The core clarification: this is wheeling relief, not a universal tariff cut
The most debated figure—Rs 4.04 per unit—does not represent a flat reduction in the base electricity tariff across the board. Instead, it reflects the removal of a cross-subsidy component embedded in wheeling charges, which had previously inflated the cost of electricity for certain industrial users.
As a result:
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Wheeling charges fall by approximately Rs 4.04/kWh
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Effective wheeling cost moves to around Rs 8.5–9 per unit, down from roughly Rs 12.5
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The base tariff structure otherwise remains unchanged, pending formal notifications
This distinction matters. Calling it a “tariff cut” overstates the scope. Calling it “nothing” understates the impact. The correct framing is structural cost correction via wheeling reform.
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