Understanding Electricity Rates in India (2025 Updated)
Electricity rates in India vary dramatically across states, with tariffs ranging from as low as ₹1.45 per unit in Telangana to over ₹12 per unit in Maharashtra for higher consumption slabs.
Each state electricity board sets its own tariff structure based on generation costs, transmission losses, subsidies, and regulatory policies. Understanding these rates helps you manage monthly expenses and optimize energy consumption.
2025 Key Updates
- • GESCOM unit rates revised in Karnataka
- • AP current bill calculation simplified
- • New Time-of-Day pricing in major cities
- • Increased renewable energy surcharge
- • Digital billing mandatory in urban areas
- • Net metering rates updated for solar
- • Cross-subsidy surcharge increased
- • Fuel and power purchase cost adjustments
State-wise Electricity Tariff Comparison (2025)
| State/UT | Electricity Board | Rate Range (₹/unit) | Fixed Charges | Website |
|---|---|---|---|---|
| Andhra Pradesh | APEPDCL/APSPDCL | ₹2.90-6.50 | ₹50-150 | Visit Site |
| Assam | APDCL | ₹3.60-6.20 | ₹40-120 | Visit Site |
| Bihar | BSPHCL | ₹3.00-5.50 | ₹35-100 | Visit Site |
| Delhi | BSES/TPDDL | ₹3.00-6.50 | ₹20-140 | Visit Site |
| Gujarat | UGVCL/PGVCL | ₹3.10-5.90 | ₹45-130 | Visit Site |
| Haryana | UHBVN/DHBVN | ₹3.50-6.00 | ₹60-140 | Visit Site |
| Karnataka | BESCOM/GESCOM/Others | ₹3.75-7.25 | ₹70-180 | Visit Site |
| Kerala | KSEB | ₹3.00-6.60 | ₹50-135 | Visit Site |
| Maharashtra | MSEDCL | ₹3.67-9.65 | ₹75-200 | Visit Site |
| Odisha | CESU/NESCO | ₹3.20-5.60 | ₹40-115 | Visit Site |
| Punjab | PSPCL | ₹3.78-5.94 | ₹55-125 | Visit Site |
| Rajasthan | JVVNL/AVVNL | ₹3.40-6.30 | ₹65-145 | Visit Site |
| Tamil Nadu | TNEB | ₹2.25-4.00 | ₹30-120 | Visit Site |
| Telangana | TSSPDCL | ₹1.45-7.20 | ₹25-160 | Visit Site |
| Uttar Pradesh | UPPCL | ₹3.35-6.00 | ₹70-150 | Visit Site |
| West Bengal | WBSEDCL | ₹3.51-6.71 | ₹60-140 | Visit Site |
📊 Tariff Analysis Insights
Lowest Tariff States
- • Telangana: ₹1.45 starting rate (heavy subsidy)
- • Tamil Nadu: ₹2.25 starting rate (free units scheme)
- • Andhra Pradesh: ₹2.90 starting rate (welfare policy)
- • Bihar: ₹3.00 starting rate (central subsidy)
Highest Tariff States
- • Maharashtra: Up to ₹12.04 commercial rates
- • Karnataka: Up to ₹8.95 for commercial consumers
- • Delhi: ₹8.50 peak commercial rates
- • Kerala: ₹7.90 upper slab commercial rates
Detailed Tariff Breakdown by State
Karnataka - GESCOM Unit Rates & BESCOM Tariff (Gulbarga Electricity)
Domestic Tariff Structure
Lifeline tariff for low-income households
Basic household consumption
Medium household consumption
High consumption penalty rate
Commercial Tariff Structure
Small shops and establishments
Hotels, restaurants, AC usage
Large offices and complexes
Additional Charges & Information
Fixed Charges: ₹70-180 per month based on sanctioned load
Taxes: Electricity duty 6-9%, FPPCA charges applicable
Gulbarga Region: GESCOM serves Gulbarga region with same tariff structure
Time of Day: Peak hours 6PM-10PM (+20% surcharge)
How Electricity Tariffs are Calculated in India
Fixed Charges vs Unit Charges
Fixed Charges
Monthly fee regardless of consumption, based on sanctioned load:
- • Up to 2kW: ₹30-70 per month
- • 2-5kW: ₹70-150 per month
- • Above 5kW: ₹150-300 per month
Unit Charges (Energy Charges)
Progressive slab-based rates per kWh consumed:
- • Lower slabs: ₹2-4 per unit (subsidized)
- • Middle slabs: ₹4-6 per unit (cost recovery)
- • Upper slabs: ₹6-12 per unit (cross-subsidy)
Additional Components
Taxes & Surcharges
- • Electricity Duty: 5-15% of bill amount
- • Fuel & Power Purchase Cost Adjustment (FPPCA)
- • Renewable Energy Development Surcharge
- • Cross Subsidy Surcharge (for open access)
Time-based Charges
- • Peak Hours: 6PM-10PM (+15-25% surcharge)
- • Normal Hours: 6AM-6PM (standard rates)
- • Off-Peak Hours: 10PM-6AM (10-20% discount)
- • Seasonal variations in some states
Recent Updates for 2025
Tariff Revisions
- • Average 8-12% increase across states
- • Higher cross-subsidy burden on commercial
- • New renewable energy surcharge
- • Simplified slab structures in some states
Digital Initiatives
- • Mandatory smart metering in cities
- • Online bill payment incentives
- • Real-time consumption tracking
- • Mobile app-based billing
Policy Changes
- • Net metering for rooftop solar
- • Green tariff options introduced
- • Time-of-day pricing expansion
- • Energy efficiency rebates
Frequently Asked Questions About Electricity Rates
What are GESCOM unit rates in Karnataka?
