Electricity tariffs in India (INR)
The residential electricity price in India is 6.78 INR per kWh, and the business tariff is 10.31 INR per kWh, as published for December 2025. These retail prices include generation, transmission and distribution costs and all taxes and fees.
At the official exchange rate of 96.96 INR per US dollar that is about $0.070 per kWh for households and $0.106 for businesses. Utilities bill in Indian Rupee at official rates, so the official — not the parallel — rate is the right one for this comparison.
Household vs business tariffs in India
Businesses in India pay more per kWh than households (10.31 vs 6.78 INR). That pattern — commercial users cross-subsidising residential consumers — is common across Africa, the Middle East and South Asia, where household tariffs are kept below cost for social reasons.
Most tariffs are tiered: the first block of monthly consumption is cheapest and the price per kWh rises with usage. The figure here is the representative rate for a typical household or business, not the lowest lifeline block.
What drives electricity prices in India
Generation mix matters most. Hydro-heavy systems have very low running costs, while countries that burn imported diesel or gas pay dollar-linked fuel bills that rise whenever the currency weakens. Grid losses, unpaid bills and the cost of extending the network to rural areas are added on top.
Because tariffs are set administratively, they lag inflation and currency moves: a devaluation makes fuel imports dearer immediately, but the regulator may take a year or more to pass that through. Electricity is therefore one of the last prices in India to adjust after a currency shock.
Reading the publication period
The tariff shown was collected for December 2025. Electricity prices are revised infrequently — often once or twice a year — so a publication period several months old is normal and usually still the tariff on current bills.
Regional utilities, prepaid meters and time-of-use plans can differ from the national reference tariff. Check your bill for the block structure and any fixed monthly charges, which are not included in the per-kWh figure.