MSMEs oppose power tariff hike

New Tariff Rates

• A charge of Rs100/mth for 0 to 50 units, Rs325/mth for 50 to 100 units and Rs600/mth for above 100 units will be levied

• Proposed to hike power tariffs by 6% every five years

• There will be a direct increase of 32% in power bills due to proposed reforms

• Proposed power tariff hike will be Rs7/unit for a power loom

• The demand charge will also go up from Rs70 a month to Rs200 a month

Chennai: The MSME units and the power loom units in Tamil Nadu have strongly objected to the proposed power tariff hike.

The Tamil Nadu Electricity Regulatory Commission has already requested the public to vent their opinion regarding the proposal submitted by the Tamil Nadu Generation and Distribution Company (Tangedco).

R. Balakrishnan, a leader of the MSME association in Chennai while speaking to IANS said, "It is to be noted that earlier the fixed charges Low Tension (LT) power tariff was Rs35 per unit for a month. Presently, it is split into three categories. It is now proposed at Rs100 (per month) for 0 to 50 units, Rs325 per month for 50 to 100 units and Rs600 per month for above 100 units. This is an astronomical hike and we cannot survive."

The MSME leader also came down heavily against the proposal of the government to hike power tariffs by 6 per cent every five years and said that the move was irrational. He said that while there was no hike in power tariff for the past eight years, the hike has to be done systematically and in steps and not in a single shot as is being proposed presently.

In a related development, the powerloom owners in Tiruppur and Coimbatore have also come out strongly against the proposed hike in the charges.

Secretary of Powerloom association, R. Veluswamy while speaking to IANS said, "We are suffering from yarn price increase and now the proposed power tariff hike will add to our woes. As we came to know that the proposed power tariff hike will be Rs7 per unit for a power loom and it is way higher from the earlier charge of Rs4.60 per unit. The demand charge will also go up from Rs70 a month to Rs200 a month."

He said that there will be a direct increase of 32 per cent in power bills due to these proposed reforms and added that the association is petitioning the government for a cut in power tariff and will appeal to the TN Electricity Regulatory Commission.