Beatrice Lang
The electricity tariff in Chennai, India, is a contentious issue, with residents expressing frustration at tariff hikes. The Tamil Nadu Generation and Distribution Corporation (TANGEDCO) has increased tariffs for almost all sectors, including residential, commercial, and industrial consumers. TANGEDCO applies different rates based on consumer categories, with rates varying for domestic, commercial, and industrial users. The electricity bill is calculated based on consumption and the applicable tariffs for each category. Tariff hikes have resulted in steep increases in common area charges for small and medium-sized apartments. The Tamil Nadu Electricity Regulatory Commission (TNERC) has approved these hikes, citing consumer price inflation (CPI) as a factor, and the new tariffs will be applicable from July 1, 2024 onwards.
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What You'll Learn
How to calculate your Chennai electricity bill
Electricity charges in Chennai are calculated based on consumption and the applicable tariffs for your category. TANGEDCO applies different rates based on whether you are a domestic, commercial, or industrial consumer.
Step 1: Check your consumer category
First, verify your consumer category. This will be listed on your electricity bill. TANGEDCO applies different rates for domestic, commercial, and industrial consumers.
Step 2: Find your unit rate
The rate per unit of electricity will depend on your consumer category and usage. You can find this information on the TANGEDCO website or on your bill.
Step 3: Calculate the cost of electricity consumed
Multiply the number of units consumed during the billing cycle by the rate per unit. This will give you the total cost of the electricity you have consumed.
Step 4: Add fixed charges and surcharges
In addition to the cost of electricity, there may be other charges such as meter rent, environmental surcharges, or service surcharges. These will also be listed on your bill or can be found on the TANGEDCO website.
Step 5: Calculate the total charges
Finally, add up the cost of electricity and any additional charges to arrive at the total amount due on your electricity bill.
It is worth noting that Chennai's electricity tariff rates have recently increased by 4.83% for domestic and all other consumers, with slabs for domestic consumers increasing by 20 paise to 55 paise per unit.
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Tariff slabs for domestic consumers
Tariff rates in Chennai are calculated based on consumption and the consumer category. The Tamil Nadu Generation and Distribution Corporation (TANGEDCO) applies different rates for domestic, commercial, and industrial consumers.
The Tamil Nadu Electricity Regulatory Commission (TNERC) announced a 4.83% tariff hike for domestic and all other consumers in July 2024. The slabs for domestic consumers have been increased in the range of 20 paise to 55 paise per unit.
- For consumption up to 400 units bi-monthly, the rate per unit is ₹4.80.
- For consumption between 401 and 500 units, the rate per unit is ₹6.45.
- For consumption between 501 and 600 units, the rate per unit is ₹8.55.
- For consumption between 601 and 800 units, the rate per unit is ₹9.65.
- For consumption between 801 and 1000 units, the rate per unit is ₹10.70.
- For consumption above 1000 units, the rate per unit is ₹11.80.
Previously, the tariff for domestic consumers was ₹4.50 up to 400 units, ₹6 for up to 500 units, ₹8 for up to 600 units, ₹9 for up to 800 units, ₹10 for up to 1000 units, and ₹11 for above 1000 units.
To calculate your electricity bill in Chennai, you need to check your consumer category and unit rate, multiply the units consumed by the rate per unit, and then add any fixed charges and surcharges.
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Higher tariffs for commercial users
In Chennai, electricity charges are calculated based on consumption and the applicable tariffs for the consumer's category. TANGEDCO applies different rates depending on whether the consumer is domestic, commercial, or industrial.
In 2022, TANGEDCO filed a petition for the approval of a true-up from FY17 to FY21 and the determination of the tariff for the generation and distribution of electricity for FY23 to FY27. The petition was scrutinized and reviewed, and the Commission passed the seventh order on September 9, 2022. In the last tariff order of TANGEDCO, the Commission had stated that an inflation-indexed approach should be taken into account for the computation of tariffs, considering the annual increase in the average cost of supply.
The Commission has increased the retail electricity tariff for commercial consumers. In 2023, the retail tariff for commercial consumers was increased by 2.4% to ₹8.70 (~$0.11)/kWh from ₹8.50 (~$0.10)/kWh. The cross-subsidy surcharge for HT commercial consumers has been set at ₹2.41 (~$0.029)/kWh.
