GERC Keeps Power Tariffs Unchanged For 2026-27, Expands Solar And Smart Meter Incentives

The Gujarat Electricity Regulatory Commission (GERC) has released its latest tariff orders for the financial year 2026-27, setting out electricity rates and key regulatory changes for consumers across the state. The orders come after a detailed review of petitions submitted by distribution companies, including the truing up of accounts for 2024-25 and approval of revenue requirements for the coming year.

In a major relief to households and businesses, the Commission has decided not to increase the base electricity tariff. The existing rates will continue for all consumers served by state-owned discoms as well as Torrent Power Limited in Ahmedabad, Gandhinagar, and Surat. This move is expected to provide stability in electricity bills at a time when cost pressures are rising in other sectors.

Although the base tariff remains unchanged, the Commission has introduced several measures to promote efficiency and encourage the use of renewable energy. One of the key changes is an increase in incentives for consumers adopting smart metering technology. The rebate for users of prepaid smart meters has been increased from 2 percent to 3 percent on energy charges, making it more attractive for consumers to shift to advanced metering systems.

The Commission has also expanded the benefits under the Time of Use (ToU) tariff structure. Earlier, consumers received a discount of 60 paise per unit for a limited four-hour period. This has now been extended to six hours daily, from 11:00 AM to 5:00 PM. The extended duration aligns with peak solar power generation hours, allowing consumers to benefit from cheaper and cleaner electricity during the daytime.

In another important step, the eligibility for ToU discounts has been widened. Consumers in categories such as residential, general lighting, and electric vehicle charging stations can now avail of these benefits even with postpaid smart meters. Previously, these incentives were limited to prepaid users. Waterworks connections have also been included under the scheme, regardless of their load, further expanding access to discounted power.

For consumers served by Torrent Power, the Commission has introduced a new “Solar Hours Rebate” in place of the earlier night-time concession. Under this system, users will receive a rebate of 30 paise per unit for electricity consumed between 11:00 AM and 3:00 PM. The Time of Use schedule has also been revised, with peak hours now defined as 6:00 AM to 8:00 AM and 5:00 PM to 11:00 PM, reflecting current demand patterns.

The Commission has also reduced the Green Power Tariff to encourage more consumers to opt for renewable energy. The additional charge for green energy has been lowered from 0.90 per unit to 0.75 per unit for all consumers.

The order also highlights improvements in operational efficiency among distribution companies. Several utilities reported lower losses than the targets set by the Commission. For example, UGVCL recorded losses of 6.23 percent against a target of 7 percent. The Commission has now set stricter targets for 2026-27 to further improve performance and strengthen the state’s power distribution system.