The Madhya Pradesh Electricity Regulatory Commission (MPERC) has released its latest Retail Supply Tariff Order for the financial year 2026–27, bringing changes to electricity rates across the state. The order applies to the three main distribution companies operating in the East, West, and Central regions of Madhya Pradesh.
The decision comes after a joint petition filed by the state power utilities along with M.P. Power Management Company Limited (MPPMCL). In their proposal, the companies had requested a tariff hike of 10.19 percent. They said the increase was needed to cover a projected revenue gap of around ₹6,044 crore. According to them, rising operational costs, inflation, and the need to meet government policy targets were putting pressure on their finances.
However, after reviewing the proposal and holding public hearings across the state, the Commission decided not to approve the full increase. More than 50 suggestions and objections were received from consumers and stakeholders during the process. Taking these views into account, the Commission adopted a balanced approach.
In its final order, MPERC approved a total Aggregate Revenue Requirement (ARR) of ₹61,770 crore. Instead of the proposed hike, it allowed a smaller increase of 4.80 percent in electricity tariffs. The Commission said this decision was made to reduce the financial burden on consumers while still supporting the functioning of the power utilities. It also considered past financial adjustments and actual performance of the distribution companies before finalizing the rates.
The Commission clearly stated that only “normative losses” have been considered while calculating tariffs. This means consumers will not be asked to pay for inefficiencies or excess losses of the utilities. The move is aimed at improving accountability among the DISCOMs.
One of the key areas highlighted in the order is the need to improve energy accounting and metering across the state. While urban households have achieved full metering, rural areas still face challenges. The Commission expressed concern over the slow progress in installing meters on agricultural distribution transformers. At present, only about 17 percent of such transformers are metered in Madhya Pradesh.
The issue of high technical and commercial losses was also raised. In some parts of the East and Central regions, losses are reported to be as high as 27 percent, which is much higher than the set targets. The Commission has stressed the need for better efficiency and monitoring to reduce these losses.
At the same time, the order introduces some positive measures. Industrial and high-tension consumers will continue to get rebates for increased electricity usage. This step is expected to support industries and encourage economic activity in the state. In addition, new Green Energy Tariffs have been introduced for consumers who want to use renewable power and reduce their carbon footprint.
To maintain transparency, the Commission has directed the power companies to publish the revised tariff details in newspapers at least seven days before implementation. It also warned that any change in approved rates without permission will not be valid.
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