Sun Mar 23 16:15:51 UTC 2025: ## Tamil Nadu’s Power Bill Soars Amidst Supply Shortages
**Chennai, March 23, 2025** – The Tamil Nadu Power Distribution Company Limited (TNPDCL) has reported a significant increase in its electricity procurement costs, reaching ₹7,953 crore in 2023-24. This is a substantial rise compared to the ₹4,170 crore initially estimated and reflects the purchase of 8,606 million units from power exchanges – significantly more than the projected 4,428 million units.
The surge in costs is attributed to increased demand and limited supply in the power exchanges, particularly during the summer months. The TNPDCL highlights that even placing bids at the maximum price during peak summer demand only yielded 30% of the requested power due to a massive imbalance between supply and demand.
The company’s reliance on the High Price Day Ahead Market (HP-DAM), introduced in February 2023 to accommodate high-cost generators, contributed to the inflated bill. The TNPDCL’s petition to the Tamil Nadu Electricity Regulatory Commission (TNERC) seeks approval for continued short-term power procurement to meet the anticipated peak demand. With summer demand projected to exceed the previous record high of 20,830 MW and 454.32 million units daily consumption, the state faces a significant challenge in ensuring a stable power supply. The situation underscores the urgent need for long-term solutions to address the growing energy demands of Tamil Nadu.
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