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Electricity rates reduced across categories; move seen as bid to attract consumers outside existing free power beneficiaries

Chandigarh: In a move with clear political overtones ahead of the Punjab Assembly elections due in February 2027, electricity tariffs for 2026-27 have been reduced by 50 paise to Rs 1.50 per unit across various consumer categories in the state, offering relief worth ₹7,851.91 crore to power users.

The revised tariff order, issued by the Punjab State Electricity Regulatory Commission (PSERC), will come into effect from April 1, 2026.

While the reduction provides broad-based relief to domestic, commercial and industrial consumers, the decision is also seen as an attempt by the Bhagwant Mann-led Aam Aadmi Party government to expand its political outreach to electricity consumers who currently do not benefit from the state’s flagship 300 units per month free power scheme.

Tariff Cut Targets Consumers Outside Free Power Net

Since coming to power in 2022, the AAP government has implemented a scheme providing 300 units of free electricity per month to domestic households, a benefit currently availed by around 90 per cent of Punjab’s approximately 74 lakh domestic consumers.

According to official estimates, nearly 65-70 lakh households regularly receive zero electricity bills under the scheme.

However, a significant segment of consumers — particularly higher-consumption households, commercial establishments and industrial users — remains outside the free power bracket.

The latest tariff reduction is widely seen as an effort to extend relief to this category of consumers and build political goodwill among them ahead of the 2027 elections.

Domestic, Commercial and Industrial Consumers to Benefit

Under the revised tariff structure:

• Domestic consumers will see a reduction ranging from 55 paise to ₹1.55 per unit.

• Commercial consumers will benefit from a cut between 50 paise and 79 paise per unit.

• Industrial users will get relief ranging from 12 paise to 75 paise per unit.

The tariff for electric vehicle charging has also been reduced to ₹5 per kVAh, making it the lowest EV charging tariff in the country.

Lower Cost of Power Supply

PSERC chairman Vishwajit Khanna said the average cost of power supply has fallen from ₹7.15 per unit to ₹6.15 per unit, allowing the regulator to pass on the benefit to consumers. “Cross-subsidies have been kept within the ±20 per cent limits in line with the provisions of the National Tariff Policy,” Khanna said. The tariff rationalisation will also help the state government by reducing the overall subsidy burden, even as it continues to fund the free power scheme for domestic households.

Political Messaging Ahead of 2027 Elections

The tariff reduction is being viewed in political circles as part of the AAP government’s strategy to reinforce its pro-consumer image and consolidate its electoral base before the Punjab Assembly elections scheduled for early 2027.

While the free electricity scheme has already built strong support among rural and lower-income households, the latest tariff cut aims to reach urban middle-class, commercial and industrial consumers, expanding the government’s appeal across a wider voter base.