users. For 1-B category, the proposed tariff is Rs 4.70 per unit (Rs 4.70 per unit) in Chennai metro and Rs 4.80 per unit (Rs 4.80 per unit) for non-metro users.

For low tension users falling in I-A category consumption upto 25 units, the proposed tariff is Rs 1.10 per unit (Rs 0.85 per unit) and from 26 units to 50 units Rs 1.30 per unit (Re 1 per unit). From 51 units to 100 units, it is Rs 2.60 per unit (Rs 2.00 per unit). For 101 units to 300 units the suggested tariff is Rs 4 per unit (Rs 3 per unit) and for 301 unit to 500 units it is Rs 4.75 per unit (Rs 4 per unit). Tiny industries, was however, spared from the proposed hike.