In 2024, the Tamil Nadu Electricity Regulatory Commission (TNERC) announced a hike of 4.83% for domestic and all other consumers, including commercial consumers. The new tariff order took effect from July 1, 2024, and is applicable for both energy and fixed charges. The slabs for domestic consumers have been increased in the range of 20 paise to 55 paise per unit.
The tariff hike has impacted residents of Chennai, with some expressing dissatisfaction over the increased common area charges in small and medium-sized apartments.
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How to pay your Chennai electricity bill
Electricity charges in Chennai are calculated based on consumption and the applicable tariffs for your category. TANGEDCO applies different rates based on whether you are a domestic, commercial, or industrial consumer.
To calculate your Chennai electricity bill, follow these steps:
- Check the units consumed on your bill.
- Apply the rate for each unit slab based on your total consumption. The rate per unit will be based on your consumer category and usage. You can get this information on the TANGEDCO website or on your bill.
- Add any extra charges like meter rent, fixed charges, and taxes.
- Calculate the total charges: After calculating the energy consumption charges and additional fees, sum them to get your final electricity bill.
You can pay your Chennai electricity bill online through the TANGEDCO website or third-party platforms like Bajaj Finserv. Here are the steps to pay your bill through Bajaj Finserv:
- Visit the Bajaj Finserv website or click on https://www.bajajfinserv.in/.
- Go to the 'BILLS AND RECHARGES' under the 'PAYMENTS' section.
- Select a payment method from the list of available payment options such as credit card, debit card, Unified Payments Interface (UPI), net banking, e-wallets, and Insta EMI Card.
- Enter the requested payment details.
- Check the details and click on 'PAY NOW'.
To avoid additional charges and ensure uninterrupted service, customers are encouraged to pay their bills on time. TANGEDCO imposes a surcharge of 1.5% per month on the outstanding amount for late payments.
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TANGEDCO tariff revisions
The Tamil Nadu Generation and Distribution Corporation (TANGEDCO) has proposed a revision of electricity tariffs in Chennai, which, if approved, would be the first hike in eight years. TANGEDCO filed a general retail power tariff revision petition proposing to increase power tariffs by 10% to 35%.
The Tamil Nadu Electricity Regulatory Commission (TNERC) has approved a 4.83% hike in electricity charges for domestic and all other consumers, effective from July 1, 2024. This increase is based on consumer price inflation (CPI). As per the tariff order, the slabs for domestic consumers have been increased by 20 paise to 55 paise per unit. For example, the slab of 401-500 units has been increased from ₹6.15 to ₹6.45 per unit.
The tariff for other LT categories, such as public lighting, water supply, and sewage, has also been increased from ₹8.15 to ₹8.55, while fixed charges have been revised from ₹102 to ₹107. The tariff has been increased for places of worship, cottage and micro industries, private educational institutions, hostels, industries, and information technology services.
TANGEDCO applies different rates for domestic, commercial, and industrial consumers. Residential electricity charges in Chennai are calculated based on consumption and the applicable tariffs for the consumer's category. Consumers can calculate their electricity bills by checking the units consumed on their bill, applying the rate for each unit slab based on total consumption, and adding any extra charges like meter rent, fixed charges, and taxes.
To reduce electricity bills, consumers can use energy-efficient appliances and manage their consumption to stay within lower tariff slabs.
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Frequently asked questions
The electricity tariff in Chennai is calculated based on consumption and the consumer category. The consumer categories are domestic, commercial, and industrial. The tariff for public EV charging stations has been set at ₹9 (~$0.11)/kWh for FY24 from 6 am-9 am and 6 pm-10 pm. For 9 am to 4 pm, the tariff will be ₹6 (~$0.073)/kWh, and for 4 pm to 6 pm and 10 pm to 6 am, the tariff is ₹7.50 (~$0.092)/kWh.
To calculate your Chennai electricity bill, first, check the units consumed on your bill. Next, apply the rate for each unit slab based on your total consumption. Add any extra charges like meter rent, fixed charges, and taxes. Finally, sum up these amounts to get your total bill.
You can pay your Chennai electricity bill online through the TANGEDCO website or third-party platforms like Bajaj Finserv.
