MSMEs sector seeks rollback of second power tariff hike

CHENNAI: The Micro, Small and Medium Enterprises (MSMEs) are unhappy over the second electricity tariff hike in a short time span of nine months as they were yet to come out of the last year's steep hike.

Tamil Nadu Electricity Regulatory Commission has increased the electricity tariff for all consumers by 2.18 per cent from July 1.

The Commission has increased energy charges to Rs 7.65 per unit for LT industries from Rs 7.50 per unit while the fixed charges for 0-50 kW are Rs 77 per kW per month, above 51-112kW is Rs 153 per kW per month and above 112 kW (CT Service) is Rs 562 per kW per month.

Tamil Nadu Association of Cottage and Micro Enterprises Coimbatore District President J James said that the power tariff has been increased again at a time when the MSMEs were seeking roll back of the last year's tariff hike. "We are not against the hike in the energy charges but the fixed charges and peak hour charges should be rolled back," he said.

He said that before the last year's tariff hike, under the LT industries tariff, they were paying fixed charges of Rs 35 per kilowatt.

"Now the fixed charges have been hiked steeply. The consumers with a sanctioned demand up to 50 kW is Rs 77 per kW per month, 51-112 kW is 153 per kW per month and above 112 kW is Rs 562 per kW per month. The hike in fixed charges is nearly over 250 per cent. It is nearly crippling the MSME sector," he said, adding that hence they have been seeking a reduction of fixed charges without any slabs.

James said that the peak hour charges are being collected from the LT industries consumers even without installing the time of the day meter required for it.

"Even though the government has reduced the peak hour charges from 25 per cent to 15 per cent, we are seeking complete rollback," he said, urging the state government to withdraw the tariff hike to safeguard the MSMEs sector and workers whose livelihood depends on it.