MP sells power cheaper outside, charges locals more:Consumers pay ₹7.05 per unit while other states get ₹3.81

The Madhya Pradesh Electricity Regulatory Commission has announced a new electricity tariff for the financial year 2026–27, increasing rates by an average of 4.80%. The revision will impact nearly 1.9 crore consumers across Madhya Pradesh. Consumers pay more than other states As per the new tariff, domestic consumers in Madhya Pradesh will pay around ₹7.05 per unit. However, according to the commission’s tariff list, the same electricity is being supplied to other states at approximately ₹3.81 per unit—nearly ₹3 less per unit than what local consumers are paying. Tariff document highlights price gap The revised rates were issued on March 26. Details in the 255-page tariff order reveal that surplus electricity is being sold to other states at lower rates. The report also mentions that the state currently has a surplus of about 10,198.02 million units of electricity. Officials acknowledge public concern Commission Chairman Dr. P. G. Naj Pandey acknowledged that higher tariffs for local consumers have led to dissatisfaction. He noted that with no elections approaching, widespread protests over the hike are unlikely. Why electricity is sold cheaper outside According to Manish Sharma, a member of a consumer forum, the government signs agreements with private companies and other states to procure electricity, especially during peak summer demand. Even if the purchased electricity is not fully used, payments must still be made under these agreements. To offset losses, the government sells surplus power to other states at lower rates while recovering costs from local consumers through higher tariffs. Government can intervene Under the Electricity Act, 2003 (Section 108), the state government has the authority to direct the regulatory commission to reconsider tariff decisions if needed. The current tariff structure, however, has provided some relief to select categories, including metro and high-tension consumers, whose rates have not been increased. No hike in several other states Energy expert and retired additional chief engineer Rajendra Agrawal noted that states like Maharashtra, Uttar Pradesh, Andhra Pradesh, Bihar, Odisha, West Bengal, and Telangana have not increased electricity tariffs this time. In fact, Andhra Pradesh, Bihar, and Telangana have even reduced rates, making Madhya Pradesh one of the few states to implement a hike. Growing concern among consumers The disparity between domestic tariffs and rates offered to other states has raised concerns among consumers, especially as electricity bills continue to rise despite the state having surplus power.