Tariffs, Price Drivers and 2026 Rules
Electricity tariffs compared - Delhi, Tamil Nadu, Maharashtra and Karnataka (2026)
How four large states structure domestic tariffs in 2026, which tariff order applies, what is verified and where to check rates for your DISCOM.
Domestic electricity tariffs differ sharply between Indian states because each SERC sets its own slabs, fixed charges and billing cycle, and each state government decides how much to subsidise. As of October 2026: Delhi still applies the domestic schedule continued by DERC's FY 2021-22 tariff order, with a monthly fuel surcharge and a generous state subsidy; Tamil Nadu bills every two months under TNERC Suo-motu Order No. 6 of 2025 with CPI-linked annual revisions and no domestic fixed charge; Maharashtra's MSEDCL tariff comes from MERC's multi-year order of 28 March 2025, which MSEDCL asked MERC to review; and Karnataka's ESCOM tariffs are set by KERC, with most households' bills reduced to zero or close to it by the Gruha Jyothi scheme. The table below compares structure, not a ranking of who is cheapest.
Part of how electricity tariffs are set in India.
Side-by-side structure
| Delhi | Tamil Nadu | Maharashtra (MSEDCL areas) | Karnataka | |
|---|---|---|---|---|
| Regulator | DERC | TNERC | MERC | KERC |
| Main DISCOMs | BSES Rajdhani, BSES Yamuna, Tata Power-DDL, NDMC | TNPDCL (formerly TANGEDCO) | MSEDCL; Mumbai also has BEST, Adani Electricity and Tata Power | BESCOM, MESCOM, HESCOM, GESCOM, CESC |
| Order in force (as far as we verified) | FY 2021-22 order continuing the FY 2020-21 domestic schedule | T.O. No. 6 of 2025, 30 June 2025, effective 1 July 2025 | MYT order 28 March 2025, Case No. 217 of 2024, for FY 2025-26 to FY 2029-30; review petition Case No. 75 of 2025 | KERC retail tariff order for the year; we could not open the KERC site to confirm FY 2026-27 rates |
| Billing cycle | Monthly | Bi-monthly | Monthly | Monthly |
| Domestic fixed charge | Per kW in load bands | Nil | Per connection or per kW (check schedule) | Per kW (check schedule) |
| Fuel surcharge name | PPAC / FPPAS | Per TNERC regulations | FAC | FPPCA |
| Main state scheme | 200 units free, 50% subsidy 201–400 (capped at ₹800) | Government subsidy; from May 2026 reported as 200 free units up to 500 units per cycle, 100 above | Varies by programme | Gruha Jyothi up to 200 units |
Delhi (DERC)
Energy charges: ₹3.00 (0–200 units), ₹4.50 (201–400), ₹6.50 (401–800), ₹7.00 (801–1,200) and ₹8.00 above 1,200, per unit per month. Fixed charges: ₹20 per kW up to 2 kW, ₹50 per kW above 2 kW up to 5 kW, ₹100 above 5 kW up to 15 kW, ₹200 above 15 kW up to 25 kW and ₹250 above 25 kW. These come from the DERC FY 2020-21 tariff schedule, which DERC left unchanged in its FY 2021-22 order; the FY 2021-22 schedule is still the latest one on BSES Rajdhani's tariff page in October 2026. The schedule also adds an 8% surcharge for recovery of the accumulated deficit and a 7% pension trust surcharge on the fixed and energy charges. Reports in January 2026 said DERC had not issued a tariff order since 2021 and had extended its Business Plan Regulations, 2023 to FY 2026-27, with tariff petitions to follow.
The monthly PPAC/FPPAS has been the moving part. For June 2026 DERC allowed about 17.4–18.5% for the three private DISCOMs by an order dated 10 August 2026, according to press reports. Delhi's subsidy then reduces what households pay; see the free-power scheme guide.
Example, 300 units, 2 kW (before PPAC, duty, surcharges and subsidy): 200 × 3.00 + 100 × 4.50 = ₹1,050 energy; 2 × ₹20 = ₹40 fixed; ₹1,090.
