Tripura govt to bear 100% of revised electricity tariff burden

The Tripura government will bear 100% of the additional financial burden from the revised 2026-27 electricity tariff. Power Minister Ratan Lal Nath said the move aims to ease the strain on consumers. Excess amounts already paid will be adjusted.

In a major relief to electricity consumers across Tripura, the State Government has decided to bear 100 per cent of the additional financial burden arising from the revised electricity tariff for 2026-27, instead of passing the increased burden on to consumers.

CM Manik Saha's Intervention

Tripura Power Minister Ratan Lal Nath, in an exclusive interview with ANI, besides addressing the media, said the Government had taken the decision keeping in view the difficulties being faced by ordinary consumers, households, farmers, small traders, businesses and industries following implementation of the revised tariff approved by the Tripura Electricity Regulatory Commission (TERC). "The reduction of the additional electricity tariff burden was possible only because of the positive mentality of our Chief Minister, Manik Saha," Nath said, stressing that the Chief Minister had personally taken up the matter and held repeated discussions with senior officials.

The Minister said Chief Minister Manik Saha had made it clear that people of Tripura should not be subjected to an unbearable additional financial burden. According to Nath, the Chief Minister also accorded priority to the issue during his stay in Delhi and returned to the State to participate in discussions concerning the electricity tariff.

Adjustment for Consumers

The decision was announced at a press conference attended by Tripura State Electricity Corporation Limited (TSECL) Managing Director Biswajit Basu. Nath said the revised tariff came into effect from May 2026, and several consumers had already paid their electricity bills at the increased rates. He clarified that the additional amount already paid by consumers would not be lost. Instead, the excess amount would be adjusted against subsequent electricity bills over a period of three months. Accordingly, the adjustment will be reflected in electricity bills issued in September, October and November.

"We have understood the suffering of the people. We will not allow this additional burden to remain on the shoulders of the people of Tripura. The Government will bear the burden," Nath said. The Power Minister said the State Government had carefully considered concerns raised by consumers, particularly over the increase in the fixed-charge component of electricity bills. He acknowledged that the revised tariff had created anxiety among households, farmers, small shopkeepers and other sections of society.

Understanding the Tariff-Setting Process

Explaining the tariff-setting mechanism, Nath said neither TSECL nor the State Government directly determines electricity tariffs. Under the Electricity Act, 2003, tariff determination is the responsibility of the Tripura Electricity Regulatory Commission, an independent regulatory and quasi-judicial body.

According to the Minister, TSECL places its financial and expenditure requirements before TERC, following which the Commission conducts scrutiny and proceedings before issuing its tariff order. Therefore, the State Government cannot simply alter a tariff fixed by the independent regulatory authority.

Government's Rationale and Subsidy Scope

Nath also referred to the history of electricity tariff revisions in Tripura, saying that consumers had not faced a major tariff burden for several years. He said that between 2019 and 2023, the Government did not impose a major tariff burden on consumers despite increases in power procurement and supply costs. He said changing international circumstances, rising costs, regulatory requirements and legal considerations had contributed to the circumstances necessitating a tariff revision. He also referred to Supreme Court directions concerning the functioning of electricity regulatory commissions and the need to address regulatory gaps and ensure that tariffs reflect the actual cost of electricity supply.

However, the Minister stressed that the State Government had decided that the financial impact of the latest increase should not be transferred to ordinary consumers. The 100 per cent subsidy towards the additional tariff burden will benefit a large section of electricity consumers across Tripura, including domestic consumers, farmers, small and large businesses and industrial consumers. Certain categories, including railway traction, will remain outside the scope of the subsidy, as stated at the press conference.

The decision is expected to provide relief to more than 10 lakh electricity consumer families across Tripura, with the State Government taking responsibility for the additional tariff burden applicable to eligible consumers. The move comes amid growing concerns among consumers over increased electricity bills and is being projected by the State Government as a major measure aimed at protecting households and productive sectors from additional financial pressure while maintaining the existing electricity supply system. (ANI)

(Except for the headline, this story has not been edited by Asianetnews Editorial staff and is published from a syndicated feed.)