Tamil Nadu to Roll Out Monthly Electricity Billing in 2025

Tamil Nadu’s Transport and Electricity Minister S.S. Sivasankar has announced that the state will soon implement a monthly electricity bill payment system, fulfilling a key promise made by the Dravida Munnetra Kazhagam (DMK) during the 2021 Assembly elections. The transition, which depends on the completion of smart meter installations across the state, is set to make electricity payments more manageable for millions of households. This development addresses long-standing demands from consumers and opposition parties for a more flexible billing cycle, marking a significant step toward modernizing Tamil Nadu’s power distribution system.

Fulfilling a Key Election Promise

In its 2021 election manifesto, the DMK pledged to replace the existing bimonthly electricity billing system with a monthly one, a move aimed at easing the financial burden on consumers. The current system, which requires households to pay for two months of electricity consumption at once, often results in high bills that can strain budgets, particularly for low- and middle-income families. The promise of monthly billing was widely welcomed as a consumer-friendly reform, but its implementation has been delayed since the DMK assumed power in 2021.

Opposition parties, notably the All India Anna Dravida Munnetra Kazhagam (AIADMK), have repeatedly criticized the delay, urging the government to expedite the transition. The announcement by Minister Sivasankar during a press conference at the Chennai Secretariat, alongside Finance Minister Thangam Thennarasu and Higher Education Minister Govi. Chezhiyan, signals the government’s commitment to addressing these concerns and delivering on its electoral pledge.

Smart Meters: The Backbone of the New System

The shift to monthly billing is closely tied to the Tamil Nadu Generation and Distribution Corporation’s (TANGEDCO) ambitious plan to install smart meters across the state. Speaking to reporters, Minister Sivasankar explained, “The monthly electricity bill collection system will be implemented as soon as TANGEDCO completes the installation of smart meters in homes.” He emphasized that this change would make payments more convenient for the public, aligning with the government’s vision for a modernized power sector.

Smart meters are advanced devices that enable real-time monitoring of electricity usage, ensuring accurate and automated billing. Tamil Nadu aims to install 3 crore smart meters, with the first phase targeting 1 crore domestic connections. Pilot projects in areas like T. Nagar, Chennai, have already seen the installation of over 80,000 smart meters using radio frequency technology. These meters allow consumers to track their usage via mobile apps, offering greater transparency and control over electricity expenses.

Consumer Benefits of Monthly Billing

The transition to monthly billing is expected to benefit Tamil Nadu’s 2.83 crore electricity consumers by making payments more manageable. Under the current bimonthly system, households often face large bills that can be difficult to pay in one go, particularly for those with limited incomes. Monthly billing will allow consumers to spread their payments over smaller, more frequent intervals, reducing financial strain and improving budgeting.

Additionally, monthly billing will enable consumers to monitor their electricity usage more closely, encouraging energy conservation. With smart meters, households can access real-time data on their consumption, helping them identify high-usage appliances and adopt energy-efficient practices. Early adopters in pilot areas have reported savings of up to 20% on their bills by adjusting their usage based on smart meter insights.

Progress and Challenges in Smart Meter Rollout

The installation of smart meters is a massive undertaking, with Tamil Nadu aiming to cover all domestic and commercial connections in the coming years. The state has issued tenders to procure 3 crore smart meters, with contracts expected to be finalized soon. The first phase focuses on urban centers like Chennai, Coimbatore, and Madurai, where infrastructure and connectivity are conducive to smart meter deployment. Rural areas will follow in subsequent phases, ensuring equitable access to the new billing system.

However, the rollout has faced challenges, including supply chain delays and the high cost of smart meters, estimated at ₹5,000 to ₹7,000 per unit. The government has assured consumers that they will not bear these costs, as funding is being provided through central schemes like the Revamped Distribution Sector Scheme (RDSS). TANGEDCO is also addressing concerns about data privacy and meter reliability, ensuring that the technology meets international standards for security and performance.

Responding to Public and Political Pressure

The delay in implementing monthly billing has been a point of contention, with opposition parties accusing the DMK of failing to deliver on its promises. Public frustration has grown, particularly among low-income households struggling with large bimonthly bills. Minister Sivasankar’s announcement is a direct response to these concerns, signaling the government’s commitment to prioritizing consumer welfare.

The government is also working to address logistical challenges, such as training TANGEDCO staff to manage smart meter operations and ensuring seamless integration with existing billing systems. Public awareness campaigns are being planned to educate consumers about the benefits of monthly billing and how to use smart meter features, such as mobile apps for real-time monitoring.

Transforming Tamil Nadu’s Power Sector

The shift to monthly billing is part of a broader effort to modernize Tamil Nadu’s power sector. Smart meters will reduce billing errors, curb electricity theft, and improve TANGEDCO’s financial health by streamlining revenue collection. The state government has also committed to maintaining current tariff rates for domestic consumers, ensuring that the transition does not lead to additional costs for households.

Furthermore, the initiative supports Tamil Nadu’s renewable energy goals, such as increasing solar power adoption. Smart meters enable time-of-use tariffs, which encourage consumers to shift high-energy activities to off-peak hours, reducing strain on the grid and promoting sustainable energy practices. The government’s investment in smart infrastructure reflects its vision for a digitally empowered, consumer-centric power sector.

What Lies Ahead for Consumers

As Tamil Nadu moves toward monthly billing, consumers can expect a more user-friendly experience. Smart meters will offer both postpaid and prepaid billing options, giving households flexibility to choose the payment method that suits them best. The TANGEDCO mobile app will provide real-time updates on consumption, bill amounts, and payment status, empowering consumers to manage their electricity expenses effectively.

The government is committed to ensuring a smooth transition, with plans to roll out the new system in phases to avoid disruptions. Consumers in urban areas are likely to experience monthly billing first, with rural areas following as the smart meter rollout progresses. TANGEDCO will conduct extensive outreach to inform residents about the changes and provide support during the transition period.