New Delhi, Mar 23 (PTI) DMK leader and Rajya Sabha member P Wilson on Monday raised concerns in the Upper House over the indicative tariff fixed for electricity from Kudankulam Nuclear Power Plant (KKNPP) Units 3 and 4, terming it a sharp and unjustified escalation over existing rates.

Raising the issue through a Special Mention, Wilson said the Department of Atomic Energy has communicated an indicative tariff of Rs 5.9179 per unit for the 2,000 MW capacity expected to be commissioned during 2026-27 -- a significant jump from the current range of Rs 3 to Rs 4.10 per unit applicable to Units 1 and 2.

"This marks a sharp increase and is significantly higher than prevailing competitive benchmarks, including renewable energy with storage," Wilson said.

He cited Tamil Nadu Power Distribution Corporation Ltd's assessment that the tariff structure, combined with the must-run nature of nuclear power, would impose a substantial long-term financial burden on Tamil Nadu and other southern states.

The state utility has sought a comprehensive review of the tariff, including re-examination of capital costs, financing assumptions, return on equity, depreciation methodology, and the introduction of a phased or back-loaded cost recovery mechanism, he added.

Wilson also flagged concerns arising from the recently enacted Atomic Energy (Amendment) Act, 2025, which enables private participation in the nuclear sector, warning that it could lead to further tariff escalation.

He noted that nuclear power tariffs are currently determined administratively, without independent regulatory oversight from bodies such as the Central Electricity Regulatory Commission (CERC) or State Electricity Regulatory Commissions (SERCs).

Urging immediate government intervention, Wilson called for a rationalisation of tariffs for Units 3 and 4, equitable power allocation to Tamil Nadu as the host state, and bringing nuclear power pricing under an independent and transparent regulatory framework to safeguard consumer interests. PTI LUX DRR

Nuclear power tariff regulation faces scrutiny over steep Kudankulam pricing, cost assumptions, and lack of independent oversight. Concerns were raised over the indicative tariff proposed for electricity from Kudankulam Nuclear Power Plant Units 3 and 4, as it represents a sharp escalation over the tariff currently applicable to Units 1 and 2 and may exceed prevailing competitive benchmarks. The tariff was described as likely to impose a substantial long-term burden on Tamil Nadu and other southern states, especially because nuclear power is must-run supply and pricing is presently determined administratively without independent regulatory oversight.