The Jharkhand State Electricity Regulatory Commission (JSERC), on Wednesday, raised the power tariff in the state by 6.34 per cent. Under the new rates, domestic consumers in rural areas will pay Rs 6.70 per unit, up from Rs 6.30, while urban consumers will pay Rs 6.85 per unit, up from Rs 6.65.
The revised tariff will come into effect from May 1, the member law of JSERC, Mahendra Prasad, said. While the rural tariff increased by 40 paise, the urban tariff by 20 paise. "The domestic tariff does not include the consumers availing 200 units of free electricity per month," he said. Of around 46 lakh domestic consumers, around 40 lakh consumers are availing 200 units of free electricity per household per month in the state, another official said.
Jharkhand has a total of approximately 5.7 million electricity consumers, distributed as follows Domestic: 5,080,569, Commercial: 479,881, Public lighting: 803, Irrigation: 121,675, Industrial LT: 20,550, Industrial HT: 2,798, Railways: 7
Despite the tariff hike, the state’s free electricity scheme remains in place. Launched in 2022 by the Hemant Soren-led government, the initiative initially provided 100 units of free electricity per month to domestic consumers. This cap was increased to 125 units in early 2024 and further extended to 200 units in June 2024. The scheme benefits approximately 4.1 million households, primarily in rural areas, and covers energy charges, fixed charges, and electricity duty for consumption up to 200 units per month.
While the free electricity scheme offers significant relief to low-consumption households, the recent tariff hike reflects the state’s efforts to balance consumer support with the financial sustainability of its power sector. As energy costs rise, the government faces the challenge of maintaining subsidies while ensuring adequate revenue for infrastructure and service improvements.