Explained | Power tariff revisions and the state of DISCOMs
The story so far: On July 13, the Tamil Nadu Generation and Distribution Corporation filed a general retail power tariff revision petition with the Tamil Nadu Electricity Regulatory Commission proposing to hike power tariffs by 10% to 35%. While announcing the government’s decision to increase the tariff, Electricity Minister V. Senthilbalaji maintained that the proposed power tariff hike will not affect one crore domestic consumers and people living in hutments out of a total of around 2.39 crore. According to Niti Aayog’s report of August 2021, most power DISCOMs incur losses every year — the total loss was estimated to be ₹90,000 crore in the financial year 2021. Despite the Centre’s prescription for annual or periodical revision of retail power tariff, parties in power in the States link the process to their prospects at the time of Assembly or Lok Sabha polls.
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