The Tamil Nadu Generation and Distribution Corporation (Tangedco), which is already reeling under a Rs. 8,000-crore estimated loss, could find itself in further trouble if it were to fulfil the AIADMK’s poll promise of 100 units of free power to domestic consumers.
At a time when power managers are stressing on the need to save electricity, this ‘welfare measure’ would push up the demand, industry observers say.
Though all households would benefit from the scheme, “78 lakh people using only 100 units of power will not be burdened with EB bills,” Ms. Jayalalithaa had said announcing the scheme.
The State has 1.88 crore domestic consumers.
A senior Tangedco official, however, denied that the corporation would suffer a loss. He maintained that the financial burden of the scheme, estimated to be Rs. 1,608 crore, would be borne by the State government in the form of additional subsidy. The state government has been promptly paying the subsidy in recent years and it has paid Rs. 5,953 crore during the financial year 2014-15, he added.
Key political issue
Power supply and electricity tariff have emerged as a key political issue in this election with both the AIADMK and the DMK making a promise on this front. In its manifesto, the DMK had announced that it would convert the bi-monthly electricity cycle to one month to reduce charges for domestic consumers.
However, power managers had ruled out any financial benefit arising from such a switch citing an announcement made by the Tamil Nadu Electricity Regulatory Commission (TNERC) in this regard.
In 2014-15, the government had paid a subsidy of Rs. 5,953 crore
to Tangedco
