Electricity Rates in India by State 2026 Per Unit Cost, Slab Rates & DISCOMs

How India's Electricity Tariff Structure Works

India's electricity pricing follows a progressive slab system where the per-unit rate increases as consumption rises. Each state has its own tariff order set by the respective State Electricity Regulatory Commission (SERC). The tariff includes multiple components: energy charge (per kWh consumed), fixed/demand charge (based on connected load or sanctioned demand in kW), fuel adjustment charge (FAC) that varies monthly with coal/gas prices, electricity duty (state government tax, typically 5-16%), and wheeling/transmission charges. Distribution is handled by state DISCOMs (Distribution Companies) — for example, BSES and Tata Power in Delhi, MSEDCL in Maharashtra, TANGEDCO in Tamil Nadu, and WBSEDCL in West Bengal. Some states have privatized DISCOMs while others remain government-operated.

State-wise Electricity Rates — Cheapest to Most Expensive

Delhi (BSES/Tata Power): Among the cheapest due to government subsidy. 0-200 units: ₹3/kWh. 201-400: ₹4.50. 401-800: ₹6.50. 800+: ₹7.75. The Delhi government provides 200 units free per month to domestic consumers. Punjab (PSPCL): 0-100 units: ₹3.28. 101-300: ₹5.56. 301+: ₹7.18. Punjab subsidizes agricultural and domestic consumers. Gujarat (UGVCL/DGVCL/PGVCL): 0-50: ₹3.25. 51-200: ₹3.95. 201-500: ₹5.20. 500+: ₹5.65. Relatively stable rates due to strong power purchase planning. Maharashtra (MSEDCL/Adani/Tata): 0-100: ₹4.02. 101-300: ₹7.05. 301-500: ₹9.95. 500+: ₹11.69. Among the most expensive for high consumption. Mumbai consumers under Adani/Tata pay slightly different rates.

South India — Tamil Nadu, Karnataka, Andhra, Kerala, Telangana

Tamil Nadu (TANGEDCO): 0-100 units: free for below-poverty-line consumers. Standard domestic: 0-100: ₹0 (subsidized). 101-200: ₹2.50. 201-500: ₹4.60. 500+: ₹6.60. TANGEDCO provides significant cross-subsidization. Karnataka (BESCOM/MESCOM): 0-50: ₹4.10. 51-100: ₹5.55. 101-200: ₹7.10. 200+: ₹8.40. Bangalore consumers fall under BESCOM. Andhra Pradesh (APSPDCL/APNPDCL): 0-50: ₹1.90. 51-100: ₹3.45. 101-200: ₹5.20. 200+: ₹7.90. Tiered aggressively with steep jumps. Kerala (KSEB): 0-40: ₹3.15. 41-80: ₹3.95. 81-120: ₹5.00. 120-200: ₹7.00. 200+: ₹8.00. Telangana (TSSPDCL): 0-100: ₹2.50. 101-200: ₹3.50. 200+: ₹7.50. Competitive rates for base consumption.

North India — UP, Rajasthan, MP, Haryana, Bihar

Uttar Pradesh (UPPCL): 0-100: ₹3.55. 101-150: ₹4.30. 151-300: ₹5.65. 300+: ₹6.75. UP has improved supply reliability significantly but rural areas still face 4-8 hour outages. Rajasthan (JVVNL/AVVNL): 0-50: ₹4.75. 51-150: ₹6.50. 151-300: ₹7.40. 300+: ₹8.15. Among the most expensive in North India. Madhya Pradesh (MPPKVVCL): 0-100: ₹3.78. 101-200: ₹5.48. 200+: ₹7.38. Haryana (UHBVN/DHBVN): 0-50: ₹2.50. 51-100: ₹5.00. 101-250: ₹5.60. 250-500: ₹6.75. 500+: ₹7.60. Bihar (NBPDCL/SBPDCL): 0-50: ₹4.50. 51-100: ₹5.15. 101-200: ₹5.70. 200+: ₹6.50. Bihar has among the lowest per-capita consumption but rates are moderate due to high AT&C losses.

East and Northeast India

West Bengal (WBSEDCL/CESC): Kolkata under CESC: 0-25: ₹4.95. 26-60: ₹5.67. 61-100: ₹6.41. 100+: ₹8.35. Rest of WB under WBSEDCL has slightly different rates. West Bengal rates are among the highest for higher consumption due to coal dependency. Odisha (TPCODL/TPNODL/TPSODL): Rates range ₹3.50-6.80 by slab. Odisha has privatized distribution to Tata Power. Northeast states (Assam, Meghalaya, etc.): Generally ₹4-7/kWh range with varying reliability. Northeastern states benefit from hydropower but face transmission constraints.

How to Calculate Your Electricity Bill in India

Your monthly bill = Energy Charge + Fixed Charge + FAC + Electricity Duty + Other charges. The energy charge is calculated slab-wise: if your state charges ₹3 for 0-100 units and ₹5 for 101-200 units, consuming 150 units costs (100 × ₹3) + (50 × ₹5) = ₹300 + ₹250 = ₹550 in energy charges. The fixed charge (₹20-100/month) is based on your connected load. FAC (Fuel Adjustment Charge) of ₹0.10-0.80/kWh varies monthly with fuel prices. Electricity duty at 5-16% is a state tax. To minimize costs: stay within lower slabs by using energy-efficient appliances, switch to star-rated ACs (5-star BEE rated saves 30-45% vs 1-star), use LED lighting throughout, and consider rooftop solar through PM Surya Ghar for zero-cost electricity. Use our Electricity Cost Calculator to estimate your appliance running costs.

