Finance & Tariff
TANGEDCO's electricity tariff is determined by the Tamil Nadu Electricity Regulatory Commission (TNERC). The tariff structure varies by consumer category and is revised periodically.
Calculation of Charges
Electricity charges are calculated based on the units consumed (kWh) during the bimonthly billing period. The bill comprises:
- Energy Charges — Based on units consumed at the applicable slab rate
- Fixed / Demand Charges — Based on connected load or sanctioned demand
- Fuel Cost Adjustment — Variable component reflecting fuel price changes
- Electricity Tax — As per Government of Tamil Nadu rates
LT Assessment Pattern
LT (Low Tension) consumers are assessed bimonthly. The assessment pattern includes meter reading, energy calculation based on tariff slabs, application of subsidies (if applicable), and generation of bills. Domestic consumers benefit from a telescopic slab structure where the per-unit rate increases with higher consumption.
Tariff Revision
Tariff revisions are proposed by TANGEDCO and approved by TNERC after public hearings. The revision process considers the cost of power purchase, generation costs, transmission and distribution losses, employee costs, and return on equity.
Domestic Tariff Comparison
Tamil Nadu offers one of the most affordable domestic electricity tariffs in India. The free supply scheme provides 100 units of free electricity per bimonthly billing cycle to eligible domestic consumers, benefiting millions of households.
Restructuring
TNEB was restructured on 1 November 2010 based on the following government orders:
- GO-2 (G.O. Ms No. 2) — Government order for the restructuring of TNEB into successor entities
- Transfer Scheme — Detailed scheme for transfer of assets, liabilities, and functions to TANGEDCO and TANTRANSCO
- Transfer of Employees — Scheme for absorption of TNEB employees into the three successor companies (TNEB Ltd, TANGEDCO, TANTRANSCO)
Circulars & Orders
- Cross Subsidy Surcharge — Applicable to open access consumers, determined annually by TNERC
- Reliability Charges — Charges for maintaining grid reliability and standby power arrangements
- Power Cut Instructions — Guidelines issued during power deficit periods for load shedding schedules
Solar Power Evacuation
TANGEDCO has established dedicated infrastructure for solar power evacuation including:
- Net metering for rooftop solar installations up to 1 MW
- Dedicated feeders for solar parks and large-scale solar projects
- Grid integration protocols for maintaining power quality
- Billing adjustments for bi-directional energy flow
- Technical standards for solar inverters and safety equipment
Energy Conservation Day
December 14 is observed as National Energy Conservation Day. TANGEDCO actively promotes energy conservation through:
- Awareness campaigns on energy-efficient appliances (LED bulbs, star-rated ACs, etc.)
- Distribution of energy-saving tips to consumers
- Promotion of BEE (Bureau of Energy Efficiency) star-rated equipment
- School and college awareness programs
- Recognition of industries and consumers achieving significant energy savings