Electricity tariff reduced for domestic, commercial and industrial consumers in Punjab
Chandigarh (The Uttam Hindu): Providing major relief to households, businesses and industries across Punjab, electricity tariffs for various consumer categories have been reduced for the financial year 2026-27. Under the revised structure, electricity tariffs for domestic consumers have been reduced by up to ₹1.5 per unit, for commercial consumers by up to 79 paise per unit, and for industrial units by up to 74 paise per unit.
The new tariff order issued by the Punjab State Electricity Regulatory Commission, under the chairmanship of Vishwajeet Khanna, IAS (Retd.), in the presence of members Ravinder Singh Saini (Member Technical) and Ravi Kumar (Member Legal), will come into effect from April 1, 2026 and remain valid until March 31, 2027.
Describing the decision as a major pro-people step, Power Minister Sanjeev Arora said that the reduction in tariffs across various categories will provide significant relief to domestic consumers, strengthen MSMEs and enhance industrial competitiveness in Punjab. He further said that the EV charging tariff has been reduced to ₹5 per unit, which is among the lowest in the country. He also highlighted the financial improvements of Punjab State Power Corporation Limited (PSPCL), which has achieved an A+ rating and recorded a profit of ₹2634 crore. He added that the decision reflects the increasing efficiency of Punjab’s power sector under the able leadership of Chief Minister Bhagwant Singh Mann.
The revised tariff structure will strengthen the financial stability of the power sector while ensuring affordable electricity for consumers. Domestic consumers will receive relief of up to ₹1.5 per unit based on consumption slabs, commercial establishments will benefit from a reduction of up to 79 paise per unit, and industrial consumers will get relief of up to 74 paise per unit.
Speaking to the media, Power Minister Sanjeev Arora said, “Under the visionary leadership of Arvind Kejriwal and Chief Minister Bhagwant Singh Mann, the Punjab Government has ensured that electricity tariffs remain consumer-friendly while also supporting industrial and economic growth in the state.”
Explaining the benefits for domestic consumers, Sanjeev Arora said that the people of the state will continue to receive significant support through the Punjab Government’s free electricity initiative. He said, “Households are receiving completely free electricity through 300 units per month, which amounts to 600 units per billing cycle. More than 90 percent of households in Punjab are already benefiting from the free electricity scheme introduced by the Bhagwant Singh Mann Government.”
He further said that tariffs have also been reduced for households consuming beyond the free quota. Sanjeev Arora said, “For consumption beyond 300 units, tariffs have been reduced by ₹0.70 per unit, providing significant relief even to higher-consumption households.”
The Punjab Government has also reduced fixed charges for domestic consumers. For homes with load between 2 kW and 7 kW, fixed charges have been reduced by ₹5 per kW, while for homes with load between 7 kW and 20 kW, fixed charges have been reduced by ₹10 per kW.
The revised tariff structure will also significantly benefit commercial consumers.
Minister Sanjeev Arora said, “For commercial consumers with load up to 7 kW, tariffs have been reduced by ₹0.79 per unit for consumption up to 500 units and by ₹0.65 per unit for consumption beyond 500 units.”
PSPCL will continue focusing on improving operational efficiency and financial performance. Key targets include reducing distribution losses by about 20 percent, lowering power purchase costs through better planning and procurement, and increasing the integration of renewable and green energy in the power mix. These measures will further strengthen PSPCL’s financial health, gradually reduce dependence on subsidies, and ensure reliable, affordable and sustainable power supply for the people of Punjab.
Reiterating the government’s commitment to public welfare and economic development, Minister Sanjeev Arora said the government will continue working to provide affordable, reliable and sustainable electricity while supporting industrial development and investment in Punjab.
In another significant decision aimed at providing relief to professionals, electricity connections for lawyers’ chambers registered with the Punjab and Haryana Bar Council and located in court complexes will now fall under the domestic tariff category instead of the commercial tariff category.
The tariff order also states that operational efficiencies in the power sector have made it possible to provide total consumer relief worth ₹7851.91 crore while maintaining financial stability.
This development also reflects the financial transformation of PSPCL under the Bhagwant Mann Government. The order states that regulatory frameworks and financial discipline in the power sector have enabled PSPCL to become an efficient and profit-making power utility. For the financial year ending March 31, 2025, PSPCL achieved an A+ rating and recorded a profit of ₹2634 crore.
Another major highlight of the tariff order is the reduction in the average cost of electricity supply in Punjab. The average cost has decreased from ₹7.15 per unit last year to ₹6.15 per unit, making it the lowest average power cost in the past ten years.
The tariff order also gives a major boost to clean mobility by reducing the electricity rate for EV charging stations to ₹5 per unit, placing Punjab among the states with the lowest EV charging tariffs in the country.
Additionally, the commission has introduced several consumer-friendly measures to promote ease of doing business, including increasing the limit for the small power category from 20 kW to 50 kW, continuing special night tariff benefits for industrial consumers, and reducing green energy charges to encourage greater adoption of renewable energy by industries.
He said PSPCL will continue to focus on improving operational efficiency and financial performance. Key targets include reducing distribution losses by about 20 percent, lowering power purchase costs through better planning and procurement, and increasing the integration of renewable and green energy in the power mix. These steps will strengthen PSPCL’s financial structure, reduce subsidy dependence over time, and ensure reliable, affordable and sustainable electricity supply for the people of Punjab.
Reiterating the commitment to public welfare and economic growth, Minister Sanjeev Arora said the government will continue working to provide affordable, reliable and sustainable electricity while supporting industrial development and investment in Punjab.
Major Relief for Electricity Consumers in Punjab
Electricity Tariffs for Financial Year 2026-27
Domestic Consumers
300 units/month will remain free (benefiting more than 90% of families)
Up to 300 units: Reduced from ₹5.40 to ₹3.85 per unit (₹1.55 relief)
Above 300 units: Reduced from ₹7.75 to ₹7.05 per unit (₹0.70 relief)
Commercial Consumers
Up to 500 units: Reduced from ₹6.89 to ₹6.10 per unit (₹0.79 relief)
Above 500 units: Reduced from ₹7.75 to ₹7.10 per unit (₹0.70 relief)
Industrial Consumers
Small industry: ₹5.82 reduced to ₹5.70 per unit
Medium industry: ₹6.25 reduced to ₹5.83 per unit
Large industry: ₹6.60 reduced to ₹5.90 per unit
Relief up to ₹0.74 per unit
EV Charging Stations
Reduced from ₹6.28 to ₹5 per unit
Among the lowest EV charging tariffs in India
Other Key Benefits
₹7851 crore relief for consumers
Average electricity cost reduced to ₹6.15 per unit (lowest in 10 years)
PSPCL profit ₹2634 crore with A+ rating