Tamil Nadu: CPI urges CM Stalin to reject proposed power tariff hike

In a sharply worded statement, he urged the DMK-led state government to reject the recommendation put forth by the Tamil Nadu Electricity Regulatory Commission (TNERC). Mutharasan blamed the tariff hike on the previous AIADMK government's decision to join the Ujwal DISCOM Assurance Yojana (UDAY), a central government scheme aimed at restructuring power distribution finances.

"By signing on to UDAY, the AIADMK government committed the state to annual electricity tariff revisions based on the lower of two benchmarks - either 6 per cent or the prevailing inflation rate at the close of each financial year," he said. He pointed out that TNERC has implemented tariff hikes consistently over the past three years due to this commitment.

Citing previous revisions of 2.18 per cent in 2023 and 4.83 per cent in 2024, Mutharasan argued that these repeated increases have imposed a heavy financial burden on the general public. The CPI leader further warned that rising electricity costs, when combined with what he described as "anti-people" policies of the Union Government, have contributed to soaring prices of essential commodities.

"The cost of living has gone up across all sectors, and the proposed tariff hike will only worsen the situation," he said. Mutharasan also raised concerns about the impact of the power tariff hike on small, micro, and medium-scale industries, many of which are already reeling from fixed charges and previous rate increases. He warned that further tariff revisions could severely undermine the viability of these businesses, which play a crucial role in employment and economic stability.

Calling the latest proposal "unacceptable under any circumstances," Mutharasan appealed to Chief Minister M.K. Stalin to protect the interests of the people and industries by firmly rejecting the TNERC's recommendation.

The TNERC is yet to issue a formal response to the criticism or clarify whether public hearings will be conducted ahead of the implementation of the proposed hike.