According to a Daily Thanthi report, the scheme offering the first 100 units of electricity free was introduced in 2016 by the then Chief Minister J Jayalalithaa after assuming office for a second consecutive term. Following this, newly sworn-in Chief Minister C Joseph Vijay signed the order to enhance the free electricity slab to 200 units as one of his first major decisions after taking charge. The government order for the same was issued immediately.

According to data from the Tamil Nadu Power Distribution Corporation Ltd (TNPDCL), nearly 2.46 crore domestic consumers are currently covered under the existing 100-unit free electricity scheme. Of these, around 77 lakh consumers do not pay any electricity charges as their consumption remains within 100 units.

Officials said nearly 59 lakh households consuming within 200 units would now receive complete exemption from electricity charges under the revised scheme. In addition, about 87 lakh consumers using between 201 and 500 units would receive a subsidy benefit of up to Rs 235, calculated at Rs 2.35 per unit for consumption between 101 and 200 units.

However, around 23 lakh domestic consumers whose electricity consumption exceeds 500 units in a billing cycle will not benefit from the enhanced free power scheme, officials added.

The government order stated that the revised scheme would impose an additional subsidy burden of Rs 1,730 crore on the State government. The Tamil Nadu Electricity Regulatory Commission (TNERC) had already directed the government to provide Rs 8,428 crore towards domestic electricity subsidy for the financial year 2026-27.