New electricity rates have been implemented in Madhya Pradesh with a 3.46% average increase. However, around 25 lakh middle-class domestic consumers have been benefitted, whose monthly consumption stays between 151 and 300 units, as the 151-300 unit slab has been retained.

Increase in Electricity Rates

The Madhya Pradesh Electricity Regulatory Commission has increased rates by an average of 3.46%. The electricity company proposed a flat tariff for usage above 151 units, but the commission rejected the proposal, keeping the 151-300 unit slab intact, thereby preventing an additional financial burden on these 25 lakh consumers.

Revenue Requirement and Gap

The Madhya Pradesh Power Management Company proposed a revenue requirement of ₹58,744 crore for the fiscal year 2025-26, with ₹54,637 crore expected from the current rates. To bridge this ₹4,107 crore gap, a 7.52% average rate increase was proposed. After hearing all parties, the commission approved ₹57,732.6 crore as the revenue requirement.

Changes in Rate Slabs

The electricity company had proposed consolidating four categories of domestic consumers into three categories, but the commission rejected this proposal. The 151-300 unit slab has been retained with a separate rate, ensuring that middle-class consumers don’t bear an extra financial burden.

Relief for Middle-Class Consumers

There are a total of 1.27 crore domestic consumers in Madhya Pradesh, and the electricity company provides subsidies to about 1 crore consumers who fall under the 150-unit monthly consumption limit. Additionally, around 25 lakh consumers, who consume 151 to 300 units, have been relieved due to the retention of this slab.

Savings for Consumers

Consumers in Madhya Pradesh, especially those with 151 to 300 units of monthly consumption, are expected to save extra costs due to the retention of the slab. Consumers typically save about ₹450 with the current billing structure, which charges ₹100 for the first 100 units and the regular tariff for the next 50 units.