Latest news with #TNERC
Time of India
07-07-2025
- Automotive
- Time of India
EV charging operators in Tamil Nadu face higher power bills after tariff hike
Electric vehicle (EV) charging operators across Tamil Nadu are bracing for a steep rise in operational costs following a significant revision in power tariffs by the Tamil Nadu Electricity Regulatory Commission (TNERC), effective July 1. The revised tariff structure has increased both energy charges and fixed monthly charges for EV charging stations , raising concerns among operators about the economic viability of public charging infrastructure in the state. While TNERC has retained its time-of-day (ToD) tariff model - first introduced in 2023 to incentivise off-peak charging - it has hiked electricity rates across all time slots. Under the new structure, charging during solar hours (9 a.m. to 4 p.m.) will cost ₹6.50 per kWh; during peak hours (6 a.m. - 9 a.m. and 6 p.m. -10 p.m.), the rate rises to ₹9.75 per kWh, up from ₹9.45. Night charging (10 p.m.- 6 a.m.) will cost Rs 8.10 per kWh, compared to ₹7.85 earlier. The more significant burden, however, comes from the sharp increase in fixed charges for high-tension (HT) connections - the type typically used by fast-charging stations. These monthly fixed charges have more than doubled, rising from ₹145 to ₹304 per kVA. These are levied based on sanctioned load and apply regardless of actual usage. For example, a 50 kW fast-charging station, which previously paid around Rs 1,300 in fixed charges, will now pay ₹2,750 per month - excluding electricity taxes. This is expected to strain the finances of operators already struggling with low utilisation levels. K.P. Karthikeyan, Director of the Indian Charge Point Operators Association, described the hike as a major setback. "Our average cost of electricity used to be around ₹9 to ₹9.50 per unit. With the new tariffs, it has increased by approximately ₹2.50 per unit - that's a 20 per cent jump in power cost," he said. According to him, while higher utilisation might offset some of the impact over time, most public charging stations currently operate at just 5 - 6 per cent capacity, and even well-performing sites rarely exceed 15 -16 per cent utilisation. "This is a fixed cost," he emphasised. "So, unless utilisation sees a major jump, this tariff hike effectively translates into a 20 per cent escalation in operational costs for us." The tariff revision comes at a time when the state is pushing for greater EV adoption and expanding the charging network. Operators are now urging the state government to review the policy framework and consider incentives or subsidies to keep the EV charging ecosystem viable. Without such support, many fear that the increased costs could slow down Tamil Nadu's momentum in building a robust, affordable public charging infrastructure.
Time of India
07-07-2025
- Automotive
- Time of India
EV charging in Tamil Nadu gets costlier as power tariffs rise
Chennai, Electric vehicle (EV) charging operators across Tamil Nadu are bracing for a steep rise in operational costs following a significant revision in power tariffs by the Tamil Nadu Electricity Regulatory Commission (TNERC), effective July 1. The revised tariff structure has increased both energy charges and fixed monthly charges for EV charging stations , raising concerns among operators about the economic viability of public charging infrastructure in the state. While TNERC has retained its time-of-day (ToD) tariff model -- first introduced in 2023 to incentivise off-peak charging -- it has hiked electricity rates across all time slots. Under the new structure, charging during solar hours (9 a.m. to 4 p.m.) will cost Rs 6.50 per kWh; during peak hours (6 a.m. - 9 a.m. and 6 p.m. -10 p.m.), the rate rises to Rs 9.75 per kWh, up from Rs 9.45. Night charging (10 p.m.- 6 a.m.) will cost Rs 8.10 per kWh, compared to Rs 7.85 earlier. The more significant burden, however, comes from the sharp increase in fixed charges for high-tension (HT) connections -- the type typically used by fast-charging stations. These monthly fixed charges have more than doubled, rising from Rs 145 to Rs 304 per kVA. These are levied based on sanctioned load and apply regardless of actual usage. For example, a 50 kW fast-charging station, which previously paid around Rs 1,300 in fixed charges, will now pay Rs 2,750 per month -- excluding electricity taxes. This is expected to strain the finances of operators already struggling with low utilisation levels. \ K.P. Karthikeyan, Director of the Indian Charge Point Operators Association, described the hike as a major setback. "Our average cost of electricity used to be around Rs 9 to Rs 9.50 per unit. With the new tariffs, it has increased by approximately Rs 2.50 per unit -- that's a 20 per cent jump in power cost," he said. According to him, while higher utilisation might offset some of the impact over time, most public charging stations currently operate at just 5 - 6 per cent capacity, and even well-performing sites rarely exceed 15 -16 per cent utilisation. "This is a fixed cost," he emphasised. "So, unless utilisation sees a major jump, this tariff hike effectively translates into a 20 per cent escalation in operational costs for us." The tariff revision comes at a time when the state is pushing for greater EV adoption and expanding the charging network. Operators are now urging the state government to review the policy framework and consider incentives or subsidies to keep the EV charging ecosystem viable. Without such support, many fear that the increased costs could slow down Tamil Nadu's momentum in building a robust, affordable public charging infrastructure.