GESCOM (Gulbarga Electricity Supply Company) unit rates in Karnataka range from ₹3.75 to ₹7.25 per unit for residential consumers, depending on consumption slabs. The gulbarga electricity tariff follows the same structure as other regions in Karnataka.
GESCOM Domestic Rates:
- • 0-30 units: ₹3.75/unit
- • 31-100 units: ₹4.85/unit
- • 101-200 units: ₹6.15/unit
- • Above 200 units: ₹7.25/unit
How to calculate AP current bill (Andhra Pradesh)?
To calculate your AP current bill, follow these steps:
- 1. Find your monthly consumption in units (kWh) from your meter reading
- 2. Apply APEPDCL/APSPDCL slab rates progressively (₹2.90-6.50 per unit)
- 3. Add fixed charges based on your sanctioned load (₹50-150)
- 4. Add electricity duty and other taxes (typically 8-12% of bill amount)
Formula: AP Bill = (Units × Progressive Slab Rates) + Fixed Charges + (Subtotal × Tax Rate)
Why do electricity tariffs vary between states?
Electricity tariffs vary between states due to multiple factors:
Generation Factors
- • Different energy mix (coal, hydro, renewable)
- • Fuel costs and availability
- • Power purchase agreements
- • Generation capacity and efficiency
Policy Factors
- • State subsidies and welfare schemes
- • Cross-subsidization policies
- • Regulatory commission decisions
- • Agricultural and domestic support
What's the difference between domestic and commercial electricity rates?
Domestic Rates
- • Subsidized by government
- • Progressive slab system
- • Lower rates: ₹2-9 per unit
- • Social welfare protection
- • No time restrictions
Commercial Rates
- • 40-60% higher than domestic
- • Support residential cross-subsidy
- • Higher rates: ₹4-12 per unit
- • Additional demand charges
- • Peak hour penalties
How is electricity bill calculated in slab system?
The slab system calculates bills progressively, where consumption is divided into slabs with increasing rates:
Example: Delhi Slab System
Calculation: Total bill = Sum of (slab consumption × slab rate) for each applicable slab + fixed charges + taxes
Practical Bill Calculation Examples
Delhi Household Example
Scenario: 450 units monthly consumption
Average rate: ₹4.35 per unit | Marginal rate: ₹5.50 per unit
Karnataka Small Shop Example
Scenario: 180 units commercial consumption
Effective rate: ₹8.59 per unit (including all charges)
💡 Bill Optimization Tips
Understand Your Slabs
- • Know your current slab rates
- • Calculate marginal cost of next unit
- • Plan consumption to avoid higher slabs
- • Monitor monthly usage patterns
Timing Strategies
- • Avoid peak hours (6-10 PM)
- • Use appliances during off-peak
- • Leverage time-of-day pricing
- • Schedule high-consumption activities
Technology Solutions
- • Install energy-efficient appliances
- • Use smart meters for real-time tracking
- • Consider rooftop solar installation
- • Implement home automation systems
Ready to Calculate Your Exact Electricity Bill?
Use our advanced calculator to get accurate bill estimates based on your state's current tariff rates.
