Power tariffs rise by 4.8 per cent in Madhya Pradesh; lower than discoms' proposal

Bhopal, March 26 (IANS) Power is set to become costlier in Madhya Pradesh as the MP Electricity Regulatory Commission has announced a moderate increase in electricity tariffs for the financial year 2026–27.

In its tariff order issued on Thursday, the Commission approved an average hike of 4.8 per cent, significantly lower than the 10.19 per cent increase proposed by electricity distribution companies.

"It is notable that in true-up of FY 2024-25, the petitioner had claimed a revenue gap of Rs 7,815.27 crore, including supplementary power purchase bills for the period FY 2014-15 to FY 2022-23. However, the Commission, after exercising prudence check of the said claim and considering stakeholders’ observations, has admitted a revenue gap of Rs 6,963.27 crore," the order said.

The decision is being seen as a balanced approach aimed at providing relief to consumers while addressing the financial needs of power utilities.

Electricity companies had sought a substantial revision in rates citing rising costs and operational expenses.

However, after detailed examination, the Regulatory Commission decided to limit the overall tariff increase to 4.8 per cent.

This moderated hike is expected to ease the burden on households and industries across the state. In a significant relief measure, the Commission has exempted certain categories from any tariff increase.

Domestic consumers belonging to the low-income group under Category LT4 will continue to pay existing rates with no hike. Similarly, there will be no increase in tariffs for the Metro Rail category under LT9.

These decisions are likely to benefit a large section of economically weaker consumers and essential services. The new tariff order also introduces several consumer-friendly changes. Minimum charges have been abolished for many categories of consumers.

The Commission has maintained kWh-based billing for High Tension and Extra High Tension consumers. Rebates for night-time electricity consumption will continue as before.

Consumers have also received relief in metering charges.

Incentives for online bill payments and timely payment of bills remain unchanged. Similarly, incentives linked to power factor and load factor have been kept intact.

The Commission has introduced several initiatives to promote energy efficiency and green energy.

A rebate of up to 20 per cent has been announced for users of smart meters during off-peak hours. The green tariff has been reduced to encourage greater adoption of renewable energy sources.

Additionally, the additional surcharge on open access consumers has been lowered.

--IANS

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