Fall in ‘price index’ calls for electricity tariff cut, TN mills association appeals to regulator
In a letter addressed to the Commission, TASMA pointed to a notable reduction in CPI/DA points as published by the Labour Bureau
CHENNAI: The Tamil Nadu Spinning Mills Association (TASMA) has urged the Tamil Nadu Electricity Regulatory Commission (TNERC) to reduce electricity tariffs for the financial year 2025–26 under the Multi Year Tariff (MYT) policy, citing a significant decline in the Consumer Price Index (CPI) for the year 2024–25.
In a letter addressed to the Commission, TASMA pointed to a notable reduction in CPI/DA points as published by the Labour Bureau. According to the data, the DA Points based on the 1935-36 index decreased by 595 points between April 2024 and March 2025. Similarly, the indices for 1960 and 1982 base years also fell by 125 and 25 points, respectively.
Referring to the TNERC's September 2022 tarrif order, which stipulates that tariff adjustments under the MYT framework should reflect inflationary trends, including CPI fluctuations, the association argued that since the CPI has shown a downward trend, it would be inappropriate to increase tariffs from July 1, 2025, as previously scheduled.
"The CPI/DA Points have come down considerably during the year 2024–25, and hence, the tariff should be reduced from the notified rates implemented from July 1, 2024 onwards," said K. Venkatachalam, Chief Advisor of TASMA.
The association has asked TNERC to take the reduced CPI into full consideration when finalising the tariff order for the upcoming financial year.
The appeal by the association came in the wake of the Union Ministry of Statistics and Programme Implementation releasing the All India Consumer Price Index for April 2025.
The CPI measures overall inflation by tracking the price changes of a broad basket of goods and services consumed by the general population and is used for economic policy and inflation monitoring. In contrast, the CPI for Dearness Allowance (CPI-DA) specifically tracks price changes relevant to government employees and industrial workers and is used to calculate adjustments in salaries and pensions through Dearness Allowance. While CPI General is published by the National Statistical Office (NSO), CPI-DA is released by the Labour Bureau and is based on a different consumer group and methodology.
