No power tariff hike for domestic users, assures TN electricity minister

CHENNAI: State Electricity minister SS Sivasankar has reiterated that domestic power tariffs will not be increased, and consumers can continue using 100 units of power free of cost.

In a statement, the minister referred to recent media reports suggesting power tariffs may increase. "Following the reports, we issued a detailed statement on May 20, clarifying that tariffs will not be increased for domestic consumers. However, rumors are still making rounds," he said in the statement.

Sivasankar added that the Tamil Nadu Electricity Regulatory Commission (TNERC) has not issued any direction regarding the hike. "Even if the TNERC issues any order, it will be implemented in a way that doesn't affect domestic consumers. Also, subsidies including 100 units of free power will continue," the minister reassured.

However, the minister's statement did not talk about the tariff revision for commercial and industrial consumers.

It is expected that electricity tariff will be increased suo motu by 3.16% from July 1, 2025, under the annual CPI-linked adjustment framework adopted by the TNERC. The provisional year-on-year inflation for April 2025, measured by the All India Consumer Price Index (CPI), stood at 3.16% — the lowest since July 2019 — triggering an automatic tariff revision as per TNERC's 2022 multi-year tariff order.

Two CPI-based revisions – in September 2022 and July 23 – boosted TANGEDCO's annual sales income by roughly Rs 25,600 crore.