MPERC Approves 4.8% Tariff Hike for FY 2026-27; Open Access Cross-Subsidy Surcharge Revised to ₹1.49/kWh

The Madhya Pradesh Electricity Regulatory Commission (MPERC) has just released its retail supply tariff order for FY 2026-27. This is a critical update for industrial and commercial (C&I) consumers as it directly alters the cost-benefit analysis for Open Access and captive renewable energy projects in the state.

MPERC Tariff Order FY 2026-27

The Madhya Pradesh Electricity Regulatory Commission (MPERC) has issued its final Retail Supply Tariff Order for the Financial Year 2026-27. Following a joint petition by the state DISCOMs and M.P. Power Management Company Limited (MPPMCL), the Commission has approved an average tariff increase of 4.8% across various consumer categories, a significant reduction from the 10.19% hike originally sought by the utilities.

Impact on Industrial and Commercial (C&I) Tariffs:

The order introduces tiered increases in energy and fixed charges, specifically targeting high-tension (HT) consumers:

• 11 kV Category: Energy charges increased from ₹6.50/kWh to ₹6.79/kWh.
• 33 kV Category: Energy charges rose from ₹6.41/kWh to ₹6.70/kWh.
• 132 kV Category: Energy charges increased from ₹6.06/kWh to ₹6.35/kWh.
• Fixed Charges: HT industrial consumers will see an average increase of ₹10/kVA in monthly fixed charges across all voltage levels.

Revised Open Access & Cross-Subsidy Charges:

For businesses utilizing Open Access to procure renewable energy, the financial landscape has shifted:

• Cross-Subsidy Surcharge (CSS): The CSS has been hiked to ₹1.49/kWh (from ₹1.43/kWh). MPERC has maintained the cap ensuring CSS does not exceed 20% of the average cost of supply.
• Additional Surcharge (AS): In a positive move for Open Access viability, the AS has been reduced to ₹1.18/kWh (from ₹1.24/kWh).
• Wheeling Charges: These have also seen a slight reduction, now set at ₹0.17/kWh (down from ₹0.19/kWh).

Regulatory Guardrails:

Significantly, the Commission has ruled that only “normative losses” will be considered for tariff determination. This prevents DISCOMs from passing on the costs of operational inefficiencies or excessive commercial losses to the end consumer. For renewable energy developers, the hike in grid tariffs combined with the reduction in Additional Surcharges makes third-party Open Access and Group Captive models increasingly attractive in Madhya Pradesh for the coming fiscal year.