In a major relief for households, businesses and industries across Punjab, electricity tariffs have been reduced across several consumer categories for the financial year 2026–27, bringing down power rates by up to ₹1.55 per unit for domestic consumers, up to 79 paise per unit for commercial users and up to 74 paise per unit for industrial units**.
The revised tariff order has been issued by the Punjab State Electricity Regulatory Commission (PSERC), chaired by Viswajeet Khanna**, IAS (Retd.), along with Members **Ravinder Singh Saini** (Member Technical) and **Ravi Kumar** (Member Legal). The new tariff structure will be applicable **from April 1, 2026 to March 31, 2027**.
Government Calls It a Major Pro-People Decision
Punjab Power Minister Sanjeev Arora described the tariff reduction as a major pro-people step, stating that the move will provide significant relief to households while also strengthening MSMEs and improving industrial competitiveness in the state.
He said the reduction in tariffs, along with the improved financial performance of Punjab State Power Corporation Limited (PSPCL)**, reflects the growing efficiency of the state’s power sector under the leadership of Chief Minister **Bhagwant Singh Mann.
According to the minister, PSPCL has recorded a profit of ₹2634 crore for the financial year ending March 31, 2025 and secured an A+ rating**, marking a major financial turnaround for the state-owned power utility.
Significant Relief for Domestic Consumers
Domestic consumers will continue to benefit from the Punjab Government’s flagship free electricity scheme**, under which 300 units of electricity per month (600 units per billing cycle) remain completely free.
The government claims that over 90% of households in Punjab are already benefiting from this scheme.
Even for consumers who exceed the free limit, electricity charges have been reduced.
Revised Domestic Tariff
* Up to 300 units**: ₹5.40 ➝ **₹3.85 per unit** (₹1.55 relief)
* Above 300 units**: ₹7.75 ➝ **₹7.05 per unit** (₹0.70 relief)
In addition, **fixed charges have also been reduced**:
* Load 2 kW to 7 kW**: Fixed charges reduced by **₹5 per kW**
* Load 7 kW to 20 kW**: Fixed charges reduced by **₹10 per kW**
Relief for Commercial Establishments
Commercial consumers will also see substantial reductions in their electricity bills under the revised tariff structure.
Revised Commercial Tariff
Up to 500 units**: ₹6.89 ➝ ₹6.10 per unit (₹0.79 relief)
Above 500 units**: ₹7.75 ➝ ₹7.10 per unit (₹0.65 relief)
For commercial connections with loads between 7 kW and 20 kW, fixed charges have also been reduced by ₹10 per kW per month.
Boost for Industrial Sector and MSMEs
The state government has maintained stability in power tariffs for the industrial sector while reducing fixed charges to support manufacturing and MSMEs.
Industrial Tariff Changes
* Small industry: ₹5.82 ➝ ₹5.70 per unit
* Medium industry: ₹6.25 ➝ ₹5.83 per unit
* Large industry**: ₹6.60 ➝ **₹5.90 per unit
Industrial consumers will receive relief of up to ₹0.74 per unit, while fixed charges have also been reduced:
Up to 50 kW load: Fixed charges reduced by ₹10 per kW per month
50 kW to 100 kW load: Fixed charges reduced by ₹15 per kW per month
The minister said these measures will help reduce production costs and strengthen industrial growth across Punjab.
Relief for Lawyers’ Chambers
In another important decision, electricity connections in lawyers’ chambers registered with the Bar Council of Punjab and Haryana and located within court complexes will now be billed under the domestic tariff category instead of commercial tariff, providing relief to legal professionals.
Major Consumer Relief of ₹7851 Crore
According to the tariff order, operational efficiencies in the power sector have enabled an overall consumer relief of ₹7851.91 crore, while maintaining the financial sustainability of the power sector.
Electricity Supply Cost Falls to Lowest in a Decade
A key highlight of the tariff order is the decline in the **average cost of electricity supply, which has dropped to ₹6.15 per unit**, compared to ₹7.15 per unit in the previous year, making it the **lowest average electricity cost in the last ten years.
Big Push for Electric Mobility
To promote clean mobility, the electricity tariff for **EV charging stations** has been reduced significantly.
* EV charging tariff: ₹6.28 ➝ ₹5 per unit
This places Punjab among the states with the lowest EV charging tariffs in the country, encouraging the adoption of electric vehicles.
Additional Consumer-Friendly Measures
The tariff order also introduces several new consumer-friendly initiatives:
* The limit for the Small Power category increased from 20 kW to 50 kW to improve ease of doing business.
* Special night tariff benefits for industrial consumers will continue.
* Green energy tariff has been reduced to encourage industries to adopt renewable energy.
Focus on Efficiency and Renewable Energy
The Commission has also asked PSPCL to further improve operational efficiency by:
* Reducing distribution losses by around 20%
* Lowering power purchase costs through better planning and procurement
* Increasing the integration of renewable and green energy in the power mix
These steps are expected to strengthen the financial health of PSPCL, reduce subsidy dependence and ensure reliable, affordable and sustainable electricity supply for the people of Punjab.
Reiterating the government’s commitment to public welfare and economic growth, Power Minister Sanjeev Arora said the Punjab Government will continue to focus on affordable electricity, reliable supply and a power sector that supports industry, investment and economic development in the state.
