Commercial Electricity Rates in UP: Tariffs and Updates You Should Know in 2025

Commercial electricity rates in UP are a critical factor for any business, influencing operational costs and strategic financial planning. In Uttar Pradesh (UP), recent updates to these rates have brought about significant changes that commercial entities need to understand and adapt to. As we enter the fiscal year 2024-25, the Uttar Pradesh Electricity Regulatory Commission has implemented new tariffs and regulations that will redefine the landscape of energy costs for businesses across the state.

This blog aims to provide a clear explanation of these changes, breaking down the new commercial electricity rates and the reasons behind their adjustments. Whether you're running a small shop or managing a large corporation, knowing about these changes is vital for your budgeting and financial planning. Let’s find out how the commercial electricity ecosystem functions in a huge state like UP. 

Who is Responsible for Providing Commercial Electricity in UP?

In Uttar Pradesh, the responsibility for providing commercial electricity is primarily held by several state-owned distribution companies (Discoms). These companies are:

• Dakshinanchal Vidyut Vitran Nigam Ltd. (DVVNL) - Serving the southern parts of Uttar Pradesh.
• Madhyanchal Vidyut Vitran Nigam Ltd. (MVVNL) - Responsible for the central regions, including the state capital, Lucknow.
• Pashchimanchal Vidyut Vitran Nigam Ltd. (PVVNL) - Covering the western regions.
• Purvanchal Vidyut Vitran Nigam Ltd. (PuVVNL) - Operating in the eastern parts of the state.
• Kanpur Electricity Supply Company Ltd. (KESCO) - Specifically serving the Kanpur area.

These companies are regulated by the Uttar Pradesh Electricity Regulatory Commission (UPERC), which sets the tariffs and oversees the overall electricity supply standards to ensure that reliable and reasonably priced electricity is available to all sectors, including commercial electric bill rates in UP.

How to Get a New Commercial Electricity Connection in UP?

Getting a new commercial electricity connection in Uttar Pradesh (UP), India, typically involves several steps. Here's a general guide:

1. Application: Contact the local electricity distribution company in your area (e.g., UPPCL - Uttar Pradesh Power Corporation Limited) to obtain the application form for a new commercial electricity connection.
2. Documents: Prepare the necessary documents required for the application. These may include:
   1. Proof of identity (such as Aadhar card, passport, or voter ID)
   2. Proof of address (such as ration card, lease agreement, or property tax receipt)
   3. Proof of ownership or tenancy of the commercial property
   4. NOC (No Objection Certificate) from the landlord or owner
   5. Commercial establishment proof (e.g., trade licence, GST registration certificate)
3. Load Requirement: Determine the load requirement for your commercial establishment. The load requirement depends on the type of business and electrical equipment you'll be using. You may need to consult with an electrical contractor or engineer for this.
4. Fee Payment: Pay the required application fee and any other charges specified by the electricity distribution company for commercial electricity connection charges in UP.
5. Site Inspection: After submitting the application and documents, the electricity distribution company will conduct a site inspection to assess the feasibility of providing the connection. Make sure the premises are accessible for inspection on the scheduled date.
6. Approval: Once the site inspection is completed and found satisfactory, the electricity distribution company will issue an approval letter for the new connection.
7. Installation: After receiving the approval, you can proceed with the installation of the electricity metre and other necessary equipment. This may involve hiring a licensed electrician.
8. Connection: Once the installation is completed, the electricity distribution company will provide the new commercial electricity connection.
9. Metre Reading and Billing: Regular metre readings will be taken, and you will receive electricity bills based on your consumption.
10. Compliance: Ensure compliance with all relevant regulations and safety standards for electrical installations in commercial establishments.

Details of New Tariff Order in UP for FY 2025-26

The new tariff order for FY 2025-26 in Uttar Pradesh, as set by the Uttar Pradesh Electricity Regulatory Commission (UPERC), includes several key elements designed to address the revenue requirements of the distribution companies and the growing energy needs of the state. Here are the major components and changes introduced in the latest tariff order:

• Adjustment of Energy Charges

The tariff order adjusts the energy charges for different categories of consumers, including commercial entities. This adjustment reflects the cost changes in power procurement and operational efficiencies aimed at financial sustainability of the discoms.

• Introduction of Time-of-Day (ToD) Tariffs

A notable feature in the new tariff order is the introduction or adjustment of Time-of-Day tariffs, encouraging consumers to use energy during off-peak hours. This is particularly impactful for commercial users who can shift significant loads to off-peak times to reduce electricity costs.

• Fuel Surcharge Adjustments

The order allows for periodic adjustments in the form of fuel surcharges to account for fluctuations in fuel prices, which affect the cost of electricity generation. Commercial consumers will need to keep this variability in mind for budgeting.

• Category-Specific Changes

Specific rate changes have been applied to different consumer categories based on consumption patterns, demand, and cost-service studies. For commercial sectors, these changes are aimed at balancing the cost of supply with economic activity levels in the state.

• Focus on Renewable Energy

The tariff order continues to promote the adoption of renewable energy through incentives and support for solar and other renewable installations. This includes provisions for net metering and tariffs designed to encourage the commercial and industrial sectors to adopt greener energy solutions.

• Subsidies and Rebates

The order outlines the continuation and introduction of subsidies and rebates for various sectors, including special provisions for small businesses and industries to support economic activities in rural and underdeveloped regions.

• Transparency and Compliance

Increased focus on transparency in billing and metering practices, ensuring that commercial consumers have clear and accurate information about their energy usage and costs.

• Tariff Rationalisation

Efforts to rationalise tariffs to ensure that they reflect the cost of service, promoting fair pricing and efficiency in the energy sector.

