The state of Punjab has announced massive cuts in electricity rates, which will make power bills cheaper for homes, shops, farms, and industries from April 1, 2026. This decision has been taken by the Punjab State Electricity Regulatory Commission (PSERC) just before the 2027 assembly elections.
Electricity is required for running anything and everything, from fans and lights in homes to industries and farms. With an increase in electricity rates, electricity bills will also go up, especially during summer when air conditioners and coolers operate round the clock. The Punjab government claims that it has earned a profit of Rs 2,634 crore in FY 2024-25, which is its first profit during this term, due to better management by Punjab State Power Corporation Limited (PSPCL).
It is not a flat rate of Re 1.5 per unit (the usual confusion). It is actually a reduction in the tariffs by as much as Re 1.55 per unit depending on your usage slab and home connection size:
- Small homes (up to 2 kW load):
- First 300 units: Re 1.55 per unit.
- Rest: Re 0.55 to Re 0.70 per unit.
In addition, the free 300 units per month (600 units in two months) in Punjab will remain unchanged. If you consume more than 600 units, it will be even more.
For example: Your home consumes 700 units. You were being charged extra on the first 100 units at Rs.7+ per unit. Now, with the cuts, it will be charged at a lower rate. This will result in saving as much as Rs.150+ per bill.
- Commercial (shops/offices): Reduced by as much as 50-79 paisa per unit.
- Industrial (factories): Reduced by as much as 12-74 paisa per unit.
- Farms: Rs.1.32 per unit.
- EV charging: New rate is Rs.5 per unit (reduced by Rs.1.28). It is the cheapest in India.
Subsidy for electricity for homes/farms reduces from Rs 22,200 crores to Rs 15,200 crores, and the subsidy for industries also reduces.
The PSPCL's average expenditure per unit of electricity now stands at Rs 6.15 (previously Rs 7.15), which proves they are efficient.
From April 1, 2026, for the year 2026-27. Check your PSPCL bill/electricity app for the exact rates based on the meter installed at your place.
No pre-election gimmicks, but based on actual profits, and the rates could increase if costs go up.