Tamil Nadu Government Announces 200 Units of Free Power for Domestic Consumers

The Tamilaga Vettri Kazhagam government's announcement of 200 units of free power for domestic consumers using below 500 units bimonthly will further increase the State's annual subsidy burden by nearly ₹2,000 crore. A government order issued on Sunday by the Energy Department announced the 200-unit free electricity scheme, which will benefit 2.45 crore domestic consumers.

The subsidy burden is expected to cross ₹10,100 crore this fiscal, with ₹9,100 crore for those consuming up to 500 units and ₹1,000 crore for the 100 units of free power for those consuming more than 500 units.

According to a senior official of the Tamil Nadu Power Distribution Corporation limited, the major part of the subsidy covered 100 units free for domestic consumers, which worked out to nearly ₹8,500 crore a year.

The government will bear the entire burden of ₹9.90 per unit for 2.20 crore of the 2.45 crore consumers, excluding the 20 lakh consumers who use more than 500 units bimonthly. The subsidy for 100 units will be covered for the 20 lakh consumers.

The Tamil Nadu Electricity Regulatory Commission will likely review the new tariff order, and the government is expected to announce further details on the implementation of the scheme in the coming days.