Punjab's electricity rates drop: Bills to be lower even for consumption beyond free units

Chandigarh (The Uttam Hindu) : The Punjab government has announced a reduction in electricity rates, providing significant relief to the state's electricity consumers. The new rates will be implemented throughout Punjab starting April 1, 2026. According to the government, electricity rates for domestic consumers have been reduced by up to ₹1.5 per unit, which will reduce the electricity bills of millions of consumers.

The Punjab government already provides 300 units of free electricity per month to domestic consumers. With a two-month billing cycle, this benefit is extended to 600 units. Now, with the new tariffs in effect, consumers consuming more than 600 units will see their electricity bills reduced compared to before.

Relief to commercial and industrial consumers too:

According to Punjab State Power Corporation Limited (PSPCL), commercial and industrial consumers will also benefit from the reduction in electricity rates. Electricity rates for commercial consumers have been reduced by 79 paise per unit. Rates for industrial consumers have been reduced by 74 paise per unit. Electricity rates for electric vehicle charging stations have been reduced to Rs 5 per unit, which is considered to be the lowest in the country.

PSPCL Turns Profitable for the First Time

The government claims that PSPCL has become a profitable company for the first time during its current term. In the 2024-25 fiscal year, the corporation has reported a profit of approximately ₹2,634 crore and has also received an A+ rating.

This is how consumers' electricity bills will be reduced:

Earlier, consumers in Punjab consuming more than 300 units of electricity had to pay the bill for the entire consumption. Now, the electricity bills of such consumers will also be reduced. Till now, PSPCL charges Rs 5.40 per unit for the first 300 units from consumers with load up to 2 kilowatts. If the consumption exceeds 300 units, the rate for the above units was Rs 7.75. Similarly, consumers consuming between 2 kilowatts and 7 kilowatts are charged Rs 5.72 per unit for the first 300 units. Whereas the rate for units above 300 was Rs 7.75 per unit. Now, the government has reduced all rates by Rs 1.50. The rates for domestic consumers with load more than 7 kilowatts have been reduced by Rs 1.50.