Tamil Nadu Revises Power Tariff by 3.16%, Shields Domestic and Agricultural Users from Impact – EQ
In Short : Tamil Nadu has implemented a 3.16% power tariff hike from July 1 under its multi-year tariff policy. However, domestic users, MSMEs, and farmers are shielded from the impact, with the state absorbing ₹519.84 crore in subsidies. The increase applies to commercial and institutional users, along with higher miscellaneous charges, aiming to maintain financial stability for the power sector.
In Detail : Tamil Nadu has increased electricity tariffs by 3.16% starting July 1, 2025, as part of its multi-year tariff framework. The hike is based on the Consumer Price Index for April 2025, and it marks the fourth consecutive annual revision since the state adopted the new pricing structure in 2022.
Despite the increase, the state government has decided to shield domestic consumers and several other key user groups from the impact. This includes households, small traders, MSMEs, cottage industries, powerlooms, agricultural users, and hut dwellers. The government will bear the financial burden of the hike for these groups.
To implement this relief, Tamil Nadu will provide an annual subsidy of ₹519.84 crore. Domestic users will continue to enjoy 100 units of free electricity every two months, and subsidized rates beyond that threshold will remain unchanged, ensuring minimal impact on household energy expenses.
The revised tariffs will, however, apply to other categories such as apartment common areas, educational institutions, religious places, hospitals, and construction sites. These consumers will see increases in both energy charges and fixed charges per kilowatt of usage.
High tension (HT) consumers, including large industries, will also face a proportional rise in consumption and demand charges. Additionally, miscellaneous charges—such as connection fees, meter rents, and deposit requirements—have been raised uniformly by 3.16% for most LT and HT users, excluding the agriculture and hut categories.
The government’s move aims to maintain the financial viability of the state’s power utilities while protecting vulnerable segments. However, critics warn that the increased burden on commercial and institutional users may eventually lead to higher costs of goods and services, potentially affecting households indirectly.