Tamil Nadu (TNERC)
TNERC's Suo-motu Order No. 6 of 2025 applied a 3.16% CPI-based increase from 1 July 2025. Commission-determined LT-IA domestic rates per unit, for two-month consumption: ₹4.95 (0–400), ₹6.65 (401–500), ₹8.80 (501–600), ₹9.95 (601–800), ₹11.05 (801–1,000) and ₹12.15 above 1,000. Fixed charge: nil. The order records that the Government of Tamil Nadu committed to exempt domestic consumers from the tariff increase for one year and compensate TNPDCL, and the tariff is "partly subsidised by the Government", so households pay less than these rates. The slabs apply telescopically at every level of consumption, including above 500 units. The order also says the tariff will be revised by the CPI formula from 1 July 2026; we did not find that revised schedule on TNPDCL's tariff page, so check before relying on the 2025 figures.
Example, 500 units in two months (Commission rate, before subsidy): 400 × 4.95 + 100 × 6.65 = ₹1,980 + ₹665 = ₹2,645.
Maharashtra (MERC, MSEDCL)
MERC issued MSEDCL's multi-year tariff order on 28 March 2025 in Case No. 217 of 2024, covering true-ups and tariffs for FY 2025-26 to FY 2029-30. MSEDCL then filed a petition to review that order and revise tariffs, registered as Case No. 75 of 2025, with written submissions dated 16 May 2025 and 4 December 2025; MERC invited public comments in December 2025 and held regional e-hearings in January and February 2026. Because we could not confirm the outcome of the review and the residential rates now in force, we do not quote MSEDCL slab rates here. MSEDCL's residential tariff has used slabs by monthly consumption, a fixed charge, a per-unit wheeling charge, the FAC and state electricity duty; check the current schedule on the MERC and MSEDCL websites.
In Mumbai, consumers of BEST, Adani Electricity Mumbai and Tata Power have separate MERC tariff orders, also dated 28 March 2025 for the multi-year period.
Karnataka (KERC)
KERC sets retail tariffs for the five ESCOMs, typically in an order issued near the start of the financial year. We could not open KERC or BESCOM websites from our location (connection refused), so we do not quote Karnataka rates. For most homes, the Gruha Jyothi scheme matters more than the tariff: domestic consumers registered under the scheme get free electricity up to an eligible number of units based on past average consumption, within a 200-unit monthly ceiling. Consumption above the eligible units is billed at the KERC tariff.
What the comparison tells you
- Rates per unit are not comparable on their own: Tamil Nadu's are for two-month slabs, Delhi's are monthly, and subsidies change the payable amount.
- The fixed charge and sanctioned load can matter more than the energy rate for small consumers in states that charge per kW.
- Surcharges have become a large share of bills in some states in 2026. See FPPAS explained.
- Your bill is the final authority on what applies to you. Use how to read your electricity bill and the electricity bill calculator, which has the Tamil Nadu slabs built in.
Frequently asked questions
Which of these states has the cheapest electricity?
It depends on your consumption, load and eligibility for subsidy. A small Delhi household that qualifies for the subsidy may pay nothing, while a large consumer in the same city pays the full slab rates plus surcharge. We do not rank states.
Why have Delhi rates stayed the same for years?
DERC has not issued a new tariff order since FY 2021-22. Cost increases have shown up instead through the PPAC/FPPAS and other surcharges. A new order would follow the DISCOMs' petitions under the extended business plan regulations.
Does the TNERC order apply to all of Tamil Nadu?
Yes, to TNPDCL consumers across the state. The domestic LT-IA category covers homes, multi-tenements, old age homes and handlooms in residences, as defined in the order.
How do I find my state's current order?
Visit your SERC's website (tariff orders section) or your DISCOM's tariff page. Look for the most recent order and any later review or amendment orders.
Sources and where to check
- TNPDCL — TNERC Suo-motu Order No. 6 of 2025 (tariff order PDF)
- Maharashtra Electricity Regulatory Commission — MYT orders and Case No. 75 of 2025
- MSEDCL (Mahadiscom) — review petition documents and residential tariff
- Delhi Electricity Regulatory Commission — tariff schedules, business plan regulations and PPAC orders
- Karnataka Electricity Regulatory Commission — ESCOM tariff orders
