How SERCs set domestic electricity tariffs, what slabs, fixed charges, duty and FPPAS mean, state free-power schemes, smart meters and time-of-day pricing.
An Indian household electricity bill is not set by your DISCOM alone. Each State Electricity Regulatory Commission (SERC) approves the DISCOM's revenue requirement and publishes a tariff order that fixes the energy charge per unit for each slab, the fixed or demand charge per kW of sanctioned load, and the rules for monthly or bi-monthly billing. On top of that sit the electricity duty or tax levied under state law, a monthly fuel and power purchase adjustment surcharge (FPPAS), and any subsidy the state government pays on your behalf under Section 65 of the Electricity Act, 2003.
This section explains each of those pieces separately, then compares how four large states handle them: Delhi (DERC), Tamil Nadu (TNERC), Maharashtra (MERC) and Karnataka (KERC). It also covers the free-power schemes in Delhi, Karnataka, Punjab and Tamil Nadu, the smart prepaid meter rollout under RDSS, and time-of-day tariffs under the Electricity (Rights of Consumers) Amendment Rules, 2023.
Start with how electricity tariffs are set in India. Wherever we quote a rate we name the tariff order and its date; any other number is marked as an illustrative example. Tariffs change, so always confirm against your SERC's latest order and your own bill.
Tariffs, Price Drivers and 2026 Rules
Why you pay a fixed charge per kW, how sanctioned load is decided and changed, what electricity duty and other surcharges are, with worked examples.
Tariffs, Price Drivers and 2026 Rules
What the fuel and power purchase adjustment surcharge is, why it changes every month, how it is calculated on your bill and how to check it.
Tariffs, Price Drivers and 2026 Rules
How state free-power and subsidy schemes work in Delhi, Karnataka, Punjab and Tamil Nadu, who qualifies, what happens above the limit and how to check yours.
Tariffs, Price Drivers and 2026 Rules
Who fixes your domestic electricity rate, how a SERC tariff order works, what goes into the bill and where state subsidy, duty and FPPAS come in.
Tariffs, Price Drivers and 2026 Rules
Why DISCOMs are replacing meters with smart prepaid meters under RDSS, how recharge and disconnection work, and what to check if your bill changes after the swap.
Tariffs, Price Drivers and 2026 Rules
How four large states structure domestic tariffs in 2026, which tariff order applies, what is verified and where to check rates for your DISCOM.
Tariffs, Price Drivers and 2026 Rules
What telescopic and non-telescopic slabs mean, how monthly and bi-monthly billing changes your rate, and how to work out the cost of extra units.
Tariffs, Price Drivers and 2026 Rules
How ToD tariffs work under the Electricity (Rights of Consumers) Amendment Rules 2023, who they apply to from 2024 and 2025, and how to shift load to save.
