You pay more while surplus power is sold at lower rates

Bhopal: While your electricity will cost 4.8% more from April 1, it has now come to light that the same power, when surplus, is sold elsewhere at a much cheaper rate. Power distribution companies in Madhya Pradesh currently provide electricity to consumers at about Rs 7–8 per unit. However, the surplus power is offloaded in the open market at nearly half the price — about Rs 3.81 per unit — highlighting a sharp pricing mismatch that is raising the burden on consumers.It is also learnt that a significant portion of electricity is not fully used within the state and is sold outside at lower rates.According to the latest tariff order, around 10,198 million units (MU) of surplus electricity is projected to be sold in the open market during 2026-27. In addition, about 899 MU will be supplied to industrial areas, taking the total planned surplus sale to nearly 11,100 MU. This is despite the fact that the overall surplus power available in the system is estimated to be over 20,000 MU, indicating that a large volume of electricity remains underutilised.Experts said this shows gaps in power planning and demand assessment. "Power is being purchased at a high cost, but when unused, it has to be sold at cheaper rates. This difference ultimately adds to the financial burden, which is then passed on to consumers," Rajendra Agarwal, a retired additional chief engineer of MP Genco, told TOI.He suggested the authorities review expensive power purchase agreements to reduce surplus. "The surplus power is becoming a liability for consumers," he said.The state govt said nearly 1.4 crore of the total 1.9 crore consumers are protected through subsidies, especially those using up to 150 units a month.But experts pointed out that subsidies are also funded through public money. "Even if the government pays (for subsidies), it is ultimately the consumer who bears the cost," Agarwal said.With the tariffs up 4.8% and over 11,000 MU of power set to be sold at lower rates, the situation highlights a key concern — consumers may end up paying more not just for electricity they use, but also for inefficiencies in the system.