Electricity consumers in Madhya Pradesh could be in for a shock in the coming financial year, with state-run power companies proposing a significant hike in electricity rates. The MP Power Management Company, along with the state’s three power distribution companies (discoms), has approached the Madhya Pradesh Electricity Regulatory Commission (MPERC) with a petition to increase tariffs by approximately 10 percent.

The companies have cited the need to recover financial losses as the primary reason for the proposed hike for the financial year 2026-27. This move has already sparked criticism, even though the regulatory process is still in its initial stages.

Opposition Begins Before Public Notice

The MPERC has received the tariff petition but has not yet issued a public notice inviting objections from the general public. Despite this, opposition to the proposal has already begun gaining momentum across the state. Consumer rights advocates and energy experts are questioning the rationale behind the demand for higher rates.

According to experts in the power sector, the cost of electricity supply should ideally be coming down. They point to two key factors: the increasing share of cheaper solar power generation in the state’s energy mix and the recent reduction in GST on coal transportation.

Critics argue that the benefits of these cost reductions have not been passed on to the consumers. Instead of offering relief, the power companies are seeking to burden the public further to cover their operational inefficiencies and losses.

Regulatory Process Ahead

The final decision on any rate hike rests with the State Electricity Regulatory Commission. Following the standard procedure, the commission will first examine the petition filed by the companies. Subsequently, it will issue a public notice to invite suggestions and objections from stakeholders and the general public.

After reviewing the public feedback, the commission will hold public hearings. A final decision on whether to approve the hike, and to what extent, will only be taken after this due process is completed. Until then, consumers remain apprehensive about the potential financial burden in the new year.