Should CM Stalin Reject the Proposed Power Tariff Hike?
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Synopsis
R. Mutharasan, Tamil Nadu's CPI State Secretary, strongly opposes a 3.16% hike in electricity tariffs set for July 1, 2025. He urges Chief Minister Stalin to dismiss the recommendation from TNERC, citing financial burdens on the public and small businesses. Rising costs could worsen the already strained economic situation. What will the government decide?
Key Takeaways
- Proposed tariff increase of 3.16% effective July 1, 2025.
- CPI leader R. Mutharasan opposes the hike.
- Blames previous government's decisions for the current situation.
- Concerns about the impact on small and medium businesses.
- Calls for Chief Minister M.K. Stalin to reject TNERC’s recommendation.
Chennai, May 19 (NationPress) The State Secretary of the Communist Party of India (CPI), R. Mutharasan, has expressed significant disapproval regarding the proposed 3.16 percent increase in electricity tariffs in Tamil Nadu, scheduled to come into effect on July 1, 2025.
In a strongly worded statement, he called on the DMK-led state administration to dismiss the recommendation made by the Tamil Nadu Electricity Regulatory Commission (TNERC). Mutharasan attributed the tariff increase to the previous AIADMK government's choice to participate in the Ujwal DISCOM Assurance Yojana (UDAY), a central initiative aimed at restructuring power distribution finances.
“By endorsing UDAY, the AIADMK government bound the state to annual electricity tariff adjustments based on the lesser of two benchmarks – either 6 percent or the current inflation rate at the end of each fiscal year,” he mentioned. He noted that due to this commitment, TNERC has consistently implemented tariff hikes over the last three years.
Referring to prior increases of 2.18 percent in 2023 and 4.83 percent in 2024, Mutharasan contended that these continual hikes have placed a substantial financial strain on the general populace. The CPI leader further cautioned that escalating electricity costs, coupled with what he termed “anti-people” policies of the Union Government, have led to rising prices of essential goods.
“The cost of living has surged across all sectors, and the proposed tariff increase will only exacerbate the situation,” he stated. Mutharasan also raised alarms about the repercussions of the power tariff increase on small, micro, and medium enterprises, many of which are already struggling due to fixed charges and previous rate hikes. He warned that further tariff adjustments could critically jeopardize the viability of these businesses, which are vital for employment and economic stability.
Describing the latest proposal as “unacceptable under any circumstances,” Mutharasan urged Chief Minister M.K. Stalin to safeguard the interests of the community and industries by firmly rejecting TNERC's recommendations.
The TNERC has yet to provide a formal response to the criticism or clarify whether public hearings will be held prior to the implementation of the proposed increase.
Point of View
It is critical to consider the implications of the proposed electricity tariff hike in Tamil Nadu. The CPI's concerns reflect a broader issue of rising living costs and the impact on small businesses. A balanced approach is needed to address the fiscal challenges while ensuring the welfare of the public. This situation calls for a thorough examination of the recommendations made by TNERC and their long-term effects on the state's economy.
NationPress
08/06/2025
Frequently Asked Questions
What is the proposed electricity tariff increase in Tamil Nadu?
The proposed increase in electricity tariffs in Tamil Nadu is 3.16%, set to take effect from July 1, 2025.
Who opposed the electricity tariff hike?
R. Mutharasan, the State Secretary of the Communist Party of India (CPI), has strongly opposed the proposed electricity tariff hike.
What reasons did Mutharasan give for opposing the hike?
Mutharasan attributed the hike to the previous government's commitment to UDAY and warned of the financial burden it would place on the public and small businesses.
What is UDAY?
UDAY stands for Ujwal DISCOM Assurance Yojana, a scheme aimed at restructuring power distribution finances.
Has TNERC responded to the criticism?
As of now, TNERC has not issued a formal response to the criticism regarding the proposed tariff hike.
