CHENNAI: As the Consumer Price Index (CPI)-linked annual power tariff revision for 2025-26 kicks in on Tuesday, as per the orders issued by the Tamil Nadu Electricity Regulatory Commission (TNERC) on Monday, the state government has announced that it will absorb Rs 519.84 crore additional cost per year to protect 2.83 crore power consumers, including households and small-scale industries, from incurring higher power tariff.

The order issued by TNERC has increased energy charges, fixed charges, and demand charges for all categories of consumers at 3.16% as expected, which is the escalation rate of CPI from April 2024 to April 2025.

Soon after the order was issued, a release by Minister for Electricity SS Sivasankar said, as assured earlier by Chief Minister MK Stalin, the increase in tariff will be fully absorbed by the government for 2.42 domestic consumers for all consumption slabs.

Since the exemption from fixed charges for domestic consumers will also be continued, there will be no impact on them due to the tariff increase, the release said.

The other category of users whose tariff hike will be borne by the government includes low-tension industries with a sanctioned load of up to 50 kW, small commercial establishments using up to 500 units of power bimonthly, cottage and micro industries, and power looms.

The release clarified that free power of 100 units for domestic consumers, 1,000 units for power looms, and free power for huts will continue.

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