CHANDIGARH: Ahead of the forthcoming 2027 Punjab assembly elections, the Punjab State Electricity Regulatory Commission (PSERC) today reduced electricity tariffs by 50 paise to Rs 1.50 per unit across all consumer categories in the state for the 2026-27 fiscal, providing overall relief to power consumers amounting to Rs 7,851.91 crore. The annual power subsidy bill is already around Rs 22,200 crore.
However, the move is expected to benefit the cash-strapped state government more than the common consumer, as it will significantly lower the massive subsidy burden the state pays for free and subsidised power. The average cost of power supply has come down from Rs 7.15 per kWh to Rs 6.15 per kWh. The reduced tariffs will also benefit the government by curtailing the burden of power subsidies.
The tariff order, announced by the PSERC, will come into effect from April 1, 2026, and will extend till March 31, 2027.
The tariff will reduce energy charges for domestic, commercial, industrial, and agricultural sectors. For domestic supply, the reduction in power tariff is from 55 paise to Rs 1.55 per unit; for commercial consumers, the difference in tariff is 50 paise to 79 paise per unit; and for industrial consumers, the relief varies from 12 paise to 75 paise per unit. The tariff for electric vehicle charging has been reduced to Rs 5 per kVAh, which is the lowest in the country.
While the domestic sector receives free power supply up to 300 units, agriculture pump sets are provided free power in the state, with the total bill amounting to over Rs 20,000 crore.
The projected revenue deficit of PSPCL is Rs 453 crore up to FY 2026-27, and a tariff hike has been sought. However, after detailed scrutiny and a prudence check, the commission calculated the total revenue requirement at Rs 48,996.28 crore for FY 2026-27. While PSPCL will bear the tariff cut, the government will benefit.