Over Rs 15,000 crore subsidy approved for Tangedco

CHENNAI: The Tamil Nadu Electricity Regulatory Commission (TNERC) has approved Rs 15,332 crore as a subsidy to be paid by the State government to Tangedco provisionally for the financial year 2024-25. The TNERC has also issued directives to Tangedco to get details about hut connections and agriculture load.

Of the total, Rs 7,224.95 crore will go towards subsidy paid to domestic consumers, and Rs 6,780.24 crore towards providing free power to all types of farmers.

Under the provision of free power, the hutment consumers would get Rs 346.25 crore, power loom weavers would receive Rs 552.17 crore and actual places of worship Rs 18.21 crore. The subsidy paid for the LT industry consumers is Rs 321.44 crore.

Tangedco, in their letter dated March 26, stated that the Tamil Nadu government had allotted Rs 5,224.52 crore in the budget estimate for financial year 2024-25 towards tariff-subsidy payable to Tangedco. A provisional subsidy of Rs 14.662.13 crore was sanctioned for Tangedco for 2023-24.

TNERC has also asked Tangedco to reconcile its subsidy allowed with the actual consumption and revenue assessed for 2023-24 and to furnish the report on or before the end of May 31. While submitting the actual consumption details, it should be ensured that the slab-wise consumption is furnished correctly.

Tangedco shall furnish the actual connected load of agricultural consumers and the circle-wise number of hut consumers as of April 1, immediately, and the connected load as of October 1, before December 31.

TNERC has directed the State government to provide subsidy in advance in the manner specified for 2024-25, to compensate for the shortfall in revenue to Tangedco, consequent to the extension of free supply/reduction of tariff as per the policy direction.