TNERC pegs TNEB subsidy at Rs 1,652.43 cr

Our Bureau

Chennai, April 5

The Tamil Nadu Electricity Regulatory Commission (TNERC) has fixed the subsidy payable by the State Government to the Tamil Nadu Electricity Board at Rs 1,652.43 crore for 2010-11, according to a press release from the TNERC.

This is in line with the provisions of the Electricity Act 2003, which provides for the payment of the subsidy when the State Government opts to levy a tariff lower than that determined by the regulatory commission.

Nearly 76 per cent of the subsidy, about Rs 1,249 crore, is towards compensating for the tariff levied for domestic consumers. They are partially subsidised about 35 paise to Rs 1.75 a unit; about 13 per cent, Rs 219 crore is subsidy meant for agricultural consumers who are fully subsidised; and the balance 11 per cent, Rs 184 crore is allotted to hut consumers who are fully subsidised, and handloom weavers, power loom weavers, street lights, public water supply, and for places of public worship.

Section 65 of the Electricity Act, 2003 mandates the State Government to pay the subsidy in advance, failing which the tariff fixed by the State Commission would be applicable. The subsidy calculation is based on existing tariff.

Tamil Nadu Electricity Board has since filed a tariff petition for revision of tariff.