TNPDCL issues SOP to roll out Rs 2 per unit power subsidy for eateries amid LPG shortage

CHENNAI: The Tamil Nadu Power Distribution Corporation Ltd (TNPDCL) has released a detailed standard operating procedure (SOP) to provide a Rs 2 per unit electricity subsidy for tea shops, eateries, cloud kitchens, restaurants, and hotels. This initiative follows the state government’s recent announcement offering relief due to the LPG shortage caused by the West Asia crisis.

In a circular from TNPDCL’s finance branch, all superintendent engineers and assistant executive engineers have been instructed to inspect high-voltage (HT) commercial connections. They must ensure that these connections are only used for food-related activities like restaurants, hotels, and canteens so that eligible businesses can receive the subsidy.

The circular also states that HT consumers in non-commercial categories, such as IT parks with canteens or food courts, will be eligible for the subsidy only if a separate meter is installed for food-related use. For low-voltage (LT) consumers, billing software has been updated to classify commercial services into specific categories like tea shops, restaurants, small hotels, bakeries, and more. Meter readers are now required to correctly record this information during readings.

Currently, HT consumers pay Rs 9.40 per unit, while LT consumers pay between Rs 6.45 and Rs 10.45 per unit depending on usage. The state government announced on March 14 that businesses switching to electric or induction stoves due to LPG shortages would receive a subsidy for increased power usage. Under this scheme, the government will cover Rs 2 per unit of excess consumption, with consumers paying the remaining amount.

Excess consumption is calculated by comparing current usage with last year’s figures. For new connections without prior data, the previous bill will serve as a reference. A senior TNPDCL official emphasized that the circular was issued to confirm updates to the billing software and ensure no eligible business is overlooked. Since this measure is an emergency response based on government directions, TNPDCL plans to seek formal approval for the subsidy from the Tamil Nadu Electricity Regulatory Commission (TNERC) later.