For businesses operating in Uttar Pradesh, these changes necessitate a careful review of electricity bills and planning for future energy needs. Companies may need to consider energy efficiency measures or operational adjustments to align with the new tariff structures, particularly with the ToD tariffs which offer an opportunity to reduce costs. Additionally, the emphasis on renewable energy could be a cue for businesses to invest in sustainable energy sources to benefit from potential incentives and support a shift towards greener energy practices.

The latest Commercial Electricity Rates in UP

Here is a table representing the updated commercial electricity rate per unit in Uttar Pradesh:

Category	Fixed Charge (₹/kVA/month)	Energy Charge (₹/kVAh)	Notes
Commercial (11 kV supply)	₹430.00	₹8.32	For supply at 11 kV
Commercial (>11 kV supply)	₹400.00	₹8.12	For supply above 11 kV
Public Institutions (11 kV)	₹380.00	₹7.70	For supply at 11 kV
Public Institutions (>11 kV)	₹360.00	₹7.50	For supply above 11 kV

Steps to Pay Commercial Electricity Bill in UP

Paying a commercial electricity bill in Uttar Pradesh involves a few straightforward steps that can be conducted online for convenience or through traditional methods. Here’s a guide on how to proceed with each method:

Online Payment

• Visit the Official Website

Go to the website of the respective electricity distribution company based on your location (e.g., DVVNL, PVVNL, MVVNL, PuVVNL, or KESCO). Each company has its own portal for customer services.

• Login/Register

If you haven’t already, you’ll need to register for an account using your customer ID or account number, which can be found on your electricity bill. If you already have an account, simply log in.

• Navigate to the Payment Section

Once logged in, go to the payment section where you can view outstanding bills. Select the bill(s) you wish to pay.

• Enter Payment Details

Enter the amount and select your preferred mode of payment (credit card, debit card, net banking, or digital wallets like Paytm, Google Pay, etc.).

• Confirm and Pay

Review the payment details, confirm the information, and proceed to make the payment. You will receive a confirmation via email or SMS once the payment is successful.

• Download Receipt

After payment, you can download the receipt for your records, which is useful for accounting and verification purposes.

Offline Payment

• Visit the Nearest Electricity Office

You can visit the closest customer care centre or designated payment counters provided by the electricity distribution companies.

• Provide Your Bill or Account Number

Carry a copy of your electricity bill or note down your account number to provide at the counter.

• Pay via Cash, Cheque, or Card

You can pay the bill using cash, cheque, or card. Cheques should be made payable to the respective electricity distribution company.

• Collect the Receipt

Ensure you collect a receipt upon payment, which serves as proof of payment and may be required for future references.

• Mobile Apps

Many electricity distribution companies in Uttar Pradesh also offer mobile applications like NoBroker Pay where you can view and pay your bills directly from your smartphone. These apps often provide additional convenience like viewing past consumption history, filing complaints, and receiving updates about power outages.

• SMS Payments

Some utilities also enable payments via SMS, where you can send a specific message to a designated number to initiate the payment through linked mobile wallets.

By using any of these methods, commercial entities in Uttar Pradesh can efficiently manage and pay their electricity bills, ensuring continuity in their business operations without interruptions due to unpaid electricity dues.

Factors Influencing the New Commercial Electricity Connection Charges in UP

In Uttar Pradesh, the charges for a new commercial electricity connection can vary based on several factors determined by the Uttar Pradesh Power Corporation Limited (UPPCL) and its regional distribution companies. These factors are designed to cover the costs associated with extending service to new locations, ensuring that the infrastructure and service delivery are both adequate and sustainable. Here are the key factors influencing the new commercial electricity connection charges in the region:

• Load Requirements

The amount of power (in kW or kVA) required by the commercial establishment plays a significant role in determining connection charges. Higher loads require more robust infrastructure and therefore incur higher charges.

• Voltage Level

Connections at higher voltage levels (e.g., above 11 kV) may involve additional costs due to the need for more sophisticated equipment and installation processes compared to low voltage connections.

• Distance from Existing Infrastructure

If the new connection site is located far from existing electrical infrastructure, additional poles, wires, and possibly even new transformers may be needed to extend service. The further the distance, the higher the cost.

• Type of Connection

Temporary connections, such as those used for construction sites or events, may have different pricing structures compared to permanent commercial connections. Permanent connections often involve a higher upfront cost but are more cost-effective over time.

• Regulatory Charges and Duties

Government-imposed duties, taxes, and regulatory charges can also affect the total cost of obtaining a new commercial electricity connection. These may include service charges, metre installation fees, and inspection fees.

• Urban vs. Rural Location

Urban areas might have more readily available infrastructure and therefore potentially lower connection costs compared to rural areas, where infrastructure may need significant expansion.

• Demand for Infrastructure Upgrades

In cases where existing infrastructure is insufficient to handle additional load from new connections, there may be a need for system upgrades, which can significantly impact the connection charges.

• Environmental and Safety Regulations

Compliance with environmental and safety regulations can also add to the costs, especially if special measures need to be taken to minimise the impact on the environment or ensure public safety.

• Developer Contributions

Sometimes, commercial developers may be required to contribute to the infrastructure development, such as roads or utility extensions, which can also be factored into the connection charges.

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Pay Your Commercial Electricity Bills in UP with NoBroker

In Uttar Pradesh, managing your commercial electricity bills is now easier than ever with NoBroker. With competitive commercial electricity rates in UP, you can streamline your payments and focus on your business operations. Stay efficient and cost-effective with NoBroker's convenient payment solutions for your commercial electricity needs in UP.

Frequently Asked Questions