Water and electricity charges increased in Madhya Pradesh

From April 1, 2025, residents of Madhya Pradesh will face higher costs for essential services. The state government has announced increases in electricity and water charges, along with hikes in property tax and toll fees.

The Madhya Pradesh State Electricity Regulatory Commission has raised electricity rates by an average of 3.46%. Consumers will now pay 18 paise more per unit. This increase applies to both domestic and commercial users. The new charges include adjustments in energy charges, fuel costs, and other duties. However, the commission has removed the fixed charge, offering some relief to consumers.

While specific details on water tariff increases in Madhya Pradesh are currently limited, similar adjustments have been observed in other regions. For instance, in the UK, business water rates are set to rise by approximately 20% due to escalating wholesale costs. Although this example pertains to a different context, it highlights a broader trend of increasing water charges globally. ​

Along with the rise in electricity rates, several charges are added to the electricity bill, including:

• Energy charge

• Fuel cost

• Duty charge

These charges will also increase in proportion to the rise in electricity rates. However, the Regulatory Commission has abolished the fixed charge, which could offer some relief to consumers. The government continues to subsidize the first 100 units of electricity under the Atal Griha Jyoti Yojana, ensuring that eligible households only pay Rs 100 for their monthly consumption up to 100 units. For those using between 100 and 150 units, the government will cover the remaining costs.

Smart meter users in Madhya Pradesh will receive a 20% discount on electricity consumption between 9 AM and 5 PM. However, for the remaining 16 hours, a 10% surcharge will be applied. 

Farmers are also affected by the rise in electricity rates. For consumption between 300 and 750 units, they will face an increase of 18 paise per unit. To help mitigate this, the state government has introduced a 93% subsidy for 37 lakh farmers in the state. Farmers will now pay only 7% of the increased electricity charges, with the government covering the remaining 93%. This subsidy applies to farmers using agricultural pumps.

These hikes, covering everything from basic utilities to transportation and banking, will inevitably increase the financial burden on the residents of Madhya Pradesh. With multiple price increases across essential services, the cost of living in the state is set to rise significantly in the coming months

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