Power prices in Madhya Pradesh are set to rise as the MP Electricity Regulatory Commission has approved a 4.8% average tariff increase for the financial year 2026-27. This hike is lower than the 10.19% rise proposed by electricity distribution companies. The Commission, after careful review, accepted a revenue gap of Rs 6,963.27 crore, lower than the claimed Rs 7,815.27 crore.
The decision aims to balance the needs of consumers and power utilities. Despite requests for higher rate revisions due to increased costs, the Regulatory Commission limited the overall tariff hike to 4.8%. This move is expected to provide relief to households and industries in the state. Certain consumer categories, like low-income domestic users and Metro Rail, will not face any tariff increase.
The new tariff order brings relief to economically weaker consumers and essential services. Minimum charges for many consumer categories have been eliminated, and billing remains kWh-based for High Tension and Extra High Tension consumers. The Commission has also maintained rebates for night-time electricity usage and eased metering charges for consumers.
Incentives for online bill payments and energy efficiency measures remain unchanged. The Commission has introduced initiatives to promote green energy, offering rebates for smart meter users during off-peak hours and reducing the green tariff. Moreover, the additional surcharge on open access consumers has been decreased.
