Tariff Orders for FY 2026–27 for PSPCL & PSTCL

Tariff Orders for FY 2026–27 for PSPCL & PSTCL

The Punjab State Electricity Regulatory Commission chaired by Sh. Viswajeet Khanna, IAS (Retd.) and Members Er. Ravinder Singh Saini (Member/Technical) and Sh. Ravi Kumar (Member/Legal) have issued the Tariff Orders containing tariff/charges for FY 2026–27 vide Orders dated 06.03.2026.

In the Orders, the Commission has determined the true-up of FY 2024-25, ARR for the 4th MYT Control Period (FY 2026-27 to FY 2028-29) and Determination of Tariff/charges applicable for FY 2026-27 in respect of Punjab State Power Corporation Limited (PSPCL) and Punjab State Transmission Corporation Limited (PSTCL).

The Commission has decided to make the new tariff/charges applicable from 1st April 2026 up to 31st March 2027.

In accordance with Section 61 of the Electricity Act, 2003, the Commission has established a regulatory framework based on cost-reflective tariffs, timely issuance of orders within the 120-day statutory mandate and strict non-creation of regulatory assets. This framework, supported by the automatic pass-through of FPPAS, Resource Adequacy Framework, and approval of substantial CAPEX for system augmentation and loss reduction, has helped maintain financial discipline.

This has enabled PSPCL to achieve an A+ rating and a profit of ₹2634 crore for the year ending 31 March 2025.

The Commission has also been ranked the best-performing State power regulator in India in the National Regulatory Performance Ranking 2025, conducted by the Power Foundation of India in collaboration with REC Limited under the aegis of the Ministry of Power, Government of India.

PSPCL in its revised submission to the ARR petition had projected a revenue deficit of ₹453 crore up to FY 2026-27 and requested an increase in tariff. However, after detailed prudence checks, the Commission determined the required revenue for the year at ₹48,996.28 crore.

A surplus of ₹7,851.91 crore was available from the true-up of FY 2024-25 and revenue projections for FY 2026-27 with existing tariffs totalling ₹52,791.41 crore.

Thus, the net ARR required to be recovered from tariff for FY 2026-27 after adjusting the surplus is ₹44,939.50 crore, and the new tariff has been designed accordingly.

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Salient Features

1. The new tariff will be applicable from 01.04.2026 to 31.03.2027.
2. While maintaining the financial viability of PSPCL, the Commission has prioritised consumer interest by reducing tariffs for all consumer categories, giving an overall relief of ₹7,851.91 crore.
3. Cross-subsidies have been kept within ±20% limits in line with the National Tariff Policy.
4. Average Cost of Supply (ACOS) for FY 2026-27 has been estimated at ₹6.15/kWh against ₹7.15/kWh in FY 2025-26.
5. The limit for Small Power category has been increased from up to 20 kW to up to 50 kW to promote Ease of Doing Business.
6. EV charging tariff has been reduced to ₹5.00/kVAh, among the lowest in the country, to accelerate electric vehicle adoption.
7. Lawyers’ chambers registered with the Bar Council of Punjab & Haryana in court complexes will now be billed under Domestic Supply tariff.
8. Registered Bed & Breakfast/Home Stay units using electricity strictly for residential purposes will also fall under Domestic Supply tariff.
9. Voltage rebate for supply at 400 kV increased to 40 paise/kWh from 35 paise/kWh.
10. In mixed load industry, PIU loads up to 100 kVA will continue to remain outside the PIU category.
11. Special Night Tariff continued with:

• 50% fixed charges
• Energy charge ₹5.50/kVAh
• Applicable between 10:00 PM and 06:00 AM

Consumers can also use electricity between 06:00 AM and 10:00 AM at normal tariff.

12. Measures are being implemented to merge tariffs of Power Intensive Units and General Industry in FY 2026-27.
13. Time of Day (TOD) tariff period remains 16 June to 15 October with surcharge ₹2.0/kVAh.
14. Green Energy Tariff reduced to ₹0.15/kWh from ₹0.39/kWh to encourage renewable energy use.
15. Detailed tariff orders are available on the PSERC website: www.pserc.punjab.gov.in

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Key Tariff Changes (FY 2026-27)

Domestic Supply (Up to 2 kW)

• Fixed Charge: ₹50/kW
• Energy Charge: ₹3.85/kWh (0–300 units)
• Above 300 units: ₹7.05/kWh

Domestic Supply (2–7 kW)

• Fixed Charge: ₹70/kW
• Energy Charge: ₹4.25/kWh (0–300 units)

Domestic Supply (7–20 kW)

• Fixed Charge: ₹100/kW
• Energy Charge: ₹5.00/kWh

Electric Vehicle Charging

• ₹5.00/kVAh

Small Power Industry

• Fixed Charge: ₹100/kVA
• Energy Charge: ₹5.70/kVAh

Medium Supply

• Fixed Charge: ₹130/kVA
• Energy Charge: ₹5.83/kVAh

Large Industry (Above 100 kVA)

• Energy Charges: ₹5.90–₹6.00/kVAh

Bulk Supply

• LT: ₹6.46/kVAh
• HT: ₹6.18/kVAh

Railway Traction

• ₹6.57/kVAh

Public Lighting

• ₹6.79/kWh

Agriculture Pumpset

• ₹5.38/kWh or ₹395 per BHP/month

• Fixed charges are levied on 80% of sanctioned load/contract demand.
• Energy charges are applicable along with FPPAS, Voltage surcharge/rebate and TOD tariff as per tariff conditions.
• Detailed tariff schedules are provided in Annexure II of the Tariff Order, to be read with General Conditions of Tariff (Annexure I).