October 31, 2025
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Power tariff to rise from tomorrow; free electricity plan scrapped, hike to continue for five years

Chandigarh October 31, 2025 : Around 250,000 consumers in the city are set to face an increase in electricity prices. Chandigarh Power Distribution Limited (CPDL) has approved a proposal to raise electricity rates. Despite opposition from political parties and other organizations, electricity will now be available at higher rates starting November 1.

The domestic fixed charge has not been increased yet, but it will rise over the next two years. Currently, the fixed charge is ₹30 per kilowatt, which will increase to ₹40 by 2027–28. The Joint Electricity Regulatory Commission (JERC) has finalized proposals to increase power tariffs across various domestic and commercial categories for the next five financial years (2025–26 to 2029–30). The commission has approved a tariff hike of less than 1% for the remainder of FY 2025–26 and an average annual increase of around 2% during the five-year control period.

CPDL had submitted a five-year report for the period 2025–26 to 2029–30, based on which the demand for a tariff hike was made. However, after taking charge of the UT Electricity Department on February 1, CPDL also revised the slab system, dividing it into five categories. Each slab now includes 100 units, whereas earlier there were three slabs — 0–150 units, 150–400 units, and above 400 units.

The new rates will be as follows:

Domestic consumers:

  • 1 to 100 units – ₹2.80 per unit
  • 101 to 200 units – ₹3.75 per unit
  • 201 to 300 units – ₹4.80 per unit
  • 301 to 400 units – ₹5.00 per unit
  • Above 400 units – ₹5.40 per unit

Non-domestic (commercial) consumers:

  • 0 to 100 units – ₹4.55 per unit
  • 101 to 200 units – ₹4.65 per unit
  • Above 200 units – ₹5.55 per unit

For those with three-phase connections, the rate has been set at ₹6.60 per unit.

Proposal for 200 units of free electricity rejected

Several consumers had demanded that Chandigarh should also provide up to 200 units of free electricity, similar to the Delhi and Punjab models. CPDL clarified that granting electricity subsidies falls under the jurisdiction of the state government, not the commission. As per Section 65 of the Electricity Act, 2003, only the state government has the authority to decide on subsidies for any category of consumers.

Summary:
Electricity in Chandigarh will become costlier starting tomorrow as the administration cancels the free power scheme. The revised tariff structure includes gradual annual hikes over the next five years.

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