Electric utility TN won’t withdraw subsidy after rate hike


Chennai, Sep 26 (IANS): The Tamil Nadu Generation and Distribution Company (Tangedco), the state government electricity utility, will not lobby to withdraw the electricity subsidy for consumers. While the Tamil Nadu Electricity Regulatory Commission gave the green signal to withdraw the tariff subsidy, the top brass of Tangedco decided to continue with the subsidy.

Sources at Tangedco told IANS this is because the electric utility has drawn statewide ire after the recent power rate hike. The opposition and the general public had come out against the increase.

The government had issued a proposal for the public to voluntarily waive the subsidy on electricity charges. Currently, for the first 100 units, electricity is free in the state, and for the next 101 to 200 units, there is a 50% subsidy. This would mean that a consumer who prefers to waive a subsidy would have to pay an additional Rs 675.

State Department of Electricity sources told IANS that if Tangedco attempted to implement the program, there would be a lot of criticism and as a result, the state plans not to go overboard. . However, the state electric department is planning a massive blitz on how Tangedco and the state will benefit if the people voluntarily give up subsidies.

The campaign will be carried out with movie and television stars and the Tangedco and the state electricity department believe that if the campaign is carried out on a large scale, more people would voluntarily give up the subsidy, which would lead Tangedco to strengthen itself financially.

CM Swamidas, Madurai’s Consumer Protection Chairman, in an interview with IANS said: “Tangedco needs to make it a domestic talking point first, then maybe people would be more inclined to give up subsidies. Otherwise, it’s spoils.”


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