Chhattisgarh revises electricity tariffs; domestic users hit

The Chhattisgarh government has revised electricity tariffs for the financial year 2025–26, with new rates in effect from July 1. While the changes include targeted rebates for rural and tribal regions, domestic and non-domestic users will see an increase in their monthly electricity bills.

According to The Times of India, a 10 per cent rebate will now be offered to mobile towers located in Left-Wing Extremism (LWE)-affected areas to encourage infrastructure development in those regions. Hospitals, diagnostic centres, and nursing homes operating in rural zones, as well as in the areas under the Bastar and South Area Tribal Development Authority and the Surguja and North Area Development Authority, will continue to receive a 5 per cent discount on energy charges.

However, domestic electricity tariffs have been raised by Rs 0.10 to Rs 0.20 per unit, affecting around 60 lakh households. Non-domestic users will see a Rs 0.25 per unit hike, while agricultural pump tariffs will increase by Rs 0.50 per unit. The state government has announced it will absorb the additional cost for agricultural users to shield farmers from financial pressure.

Bhimsingh Kanwar, Managing Director of the Chhattisgarh Power Distribution Company, stated that the integrated tariff has increased by a modest 1.89 per cent compared to last year. He noted that the cost of supplying electricity in the state is Rs 7.02 per unit, while the minimum domestic tariff remains at Rs 4.10 per unit.

The Congress party has criticised the tariff hike, accusing the state government of failing to ensure a reliable supply while increasing the consumer burden. Sushil Anand Shukla, head of the party’s communication department, claimed that power tariffs have increased by 19.31 per cent over the past 18 months. He also opposed the installation of smart meters, alleging that they have led to inflated bills, and pointed to the previous Congress administration’s ‘half electricity bill’ scheme, which reportedly benefited 44 lakh households.

The tariff revision comes at a time when Chhattisgarh faces structural energy challenges. According to the Central Electricity Authority’s Resource Adequacy Plan for Chhattisgarh (2024–25 to 2034–35), the state is projected to face an energy deficit ranging from 77 million to 539 million units over the next decade, even with current and planned capacity additions. Demand in the state remains largely flat from April to September, with distinct day and night peaks from October to March.

The CEA report also highlights the state’s shortfall in meeting Renewable Purchase Obligations and points to the need for contracting additional capacity to ensure long-term adequacy. To meet demand reliably by 2034–35, Chhattisgarh would require significant new solar and wind capacity, along with energy storage systems. The state is also expected to rely on short-term open access during high-demand months like February and March over the next few years. Meanwhile, declining plant load factors for coal-based units are likely to make space for higher renewable energy absorption.