Understanding Your Electricity Bill Components

A typical Indian electricity bill contains several components beyond the energy charge. The fixed charge or demand charge ranges from ₹20-100/month for residential connections and is based on your sanctioned load in kW, not on consumption. The energy charge is the main component calculated slab-wise based on units consumed. The Fuel Adjustment Charge (FAC) or Fuel and Power Purchase Cost Adjustment (FPPCA) is a variable monthly surcharge reflecting changes in coal and gas prices used by power plants — this can add ₹0.10-0.80 per unit depending on the month. Electricity duty is a state government tax ranging from 5% in some states to 16% in others. Some states also levy a green energy cess or regulatory surcharge. For consumers on Time-of-Day (ToD) metering, rates vary by time period — typically 20% higher during peak hours (6 PM-10 PM) and 20% lower during off-peak (10 PM-6 AM). ToD metering is being expanded by many DISCOMs as smart meters roll out under the government’s Smart Meter National Programme (SMNP).

Impact of Smart Meters and Prepaid Billing

India is deploying 250 million smart meters under the Smart Meter National Programme, the world’s largest smart metering initiative. Smart meters enable real-time consumption tracking, remote meter reading (eliminating estimated billing), prepaid electricity options, and Time-of-Day (ToD) tariffs. For consumers, the transition means more accurate billing — many households on conventional meters are overcharged due to estimated readings or meter tampering. Prepaid smart meters allow consumers to buy electricity credits in advance (like mobile recharges through apps, USSD, or retail outlets), giving better budget control. States like Bihar, Assam, UP, and Madhya Pradesh are leading smart meter deployment. The key consumer benefit is visibility — when you can see real-time consumption, you naturally reduce waste. Studies show smart meter households reduce consumption by 5-12% simply through awareness. For solar prosumers, smart meters enable accurate net metering settlement, replacing the manual bi-directional meter reading process with automated export/import tracking. If your area is transitioning to smart meters, the DISCOM handles the replacement at no cost to the consumer.

Agricultural and Commercial Electricity Rates

While this guide focuses on residential rates, it’s worth understanding how other categories affect your bill through cross-subsidization. Agricultural consumers in India receive heavily subsidized or free electricity in many states (Punjab, Tamil Nadu, Telangana, Andhra Pradesh). This subsidy is funded by higher tariffs charged to commercial and industrial consumers — and partially by residential consumers. In states with high agricultural subsidy load, residential rates tend to be higher. Commercial rates range from ₹7-12/kWh — typically 40-60% higher than residential rates. Industrial rates vary from ₹5-9/kWh depending on voltage level (HT vs LT) and state. The cross-subsidy structure means reducing agricultural subsidy burden (through solar-powered agriculture) would benefit residential consumers through lower tariffs. The UDAY (Ujwal DISCOM Assurance Yojana) and subsequent reform programs aim to reduce DISCOM losses and rationalize tariff structures, which may lead to tariff changes over time.

Understanding Your Electricity Bill Components

A typical Indian electricity bill contains several components beyond the energy charge. The fixed charge or demand charge ranges from ₹20-100/month for residential connections and is based on your sanctioned load in kW, not on consumption. The energy charge is the main component calculated slab-wise based on units consumed. The Fuel Adjustment Charge (FAC) or Fuel and Power Purchase Cost Adjustment (FPPCA) is a variable monthly surcharge reflecting changes in coal and gas prices used by power plants — this can add ₹0.10-0.80 per unit depending on the month. Electricity duty is a state government tax ranging from 5% in some states to 16% in others. Some states also levy a green energy cess or regulatory surcharge. For consumers on Time-of-Day (ToD) metering, rates vary by time period — typically 20% higher during peak hours (6 PM-10 PM) and 20% lower during off-peak (10 PM-6 AM). ToD metering is being expanded by many DISCOMs as smart meters roll out under the government's Smart Meter National Programme (SMNP).

Impact of Smart Meters and Prepaid Billing

India is deploying 250 million smart meters under the Smart Meter National Programme, the world's largest smart metering initiative. Smart meters enable real-time consumption tracking, remote meter reading (eliminating estimated billing), prepaid electricity options, and Time-of-Day (ToD) tariffs. For consumers, the transition means more accurate billing — many households on conventional meters are overcharged due to estimated readings or meter tampering. Prepaid smart meters allow consumers to buy electricity credits in advance (like mobile recharges through apps, USSD, or retail outlets), giving better budget control. States like Bihar, Assam, UP, and Madhya Pradesh are leading smart meter deployment. The key consumer benefit is visibility — when you can see real-time consumption, you naturally reduce waste. Studies show smart meter households reduce consumption by 5-12% simply through awareness. For solar prosumers, smart meters enable accurate net metering settlement, replacing the manual bi-directional meter reading process with automated export/import tracking.

Agricultural and Commercial Cross-Subsidization

Agricultural consumers in India receive heavily subsidized or free electricity in many states (Punjab, Tamil Nadu, Telangana, Andhra Pradesh). This subsidy is funded by higher tariffs charged to commercial and industrial consumers — and partially by residential consumers. In states with high agricultural subsidy load, residential rates tend to be higher. Commercial rates range from ₹7-12/kWh — typically 40-60% higher than residential rates. Industrial rates vary from ₹5-9/kWh depending on voltage level (HT vs LT) and state. The cross-subsidy structure means reducing agricultural subsidy burden (through solar-powered agriculture) would benefit residential consumers through lower tariffs. The recent DISCOM reform programs aim to reduce losses and rationalize tariff structures, which may lead to tariff changes affecting all consumer categories over the next several years.

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