Power consumers in Chandigarh will have to pay slightly more for electricity starting November, as the Joint Electricity Regulatory Commission (JERC) has approved a nearly 1 percent hike in power tariff for the 2025–26 financial year. The new rates, which come into effect from Friday, mark the beginning of a new five-year tariff structure applicable till 2029–30.
While the increase may appear minor, it introduces a reshaped slab system and category structure that could influence monthly bills for both households and businesses.
According to officials, the average rise in tariff for the first year will be below 1 percent, with an expected 2 percent annual increase projected over the next five years. The new regime aims to maintain the financial balance of the power utility while ensuring a reliable supply across the Union Territory.
The city’s electricity supply is currently handled by Chandigarh Power Distribution Limited (CPDL), which took over operations from the administration in early 2025. The company had sought the revision citing an anticipated revenue shortfall at existing rates. After reviewing the proposal, JERC approved a modest adjustment to offset operational costs and ensure sustainability of services.
While fixed charges for domestic consumers remain the same, the per-unit rates have been revised, and a new five-slab system has been introduced for households. Earlier, there were three slabs based on consumption. Under the new format, the slabs are divided into 100-unit blocks, which means consumers using higher electricity are more likely to fall into costlier categories.
A new Below Poverty Line (BPL) category has been introduced for families consuming up to 100 units a month with a sanctioned load of 250 watts, offering relief to the most economically vulnerable households.
For non-domestic consumers, the rates will vary depending on the connection type: For two-phase users, the first 100 units will be billed at around Rs 4.55 per unit, 101–200 units at Rs 4.65, and above 200 units at Rs 5.55. While, three-phase users will be charged a uniform rate of around Rs 6.60 per unit.
The small power industrial category has been merged into a new Low Tension (LT) Industry bracket, covering loads up to 85 kW, with billing divided into three blocks — 1–500 units, 501–1,000 units, and above 1,000 units.
Officials said the increase is part of a long-term plan to make the city’s power operations financially self-sustaining. CPDL argued that without a marginal revision, it would face a deficit due to rising purchase costs, maintenance expenses, and infrastructure improvements. The Commission approved the proposal after public consultations, balancing both consumer concerns and the company’s cost realities.
A senior JERC official explained that the hike was kept “as minimal as possible” considering inflation and consumer feedback. “The aim was to avoid any sudden financial burden on residents while ensuring continued investment in grid reliability and customer service,” the official said.
For most households, the impact will be relatively minor, particularly for those with moderate electricity use. However, the expanded slab system could nudge some users into higher categories, especially during summer months when air-conditioner usage rises.
Fixed charges being unchanged means that low-consumption households will feel a smaller pinch, while high-end consumers and commercial establishments may notice a slight bump in monthly expenses.
Resident groups and trade bodies had earlier voiced opposition to any tariff revision, arguing that rising utility bills would strain middle-class families and small businesses. However, many have acknowledged that a sub-1 per cent hike is “manageable” compared to previous years.
The administration has advised consumers to review their upcoming bills closely to understand their applicable slab and unit rate under the new structure.
Officials said, as Chandigarh steps into a fresh billing cycle from tomorrow, residents can expect only a marginal rise in costs — but with a clear reminder that power pricing is entering a structured, long-term phase aimed at stability rather than short-term relief.
