Up to 90 p.c. cut for industries; Tariff hike by 15-30 p.c.

Power cuts are back again for High Tension (HT) consumers in the State. The Tamil 
Nadu Generation and Distribution Corporation (Tangedco) has effected a 20 per cent cut 
during non-peak hours for HT industrial and commercial consumers from Tuesday.

It has also imposed restrictions on power consumption during peak hour (6 p.m. to 10 p.m.), 
permitting these consumers to use only 10 per cent of the demand and energy quota fixed.

According to an official circular issued on Tuesday, the government has announced 
demand and energy cut for the HT industrial and commercial consumers and the restriction 
and control measures came into effect the same day. The 20 per cent power cut on demand 
and energy would be from 10 p.m. to 6 p.m. the next day.

With regard to peak hour (6 p.m. to 10 p.m.) restriction, the consumers will be permitted to 
use only 10 per cent of the demand and energy quota fixed.

Power cut was withdrawn for the HT industrial and commercial consumers from June 1 last.

A Tangedco official here pointed out that wind energy generation had dropped in the State in
the last two days though winds were expected to be good till this month-end.

The measures were implemented immediately so that power supply was not affected during 
the peak hours.

An industry source said that though the Tangedco had started implementing the power cut, 
there was no clarity on determining the demand and energy quota.

Tariff hike by 15-30 p.c.

Electricity tariffs in Tamil Nadu are all set to go up dramatically once again within just two 
years to mop up over Rs. 6,850 crore.

If the new rate proposed by the Tamil Nadu Electricity Regulatory Commission goes through,
domestic and other low tension consumers, on average, have to shell out nearly 15 per cent 
more. The power bill for industries will balloon by about 30 per cent. The proposed hike, 
which is across the board, would particularly hit educational institutions, panchayats and 
other local bodies. Among domestic consumers, the existing slabs that range from Rs. 2.60 - 
Rs. 5.75 a unit (without subsidy) will go up to Rs. 3-Rs. 6.60 a unit. The subsidy for them, 
which was announced by the government in April 2012 following protests against the 
previous tariff hike, is likely to continue, sources said.

Chief Minister Jayalalithaa, however, pointed out that the government would ensure that 
the tariff revision would not affect the poorer and weaker sections, implying that the free 
supply of power to the farm sector and hutments would continue with the State giving 
enough matching subsidy when the new tariff is notified.

Tariff concession to a section of the domestic consumers is also likely to continue.