TN prepares draft rules for 5-yr power tariff revision

Chennai: Chennai is set for another cycle of annual power tariff revisions from 2027, as Tamil Nadu Electricity Regulatory Commission (TNERC) has prepared draft regulations for a multi-year tariff framework for five years. This could lead to yearly increases in consumption and fixed charges across all consumer categories till 2031.The multi-year tariff formula was introduced in 2022. The fifth and final tariff revision is due this July. For the last four years, tariffs were revised based on consumer price index, and Tamil Nadu Power Distribution Corporation (TNPDCL) may follow the same pattern or suggest a different method to meet the required revenue by the discom. "In the new five year tariff cycle starting in 2021, revised tariffs will come into force from April 2027," said a TNPDCL official. According to the draft regulations, TNPDCL should file the petition for the multi-year tariff formula before TNERC by Nov this year, and the tariff revision should be adopted within 120 days after feedback from stakeholders.Though tariffs were revised annually for the last four years, the state govt absorbed the spike in consumption charges for domestic consumers and a few other categories twice to save consumers the additional burden. It increased the subsidy burden on the state govt to 17,000 crore. The latest announcement by CM C Joseph Vijay to extend free power to an extent of 200 units to eligible consumers, has increased the quantum of subsidy to 19,000 crore.Officials said that work is underway to prepare the petition. However, the regulations empower the regulatory body to revise the tariff suo motu even if TNPDCL fails to formally file a petition for tariff revision.