The Chhattisgarh State Electricity Regulatory Commission (CSERC) has issued its tariff order for the 2026-27 financial year, approving an average electricity tariff increase of 6.23% across all consumer categories. This adjustment, effective July 1, 2026, impacts nearly 60 lakh consumers across the state. While the hike is a notable revision, it remains significantly lower than the 24% increase initially sought by the state’s power distribution company (CSPDCL). Under the new regulatory framework, the average billing rate is estimated at ₹6.71 per unit, which remains below the approved average cost of supply (ACoS) of ₹7.13 per unit.
State Power Distribution Company Managing Director Bhim Singh Kanwar defended the revision, noting that despite the hike, electricity rates in Chhattisgarh remain lower than those in neighboring states such as Madhya Pradesh, Maharashtra, and Jharkhand.
Domestic/Residential Sector Impact
Residential consumers will experience a factual rise in electricity costs ranging from 30 to 50 paise per unit. The following table details the new slab-wise rates approved for the domestic sector:
| Consumption Slab | New Rate (₹/unit) |
| 0–100 units | ₹4.40 |
| 101–200 units | ₹4.50 |
| 201–400 units | ₹6.00 |
| 401–600 units | ₹7.00 |
| Above 600 units | ₹8.80 |
The Commission emphasized that the impact on lower-income households will be mitigated by ongoing subsidy programs. Approximately 70% to 75% of domestic consumers are expected to be protected by these measures:
- M-URJA Scheme (Mukhyamantri Urja Rahat Jan Abhiyan): Consumers using up to 400 units will continue to receive a 50% “half-bill” subsidy on their consumption. MD Bhim Singh Kanwar noted that for these beneficiaries, the effective average increase will be limited to just 15–20 paise per unit.
- BPL Consumers: Roughly 14.5 lakh consumers below the poverty line (BPL) will continue to receive free power for consumption up to 30 units per month, with the state government bearing the full cost.
Agricultural Sector Adjustments
The agricultural sector will see a tariff increase of 40 paise per unit for pump connections. However, the regulatory body has implemented balancing measures to ensure farmers are not unduly burdened:
- Rebate Increase: The energy charge rebate for non-subsidized agricultural pump connections has been increased from 30% to 40%.
- Government Subsidy: The state government is expected to absorb the additional 40-paise-per-unit burden through existing subsidy frameworks, resulting in no direct out-of-pocket impact for eligible farmers.
- Operational Allowance: Farmers remain permitted to use up to 100 watts of power for lights and fans near agricultural pump installations for field-related requirements.
Industrial and Commercial (Non-Domestic) Tariffs
Non-domestic and commercial users will face rate increases ranging from 20 to 40 paise per unit. The Commission has detailed specific adjustments for High-Tension (HT) industrial categories, maintaining a sharp distinction between energy charges and demand charges:
- 220 kV and 132 kV Users: A 30 paise per unit rise in energy charges and a ₹25/kVA increase in monthly demand charges.
- 33 kV Users: A hike of 40 paise per unit in energy charges.
- 11 kV Users: A rise of 30 paise per unit in energy charges.
The Commission has also updated industrial classifications to reflect current usage profiles. Stone mines have been reclassified into the HV-3 industrial category, while iron wasteries and beneficiation plants have been categorized under HV-4.
Political Reaction and “Loot” Allegations
The 6.23% hike has triggered a sharp political backlash from the opposition Congress party. State Congress communication department chairman Sushil Anand Shukla accused the BJP-led government of “looting” consumers, alleging that this marks the fifth tariff increase since December 2023.
The Congress party has announced a state-wide protest, including the “gherao” of electricity department offices in all districts on June 17, 2026. Opposition leaders claim that over 45 lakh consumers recently received June electricity bills that were nearly three times higher than normal, citing issues with smart meter readings and billing discrepancies.
Special Concessions and Regulatory Incentives
The CSERC has retained several social and economic concessions to promote development in rural and tribal regions:
Women’s Self-Help Groups The 10% rebate on energy charges for registered women’s self-help groups engaged in industrial and commercial activities has been retained.
Electric Vehicle (EV) Infrastructure To support electric mobility, the tariff for EV charging stations is fixed at ₹7.13 per unit, matching the approved average cost of supply.
Tribal Regions (Bastar and Surguja) In the Bastar and Surguja tribal development authority regions, both government-run and private student hostels have been reclassified from the commercial category to the domestic category. Additionally, a 25% rebate for mobile towers in these regions remains in effect.
Healthcare Existing concessions for rural hospitals, nursing homes, and diagnostic centers in rural and tribal areas remain active.
Off-Peak Rebate Consumers with a sanctioned load above 10 kW will receive a rebate of 20 paise per unit for electricity consumed during off-peak hours (9:00 am to 5:00 pm) to encourage better grid load management.
Administrative and Implementation Framework
The CSERC stated that the tariff revision is necessary to recover past revenue losses and account for inflation, which is currently estimated at approximately 5%. The order also introduces critical updates to billing administration:
- Late Payment Surcharge: The surcharge has been revised from a monthly 1.5% rate to a daily rate of 0.04% per day. This ensures penalties are calculated strictly based on the actual duration of the payment delay.
- Advance Payment Rebate: The rebate for advance payments has been reduced to 0.75%. This incentive is now restricted to consumers who source 100% of their power requirements from the distribution company.
Stakeholders and the public may review the full petition and detailed tariff order on the official websites of the Commission at www.cserc.gov.in and the distribution company at www.cspdcl.co.in.
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