The scheme of providing 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. According to Tamil Nadu Power Distribution Corporation Ltd (TNPDCL) data, around 2.46 crore domestic consumers currently benefit under the existing scheme, of whom nearly 77 lakh consumers do not pay any electricity bill as their consumption remains within 100 units.

With the revised order increasing the free consumption slab to 200 units for households consuming less than 500 units, as many as 1.46 crore consumers are expected to benefit. This excludes the 77 lakh consumers already covered under the earlier scheme.

Officials said nearly 59 lakh consumers would not have to pay any electricity charges as their consumption remains within 200 units. The remaining 87 lakh consumers would receive a subsidy of up to Rs 235, calculated at Rs 2.35 per unit for consumption between 101 and 200 units.
A TNPDCL official said only about 23 lakh domestic consumers whose consumption exceeds 500 units in a billing cycle would not benefit from the enhanced free power scheme.

According to the government order, the decision would impose an additional subsidy burden of Rs 1,730 crore on the State government. As per the provisional subsidy order issued by the Tamil Nadu Electricity Regulatory Commission (TNERC), the government was already required to provide Rs 8,428 crore towards domestic power subsidy for 2026-27.