According to a decision made by the tamil Nadu electricity Regulatory Commission (TNERC) last year, the cost of electricity in tamil Nadu would increase by 6% as of July 1. In september 2022, the initial wave of tariff revisions—which was about 15%—went into effect. According to a senior Tangedco official, "Tangedco had stated in the tariff petition submitted to the TNERC that the consumer price index (CPI) value of May (2022) will be taken as the basis from next year for calculating the tariff for all sections of consumers."

The source said that the tariff appeal specified an annual increase in the cost of electricity for all customer groups through 2026–2027. "We have limited the increase to 6%. The utility considered a five-year control period, which covers the current fiscal year, he continued. The tripartite agreement for the execution of the Ujwal DISCOM Assurance Yojana (UDAY), which was signed in january 2017 by the state government, Tangedco, and the Union Government, cites the 6% figure.

"Many states have been following a similar system for the tariff revision or adopting wholesale price index (WPI) as the basis for the calculation of the quantum of revision in the tariff," the official added. The petition addresses the discrepancy between the predicted revenues for the following four years and the annual revenue requirement (ARR). The size of the raise, which will be chosen yearly by the TNERC, has not been taken into account in the figures from 2023–24 to 2026–27.

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