The Tamil Nadu Electricity Regulatory Commission, which has been very active of late(having passed the solar tariff order and the order on declining to approve the Tamil Nadu solar bidding process), has proposed electricity tariff hikes. Stakeholders have been given time till 23rd October 2014 to submit their views on the same.
The Chief Minister of Tamil Nadu has already announced that the tariff hike for the poor will be absorbed by the state government in the form of increased electricity subsidy. It is not clear regarding the categories will benefit from the subsidies, but it is quite likely that the industrial consumers will not be insulated from the tariff hikes. Apart from the tariff hike, power cuts have also been reintroduced as the wind energy generation has not picked up so far(more here). The industries have voiced their concerns on both the power tariff increase and the power cuts(here).
The increased tariff means that solar moved one more inch closer to grid parity(for industrial consumers), and it is likely that more industries will start exploring the option of installing captive solar generation capacity. If the tariff for residential consumers at the higher end of consumption also goes up, the economics of solar PV systems with net-metering improves(related news here). Third party wind power sale also becomes more attractive to the wind power generators.
The tariff details are reproduced below.
1. LT Consumers
2. HT Consumers
The public notice by the TNERC can be downloaded here.
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