The Tamil Nadu Electricity Consumers Association (TECA) has called on Chief Minister M K Stalin to reverse the recent power tariff increase, warning of potential industry migration to other states due to rising costs.
Coimbatore: The Tamil Nadu Electricity Consumers Association (TECA) has expressed grave concerns over the recent electricity tariff hike, warning that it could lead to industries migrating from Tamil Nadu to other states. TECA president N Pradeep has urged Chief Minister M K Stalin to roll back the increase to prevent this potential exodus.
In a statement released on Thursday, Pradeep described the Tamil Nadu Electricity Regulatory Commission's July 15 order on revised electricity tariffs as a "shock" for consumers, citing the substantial increase. He emphasized that the retrospective nature of the tariff order would severely impact consumers who had already planned their energy costs based on previous rates.
TECA highlighted that industries in Tamil Nadu are already grappling with challenging conditions due to the global economic situation, exacerbated by the ongoing conflict between Ukraine and Russia. The association noted a significant decline in export orders for key sectors such as textiles, foundry, construction materials, and automobile components over the past 18 months, attributing this to reduced buying capacity in major export markets.
The statement also pointed out the geographical disadvantage faced by Tamil Nadu industries. Being at the southern tip of the peninsula, these industries incur higher logistics costs for both raw material procurement and finished product distribution. TECA argued that the power tariff hike would further increase overall operational costs, potentially making Tamil Nadu industries less competitive.
While acknowledging Tangedco's financial losses and the necessity for tariff revision, TECA urged officials to find alternative solutions that wouldn't burden consumers. The association called on the Chief Minister to take immediate action to reduce the tariff hike, emphasizing the need to ensure the survival of industries in Tamil Nadu and prevent their migration to northern states.
In a related development, office bearers from over 50 industry associations convened on Thursday, unanimously deciding to appeal to the Chief Minister for a reduction in power tariffs to support the survival and growth of MSMEs. Codissia president M Karthikeyan proposed specific reductions in fixed charges: ₹35 for 0-50kw, ₹70 for 50-112 kw, ₹350 for above 112kw, and ₹350 for HT connections.
As the situation unfolds, the response from the state government and its potential impact on Tamil Nadu's industrial landscape remain to be seen.
In a statement released on Thursday, Pradeep described the Tamil Nadu Electricity Regulatory Commission's July 15 order on revised electricity tariffs as a "shock" for consumers, citing the substantial increase. He emphasized that the retrospective nature of the tariff order would severely impact consumers who had already planned their energy costs based on previous rates.
TECA highlighted that industries in Tamil Nadu are already grappling with challenging conditions due to the global economic situation, exacerbated by the ongoing conflict between Ukraine and Russia. The association noted a significant decline in export orders for key sectors such as textiles, foundry, construction materials, and automobile components over the past 18 months, attributing this to reduced buying capacity in major export markets.
The statement also pointed out the geographical disadvantage faced by Tamil Nadu industries. Being at the southern tip of the peninsula, these industries incur higher logistics costs for both raw material procurement and finished product distribution. TECA argued that the power tariff hike would further increase overall operational costs, potentially making Tamil Nadu industries less competitive.
While acknowledging Tangedco's financial losses and the necessity for tariff revision, TECA urged officials to find alternative solutions that wouldn't burden consumers. The association called on the Chief Minister to take immediate action to reduce the tariff hike, emphasizing the need to ensure the survival of industries in Tamil Nadu and prevent their migration to northern states.
In a related development, office bearers from over 50 industry associations convened on Thursday, unanimously deciding to appeal to the Chief Minister for a reduction in power tariffs to support the survival and growth of MSMEs. Codissia president M Karthikeyan proposed specific reductions in fixed charges: ₹35 for 0-50kw, ₹70 for 50-112 kw, ₹350 for above 112kw, and ₹350 for HT connections.
As the situation unfolds, the response from the state government and its potential impact on Tamil Nadu's industrial landscape remain to be seen.