CHENNAI: The Tamil Nadu Electricity Regulatory Commission (TNERC) has ordered the state government and Tamil Nadu Power Distribution Corporation Ltd (TNPDCL) to adjust Rs 256.33 crore in excess electricity subsidy paid during 2025-26 against the subsidy payable in the second quarter of 2026-27.

In its final tariff subsidy order issued on September 24, TNERC said the actual subsidy requirement for the year was Rs 16,795.81 crore, against the provisional subsidy of Rs 17,052.14 crore. The difference resulted in an excess subsidy of Rs 256.33 crore.

The domestic category accounted for the bulk of the excess, with Rs 202.99 crore paid over the actual requirement. Other major excesses included Rs 34.07 crore under LT III B industries' ToD charges, Rs 30.61 crore for agricultural consumers under the special free supply category and Rs 14.33 crore for powerloom consumers.

However, TNERC found an additional Rs 29.49 crore payable to TNPDCL for categories where actual subsidy exceeded the provisional amount. This included Rs 10.05 crore for common supply and Rs 8.85 crore for lift irrigation.

Quarter-wise, the excess subsidy stood at Rs 36.08 crore in the first quarter, Rs 3.89 crore in the second, Rs 54.63 crore in the third and Rs 161.73 crore in the fourth quarter.

The commission also identified an additional Rs 3.47 crore subsidy requirement due to wrong classification of automatic meter reading units in the first quarter. After accounting for this, the excess subsidy to be adjusted in the second quarter of 2026-27 was fixed at Rs 252.86 crore.

TNERC directed TNPDCL and the government to adjust it in the second quarter of 2026-27.