Industrial electricity consumers in Tamil Nadu demand reduction in fixed charges

Over 50 industrial associations have urged Chief Minister M.K. Stalin to reduce the fixed charges for industrial electricity consumers and remove networking charges for rooftop solar installations.

Addressing the media in Coimbatore on Friday, the association heads said their members account for about 60% of the industrial power consumption in the State. For low-tension consumers (MSMEs) with 50 KW to 112 KW connected load, the electricity tariff in 2017 was ₹6.35 a unit, whereas now, it is ₹8.25 a unit. The fixed charges were ₹35 a KW in 2017, but now stand at ₹165 a KW. For MSMEs that have connected load (low tension) above 112 KW, the fixed charges have gone up from ₹35 a KW in 2017 to ₹608 a KW, they said.

M. Karthikeyan, president of the Coimbatore District Small Industries’ Association, said the fixed charges rose sharply from ₹35 a KW in 2019 to ₹550 a KW in 2022, and were going up every year. This had led to the closure of several MSMEs, he added.

Pradeep Natarajan, president of the Tamil Nadu Electricity Consumers’ Association, said the multi-year tariff revision is not only for energy charges but for all electricity-related charges. For instance, the charges for changing or shifting a high-tension (HT) box was ₹2,000 in 2019, ₹4,000 in 2022, ₹4,280 in 2024, and ₹4,415 now. For name transfer for wind mill and solar generation services, the cost was ₹1.5 lakh in 2019, ₹2.04 lakh in 2023, and ₹2.21 lakh now, he said.

“If the industries in Tamil Nadu are to be competitive, they need power at reasonable prices. The network charges should be removed for rooftop solar energy generation,” said Rajesh B. Lund, president of the Indian Chamber of Commerce and Industry, Coimbatore.

“We had sought 25% subsidy for solar energy installations by MSMEs. But that did not come through. The industries have been seeking a reduction in fixed charges. That has also not happened,” Mr. Karthikeyan said.