TVK govt faces backlash over record electricity prices of up to ₹37 per unit
Tamil Nadu’s power procurement strategy has come under intense scrutiny after the Tamil Nadu Power Distribution Corporation Limited (TNPDCL) agreed to purchase electricity from the open market at prices reaching ₹37 per unit, reportedly the highest rate in the state’s history.
Opposition parties, including the Dravida Munnetra Kazhagam (DMK), have questioned the Tamilaga Vettri Kazhagam (TVK) government’s decision to cancel tenders finalised by the previous administration at rates ranging from ₹11 to ₹20 per unit. They have also raised concerns about whether the government anticipated the seasonal rise in electricity demand and began procurement early enough to secure more affordable rates.
TNPDCL has invited bids to purchase 4,500 MW of electricity from the open market to bridge the gap between demand and supply. Arrangements have been finalised for 1,500 MW of round-the-clock electricity between October 12 and 31 at rates ranging from ₹31.99 to ₹34.49 per unit. Another 2,000 MW is being procured to meet peak evening demand between 6 pm and midnight, at prices between ₹33.37 and ₹37 per unit.
Andhra Pradesh has emerged as a key point of comparison in the controversy. Its Power Coordination Committee reportedly finalised bids on September 9 for 150 MW of electricity during the same period at rates between ₹16 and ₹20 per unit. Tamil Nadu, by contrast, invited bids only in the week before the October supply period.
Electricity Minister C.T.R. Nirmal Kumar and TNPDCL officials have attributed the steep prices to the limited availability of conventional coal-based generation and the need to rely on more expensive gas-based power plants.
The minister cited several factors contributing to the supply shortage, including nearly 4,000 MW of reduced availability from central generating stations due to scheduled annual maintenance, lower wind power generation and unexpectedly high consumption.
According to Kumar, electricity demand has risen by approximately 30%, increasing from 16,800 MW during the corresponding period last year to 21,700 MW this October.
However, opposition leaders remain unconvinced and have demanded greater transparency. They want the government to release tender documents, comparative bid details, electricity supply schedules and information on the availability of power from different sources.
The dispute has intensified scrutiny of the state’s advance planning, procurement decisions and efforts to control electricity costs during periods of peak demand.