- May 17, 2026
CEA Proposes Higher Power Tariff Fixed Charges: What It Means For Consumers
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CEA may raise fixed monthly power charges to aid discoms hit by rooftop solar and captive power, risking higher bills for low use consumers amid fuel price hikes and Iran US war
Electricity Bills May Get Costlier Amid Growing Shift To Captive Power
The Central Electricity Authority (CEA) has proposed increasing fixed monthly electricity charges, a move that could raise power bills even for consumers with lower electricity usage, according to a report by Times of India.
The move is expected to increase electricity bills for consumers with lower usage.
According to TOI, the proposal is intended to help power distribution companies (discoms) offset rising financial pressures as a growing number of consumers adopt rooftop solar systems and industries turn to captive power generation.
A higher fixed electricity charge would force customers to pay more every month regardless of how much electricity they actually use.
The proposal, set to be placed before the Forum of Regulators, notes that power distribution companies (discoms) currently recover a significant portion of their fixed costs through per-unit electricity tariffs instead of stable monthly charges, leaving revenues exposed whenever electricity consumption falls.
The report stated that costs related to transmission infrastructure, employee salaries, network maintenance and payments to power generators make up nearly 38 to 56 per cent of a utility’s total expenditure. In contrast, fixed monthly charges currently account for only around 9 to 20 per cent of overall revenue.
The CEA further noted that industries and affluent households using rooftop solar systems, open-access arrangements and captive power plants still rely on the electricity grid for backup supply, even as they purchase lower volumes of power from discoms, affecting utility revenues.
During the past one-week, prices of petrol and diesel have been hiked by Rs 3 per litre and CNG rates have surged two times in Delhi NCR. Consumers are facing shocks from multiple sides amid the ongoing Iran-US war.
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