Guide

TNEB's new 200 units free scheme, explained

What changed on 10 May 2026, who benefits, and how much it actually saves.

What changed

On 10 May 2026, the Tamil Nadu government signed an order revising the domestic electricity subsidy. Eligible domestic consumers with bimonthly consumption of 500 units or less now get the first 200 units free, doubling the earlier 100-unit free quota.

Who qualifies

Bimonthly usageFree units
500 units or less200 units (new scheme)
More than 500 units100 units (existing tariff continues)

The threshold is based on your total bimonthly consumption, not a monthly average. If you cross 500 units in a two-month billing cycle even once, that cycle reverts to the old 100-unit-free structure with the steeper slab rates that apply above 500 units.

Roughly 90% of Tamil Nadu's domestic consumers fall within the 500-unit bimonthly threshold and are expected to benefit directly from this expanded free slab.

How much does it actually save?

Because TNEB billing is telescopic (see our slab guide), the saving isn't a flat amount — it depends on where your usage falls. As an example, a household using 325 units bimonthly would have paid roughly ₹822 under the old tariff; under the new scheme, that drops to roughly ₹587 — a saving of around ₹235 for that cycle. Use the calculator to see the exact figure for your own usage.

What's still pending

The government order confirmed the 200-unit-free threshold and the 500-unit eligibility cap. What it has not yet formally notified is the exact per-unit rate for the 201–500 unit band under the new scheme. Most independent estimates (including this calculator) carry over the previous slab rates for that band until TNEB/TNERC publishes the official gazette notification.

Not seeing the benefit on your bill?

Curious how your own bill compares under both tariffs? Try the calculator →