Consumers assn urges Tangedco to defer tariff hike by a year
Average industrial power consumption in Tamil Nadu dropped by over 8 per cent year-on-year in Q1 2025, while MSME operating capacity fell from 74 per cent to 61 per cent, according to the data
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CHENNAI: The Tamil Nadu Electricity Consumers' Association (TECA), one of the state's largest industrial bodies, has urged the Tamil Nadu Generation and Distribution Corporation (Tangedco) to defer the proposed Multi-Year Tariff (MYT) revision slated for July 2025, citing a worsening economic and geopolitical climate.
In a memorandum submitted to the Tangedco chairman, TECA president Pradeep Natarajan underscored the grave stress faced by industries, particularly MSMEs, due to global disruptions, including ongoing conflict in the Middle East, and domestic economic challenges.
“This is not the time to increase power tariffs. Our industries are already struggling with falling demand, rising energy input costs, and mounting financial stress. A new tariff hike will only deepen the crisis,” he said.
TECA presented data to back its appeal. Average industrial power consumption in Tamil Nadu dropped by over 8 per cent year-on-year in Q1 2025, while MSME operating capacity fell from 74 per cent to 61 per cent, according to the data. Export orders also declined by over 23 per cent, and loan defaults in the MSME sector surged by 75 per cent, as per the RBI data.
The association has called for a one-year deferment of the tariff revision, a freeze on current tariff levels until conditions stabilise, and special relief for energy-intensive, labour-generating industries.
Expressing hope that the government and Tangedco would respond with sensitivity to protect jobs and industrial continuity, Natarajan said, “Empathy and economic prudence must go hand in hand.”
