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Tamil Nadu Government Implements Temporary Hold On Peak-Hour Power Charges For MSMEs

According to reports, the Tamil Nadu Generation and Distribution Corporation has calculated a loss ranging from Rs 188.79 to Rs 196.10 crore due to the non-collection of peak hour charges and Rs 7.31 crore because of the reduction in network charges.

While the revised power tariffs continue to face opposition from Micro, Small, and Medium-scale Enterprises (MSMEs) in the state, a temporary hold on peak-hour charges has been implemented by the Tamil Nadu government. Currently, LTCT (Low Tension Current Transformer) consumers are subjected to a 15% levy on peak-hour charges.

Additionally, network charges for solar panels have been reduced by 50%. This suspension of peak hour charges will persist until the installation of new smart meters by the state government.

On September 25, approximately 40,000 MSMEs in Tamil Nadu ceased operations in protest against the heightened power tariff. The strike by the Tamil Nadu Open-ended Spinning Mills Association (OSMA) had been extended until the end of the month, citing sustained losses due to various factors, including the revised tariffs.

A ground report from Coimbatore by TNM indicates that the exacerbated peak hour and fixed charges have further complicated the challenging situation for MSMEs, which are already contending with GST and escalating raw material prices.

According to reports, the Tamil Nadu Generation and Distribution Corporation has calculated a loss ranging from Rs 188.79 to Rs 196.10 crore due to the non-collection of peak hour charges and Rs 7.31 crore because of the reduction in network charges. The report suggests that these losses will be compensated through a subsidy.

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