Rajasthan RERC Largely Retains FY2026-27 Retail Electricity Tariff Structure — Revises Cross-Subsidy Surcharge and Open Access Charges

The RERC FY 2026-27 Decision

The Rajasthan Electricity Regulatory Commission (RERC) has finalized the retail electricity tariff for the 2026-27 fiscal year, prioritizing consumer stability by maintaining existing rates across the majority of categories. This regulatory decision directly impacts approximately 1.75 crore consumers across the state. While the core tariff structure remains steady, the Commission has sanctioned targeted revisions to industrial minimum charges, service-specific fixed costs, and the Open Access surcharge framework. These adjustments, coupled with the finalization of Green Energy Open Access procedures, signal a shift toward operational execution and grid modernization while protecting the retail consumer base from price volatility.

Retail Tariff Analysis: Categories and Fixed Charges

The Commission has maintained the existing base tariff levels for the upcoming fiscal year while approving specific Discom proposals to modify the cost structure for industrial and emerging service sectors.

• Large Industries: The base tariff is held at ₹6.50/kWh, with all existing voltage rebates remaining fully applicable.
• Medium Industry: The Commission has approved a reduction in the prevailing minimum charges for this category.
• Electric Vehicle (EV) Charging Stations: Fixed charges for EV charging infrastructure have been entirely removed to incentivize the state’s electric mobility ecosystem.
• Street Lighting: Consumers within this category are now granted a full tariff exemption.

Open Access Charges and Surcharges Framework

The RERC has introduced a revised framework for Open Access power consumers for FY 2027, aimed at reducing third-party sourcing costs and aligning with federal grid access reforms. A significant technical transition is the adoption of the General Network Access (GNA) framework as per the Cross Border Trade of Electricity (Second Amendment) Regulations, 2025, which overhauls the previous long-term and short-term access designations.

Operational Directives and Discom Mandates

In accordance with the latest regulatory benchmarks and judicial requirements, the Commission has issued the following imperative commands to state distribution companies and transmission licensees:

• Implement the undergrounding of 80 km of identified 33 kV lines within the Great Indian Bustard (GIB) priority areas by the December 2027 deadline.
• Adopt standardized maintenance benchmarks and smart meter interoperability protocols immediately to satisfy updated metering regulations.
• Enforce a prohibition on new wind turbines and solar projects exceeding 2 MW capacity within the revised GIB priority area of 14,013 sq km.
• Complete the re-routing of select 66 kV and above transmission lines through dedicated power corridors (up to 5 km width) south of the Desert National Park.
• Execute the transition to the GNA/T-GNA framework for all cross-border and inter-state electricity transactions in compliance with the Second Amendment Regulations, 2025.

FY 2024-25 True-up Summary

The Commission’s decision to maintain the current tariff structure for 1.75 crore consumers follows a comprehensive adjudication of the Discoms’ financial performance for previous periods.

• Financial Adjudication: The Commission approved the Discoms’ true-up proposals as submitted, determining that the current revenue framework is sufficient to meet adjudicated requirements without necessitating a retail tariff hike.
• Revenue Requirements: The reconciliation process confirmed that the existing rates successfully balance the Discoms’ operational costs for the true-up period with the state’s 2026-27 revenue projections.
• Regulatory Conclusion: By holding tariffs steady, the RERC has prioritized price stability while mandating that utilities focus on systemic efficiencies and the execution of infrastructure reforms to manage long-term distribution finances.