The Madhya Pradesh Electricity Regulatory Commission (MPERC) has approved higher tariffs for electricity consumers across all categories for the financial year (FY) 2026-27.

The tariff order has raised fixed charges and energy charges for industrial, commercial, and power-intensive consumers.

In its analysis, the Commission examined key cost components, including power purchase expenses, working capital, and interest obligations, admitting interest on working capital of about ₹1.48 billion (~$15.72 million) across distribution companies (DISCOMs). It also reviewed consumer-related financial elements, such as interest on security deposits totaling ₹4.11 billion (~$43.66 million).

Madhya Pradesh Poorv Kshetra Vidyut Vitran (East DISCOM), Madhya Pradesh Paschim Kshetra Vidyut Vitran (West DISCOM), and Madhya Pradesh Madhya Kshetra Vidyut Vitran (Central DISCOM), must issue a seven-day public notice before implementing these changes.

Industrial Consumers

The Commission has increased the fixed charges for industrial consumers for FY 2027. At the 11 kV level, the fixed energy charge increased from ₹363 (~$3.85)/kVA to ₹409 (~$4.34)/kVA. In the 33 kV category, the price has grown from ₹516 (~$5.48)/kVA to ₹641 (~$6.81)/kVA. At the 132 kV level and above, the fixed charge increased from ₹608 (~$6.45)/kVA to ₹729 (~$7.74)/kVA, and for the 220/400 KV category, the fixed charge has been raised to ₹729 (~$7.74)/kVA.

The energy charge at the 11 kV level has gone up from ₹6.50 (~$0.069)/kWh to ₹6.79 (~$0.0721)/kWh. For the 33 kV category, it has been increased from ₹6.41 (~$0.0681)/kWh to ₹6.70 (~$0.0712)/kWh. For the 132 kV category, the charge has risen from ₹6.06 (~$0.0644)/kWh to ₹6.35 (~$0.0675)/kWh, and for the 220/400 KV category from ₹5.60 (~$0.0595)/kWh to ₹5.89 (~$0.0626)/kWh.

Commercial Consumers

Fixed charges for commercial consumers have also increased.

At the 11 kV level, the fixed charge rose from ₹363 (~$3.85)/kVA to ₹373 (~$3.96)/kVA. The fixed charge at the 33 kV category grew from ₹516 (~$5.48)/kVA to ₹526 (~$5.58)/kVA. At the 132 kV level and above, the fixed charge increased from ₹608 (~$6.45)/kVA to ₹618 (~$6.56)/kVA.

The charge at the 11 kV level grew from ₹6.95 (~$0.0738)/kWh to ₹7.25 (~$0.077)/kWh, and for the 33 kV category, the charge increased from ₹6.70 (~$0.0712)/kWh to for 33 kV category to ₹7 (~$0.0744)/kWh. For the 132 kV level and above, the charge has been raised to ₹6.40 (~$0.0680)/kWh from ₹6.10 (~$0.0648)/kWh earlier.

For power-intensive industries, which include mini steel plants, sponge iron plants in the same premises, and the electrochemical industry, the energy charges have been set at ₹6.20 (~$0.065)/kWh for the 33 kV supply category and ₹5.96 (~$0.063)/kWh for 132 kV and above.

Open Access Charges

The Commission has increased the cross-subsidy surcharge for both industrial and non-industrial consumers to ₹1.49 (~$0.0158)/kWh, up from ₹1.43 (~$0.0152)/kWh. The cross-subsidy surcharge should not exceed 20% of the average cost of supply for the consumers seeking open access.

However, the additional surcharge has been reduced from ₹1.24 (~$0.0132)/kWh to ₹1.18 (~$0.0125)/kWh.

The wheeling charge has also been reduced from ₹0.19 (~$0.002)/kWh to ₹0.17 (~$0.0018)/kWh.

The standby charges will be 0.25 times the tariff applicable to the consumer availing green energy open access and will be in addition to the normal tariff of the respective consumer category.

Green Energy Charges

The Commission determined the green energy charge to be 75% of the difference between the weighted average rate of renewable power and the weighted average rate of energy charges from non-renewable sources.

It has set the green energy charge of ₹0.30 (~$0.0031)/kWh for FY 2027 for consumers availing green energy from the distribution licensee, solely to reduce their carbon footprint and to seek certification to that effect.

MPERC directed the DISCOMs to maintain, category- and sub-category-wise, accounting of the number of consumers, connected load, sales, and revenue from sales under the green energy tariff.

EV and E-Rickshaw Charging Stations

The Commission set a tariff of ₹7.44 (~$0.079)/kWh for electric vehicle (EV) charging and battery-swapping stations.

The tariff applies exclusively to EVs and electric rickshaws, as well as to charging and battery-swapping stations. However, the tariff for other consumers who use electricity to charge their own vehicles will be the same as that applicable to the relevant category of metered connection from which the vehicle is being charged.

Last month, MPERC notified the Sixth Amendment to the MPERC (Terms and Conditions for Intra-State Open Access in Madhya Pradesh) (Revision-I) Regulations, 2021, introducing detailed provisions governing the treatment of open access demand, energy adjustment, surcharge applicability, and billing mechanisms.

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