Meghalaya Electricity Commission Invites Feedback On Tariff Reforms And Cross-Subsidy Surcharge Changes

The Meghalaya State Electricity Regulatory Commission (MSERC) issued a public notice on January 15, 2026, inviting feedback from stakeholders on proposed changes to electricity tariff structures. The notice focuses on reforms related to how consumers are charged for power, industrial incentives, and the recovery of fixed costs by the state distribution company, MePDCL. Stakeholders are encouraged to submit their comments and suggestions by January 30, 2026.

One key proposal in the notice is the reintroduction of an incentive and penalty mechanism based on the load factor of consumers. The load factor measures the efficiency of electricity usage over a period. Previously, penalties and rebates based on load factor were temporarily suspended following the March 2025 Tariff Order, pending a detailed study. The Commission now proposes a system that will reward consumers with higher load factors while penalizing those with lower performance. Stakeholders are asked to provide input on the method of calculation, the amounts for incentives or penalties, and the threshold levels that should apply to commercial and industrial users.

The notice also seeks views on reforms to the Cross-Subsidy Surcharge (CSS), a charge applied to certain consumers to balance tariffs across different categories. The Commission cited legal requirements under the Electricity Act of 2003 and the National Tariff Policy of 2016, which require tariffs to reflect the actual cost of supply and suggest that surcharges should decrease over time. National policy limits CSS to a maximum of 20 percent of the applicable tariff for open-access consumers. MSERC is asking for public opinion on whether CSS should continue and, if so, what the maximum limit should be for those using open access.

Another area of focus is the recovery of fixed costs incurred by MePDCL. The utility spends substantial amounts each year on infrastructure maintenance, generation capacity charges, and transmission network costs. The Commission believes that these fixed costs should ideally be recovered through demand or connection charges, rather than per-unit tariffs. Stakeholders are invited to provide suggestions on what portion of these costs should be recovered in this way to ensure fairness and consistency across all consumer categories.

MSERC has made it clear that all interested parties, including individuals and organizations affected by these proposals, can submit written suggestions, objections, or comments. Submissions can be sent to the Secretary of the Commission at the New Administrative Building in Shillong or via email. The deadline for submitting feedback is January 30, 2026, and any comments received after this date will not be considered for review.

The notice reflects the Commission’s efforts to modernize electricity tariffs in Meghalaya, align charges with national policies, and ensure efficiency in electricity consumption while balancing the financial needs of the distribution utility. It provides an opportunity for stakeholders to actively participate in shaping the future electricity pricing framework in the state.