New Indian Express
07-07-2025
- Automotive
- New Indian Express
EB hikes rates, EV charging stations in Tamil Nadu feel the heat
CHENNAI: Electric vehicle charging operators in Tamil Nadu are bracing for higher electricity bills as the state's power regulator raised both energy and fixed charges under a revised tariff structure, effective July 1. The Tamil Nadu Electricity Regulatory Commission (TNERC) has retained its time-of-day (ToD) model for EV charging — first introduced in 2023 — but increased rates across the board, triggering fresh concerns about the economics of public charging. Energy charges under the new structure now range from Rs 6.50 per kWh during solar hours (9am–4pm) to Rs 9.75 during peak hours (6am–9am and 6pm–10pm), up from Rs 9.45. Night charging (10 pm–6 am) is priced at `8.10, compared to Rs 7.85 earlier. More significantly, fixed charges for high-tension (HT) charging stations have more than doubled, from Rs 145 to Rs 304 per kVA per month. Unlike energy charges, these apply regardless of usage and are based on sanctioned load. For example, a 50kW fast-charging station will now pay Rs 2,750 in monthly fixed charges, up from Rs 1,300 (excluding electricity tax). 'Our average cost of power was around Rs 9 to Rs 9.50 per kWh before July. Following the tariff revision, it has gone up by Rs 2.50 per unit — a 20% increase in our power cost,' said K P Karthikeyan, director of Indian Charge Point Operators Association. 'This is a fixed cost, and while the impact could taper as utilisation improves, public charging stations typically operate at just 5-6% utilisation, and rarely exceed 10%. Even in the best-case scenario, utilisation levels may not cross 15-16%. So, at current usage levels, the hike effectively translates to a 20% cost escalation.'
The Hindu
05-07-2025
- Automotive
- The Hindu
E-vehicle charging station operators disappointed over revision in electricity fixed charges
Electric vehicle charging station operators, also known as Charge Point Operators, are disappointed with the recent electricity tariff order by the Tamil Nadu Electricity Regulatory Commission (TNERC), which has rolled back some of the reduction made in the fixed charges for the charging stations in previous orders. As per the TNERC tariff order effective from July 1, the demand charges for EV charging have been reduced by 50% for the year 2025-26. This is a roll back from the 75% reduction (fixed charges for EV charging stations under LT–VII tariff category in the above 50-112 kW slab was reduced to ₹75 per kW per month in 2023 from ₹300 per kW per month in 2022). In the recent tariff order, fixed charges for EV charging stations under LT–VII tariff category in the above 50-112 kW slab have been increased to ₹165 per kW per month when compared to the previous tariff of ₹79 per kW per month. For EV charging stations of above 112 kW under HT-V tariff category, the demand charges have been increased to ₹304 per kilovolt-amperes (kVA) per month from the existing tariff of ₹145 per kVA per month in the order. 'The recent tariff increase renders the business of operating EV Charging Stations in Tamil Nadu unviable. It will cripple the growth of charging infrastructure in the State, leading to reduced adoption of EVs. The demand charges were reduced by 75% in 2023, but that reduction has now been rolled back. This also creates uncertainty in the minds of operators,' Karthikeyan Palanisamy, director, The Indian Charging-Point Owners Association (ICPOA), said. He also pointed out that the State is yet to implement the Union Power Ministry's guidelines for a single part tariff for EV charging stations. Highest fixed charges 'Tamil Nadu has the highest fixed charges for EV charging stations. While in States such as Kerala, Delhi, and Maharashtra, the fixed charges are nil, in others like Karnataka, they are much lower,' Mr. Palaniswamy said. According to Ragavendra Ravichandran, co-founder and chief operating officer, Plugzmart (a Chennai-based EV charger manufacturer), a steep hike in fixed electricity charges has made high-capacity public charging stations financially unviable, at a time when utilisation is still ramping up. 'As an EV charger manufacturer, we see operators hesitating to deploy 60kW-240kW chargers due to recurring fixed costs. This not only disrupts our deployments, but risks slowing Tamil Nadu's EV adoption. A more rational tariff structure, such as demand-based billing or temporary fixed charge waivers, is essential to keep the ecosystem moving forward,' he added.
The Hindu
01-07-2025
- Business
- The Hindu
Tamil Nadu government to absorb the burden of the hike in electricity tariff through subsidy for domestic consumers
The Tamil Nadu Electricity Regulatory Commission (TNERC) has issued the new tariff order for the financial year 2025-26 based on the Consumer Price Inflation (CPI) index which will come into effect from Tuesday (July 1). As per the TNERC tariff order the escalation rate of the CPI has arrived at 3.16% based on the CPI index of April this year against April last year. However, the TNERC order has stated that the State government through a letter dated June 30 has issued a policy directive to compensate for the revenue loss to Tamil Nadu Power Distribution Corporation Limited (TNPDCL) through subsidies instead of passing the burden on to various categories of consumers. As per the new tariff order, the energy charges have increased from 0.15 paise to 0.35 paise for domestic consumers consuming `between 400 units to more than 1,000 units bi-monthly. There is also a minor price hike for electricity consumers for cottage and micro industries, power looms, industries and information technology services, construction activities, and electric vehicle charging stations. According to a press release issued by Transport and Electricity Minister S.S. Sivasankaran, the State government would be bearing an additional burden of ₹519.84 crore due to the new tariff revision issued for various sets of electricity consumers. In addition bearing the hike announced for domestic consumers, the State government would be bearing the additional price hike for cottage and tiny industries, power loom consumers, and industrial consumers consuming upto 50 kilowatt (KW). A total of 2.83 crore electricity consumers are in the State.
