Madhya Pradesh industrial electricity tariff: HV-3.1 and LV-4.

Who this page covers

This page covers the three state DISCOMs of Madhya Pradesh: MP Paschim Kshetra Vidyut Vitaran Company (West, Indore), MP Madhya Kshetra Vidyut Vitaran Company (Central, Bhopal) and MP Poorv Kshetra Vidyut Vitaran Company (East, Jabalpur). They share one tariff, set by the Madhya Pradesh Electricity Regulatory Commission (MPERC).

• HV-3.1 industrial: every HT industry, including mines other than coal mines and cold storages, with the offices, canteen, colony and other loads inside the premises.
• HV-3.4 power-intensive industries: mini steel plants, sponge iron, electro-chemical, electro-thermal and ferro-alloy units.
• HV-3.2 non-industrial (hotels, hospitals, offices, institutions) and HV-3.3 shopping malls follow the same terms with their own rates.
• LV-4 LT industrial: workshops and factories on LT supply, including flour mills, dal mills, cold storages, ginning, power looms and ice factories. Demand-based billing is mandatory.

The rates below apply for FY 2026-27 under MPERC’s retail supply tariff order of 26 March 2026 (Petition 140 of 2025). The Pithampur SEZ, supplied by MPIDC, has a separate order and is not covered here. As of 3 November 2026, it is the latest MPERC tariff order we have found.

HT industrial rates for FY 2026-27

Energy is billed in kWh, at two rates: one for units up to 50% load factor and a lower one for the units above it.

HV-3.4 power-intensive industries pay ₹632 per kVA and ₹6.20 per kWh at 33 kV, or ₹771 per kVA and ₹5.96 per kWh at 132 kV and above, with one energy rate. An existing 11 kV connection above 300 kVA that stays at 11 kV at its own request pays 3% extra on the demand above 300 kVA and the matching units; the same applies at 2% on 33 kV above 10,000 kVA and 1% on 132 kV above 50,000 kVA.

How the 50% load factor line works

Load factor here is the month’s units × 100 ÷ (hours in the billing month × demand × power factor), where demand is the higher of maximum demand and contract demand, and power factor is the higher of 0.90 and the actual. Scheduled outage hours are left out, and the result is rounded down to a whole number.

For a 400 kVA plant at 0.96 power factor in a 30-day month, 50% load factor is 1,38,240 units. Those units pay the higher rate and every unit after them the lower one. A higher maximum demand moves the line up, so a demand spike also pushes more units onto the higher energy rate.

LT industrial rates (LV-4)

Up to 15 kW (20 HP) of contract demand, the fixed and energy charges are 30% lower, in any month the maximum demand stays within 15 kW. LV-4 has no minimum charge. Units above 25% load factor earn a load factor concession: 12 paise per unit from 25% to 30%, 24 paise from 30% to 40% and 36 paise above 40%. Industries in notified industrial areas and parks on urban supply pay the urban rate.

ToD hours: peak, solar and night

ToD changes the energy charge only, not the fixed charge.

A unit moved from the peak to solar hours saves 40% of the energy rate: about ₹3.10 at ₹7.75. The TOD tariff guide covers which loads can move.

Billing demand and excess demand

• Maximum demand is four times the largest kVAh recorded in any 15 consecutive minutes of the month.
• Billing demand is the higher of maximum demand and 90% of contract demand, rounded to a whole number. A 400 kVA contract pays for at least 360 kVA every month. The same 90% rule applies on LV-4.
• Up to 120% of contract demand, the demand is billed at the normal fixed rate. There is no extra charge between 100% and 120%.
• From 120% to 130%, the demand above 120% pays 1.3 times the fixed rate. Above 130%, the demand above 130% pays double. Energy has no extra charge.

A 400 kVA contract that reaches 540 kVA pays the normal rate on 480 kVA, 1.3 times on 40 kVA and double on 20 kVA. The contract demand guide shows how to size it.

Power factor penalty and incentive

Both are a percentage of the month’s energy charge, worked on the energy actually consumed.

• HT penalty: at 89% or below, 1% for each 1% below 90%. At 84% or below, 5% plus 2% for each 1% below 85%. The penalty is capped at 35%, and below 70% the DISCOM can disconnect.
• HT incentive: 1% at 96%, 2% at 97%, 3% at 98%, 5% at 99% and 7% at 100%.
• LT surcharge (LV-4): below 80%, 1% for each 1% down to 75%, then 1.25% for each 1% below that, up to 10%.
• LT incentive: 0.5% for each 1% from 86% to 95% (5% at 95%), then 1% for each 1% up to 10% at 100%.

On the worked bill below, a power factor of 0.99 instead of 0.96 saves ₹39,751 a month, and 0.85 instead of 0.96 costs ₹56,707 more. See how to improve power factor.

Minimum consumption and rebates

• Minimum consumption (HT): 1,200 units per kVA of contract demand a year at 11 and 33 kV (600 up to 100 kVA), and 1,800 at 132 kV and above (1,200 for rolling mills). Each month one twelfth is billed if the actual units are lower, and it is adjusted once the year’s units catch up. Rural-feeder connections get 20% less minimum and 5% off the fixed charge.
• Incremental consumption rebate: ₹1 per unit for an existing HT industry on units above the same month of the fifth year before.
• New HT connection rebate: ₹1 per unit for up to ten years, in place of the incremental rebate.
• Moving from LT to HV-3 in FY 2026-27: ₹1 per unit. Leaving a captive plant for DISCOM supply: ₹2 per unit; leaving open access: ₹1 per unit.

Each rebate has its own conditions in the order; check them with your DISCOM. The load factor calculator works out your load factor.

Worked example: a 400 kVA plant at 33 kV

An illustrative HV-3.1 plant at 33 kV with a contract demand of 400 kVA, in a November month. Its maximum demand is 380 kVA and it uses 1,50,000 kWh: 45,000 in peak hours, 65,000 in solar hours and 40,000 at night. Its power factor is 0.96.

Illustrative figures from the MPERC order for FY 2026-27. ToD is worked here on the month’s average energy rate; your DISCOM may apply it slab by slab and round in its own way, so check against your bill. Paid 7 days early, the bill is about ₹3,323 less. Work out your own HV-3.1 or LV-4 bill with the electricity bill calculator.

In a slow month, the same plant pays for at least 360 kVA. If maximum demand falls to 300 kVA, it still pays ₹2,30,760 in fixed charge: ₹38,460 for 60 kVA it did not use. Its monthly minimum is 40,000 units, well below its usual use.

What one demand spike costs

Suppose the same plant has one bad 15 minutes, say several heavy motors restarting together after a power cut, and maximum demand reaches 500 kVA. That is 125% of contract demand. The fixed charge goes to ₹3,07,680 on 480 kVA, the 20 kVA above 120% adds ₹16,666 at 1.3 times the rate, and with demand at 500 kVA the 50% load factor line moves above the month’s units, so every unit pays the higher energy rate. The bill goes from ₹13,29,093 to ₹14,21,513: ₹92,420 more, for one interval. The MD penalty guide explains how to stop it.

Where Madhya Pradesh plants usually save

• Keep maximum demand within contract demand. Above it the fixed charge rises, and past 120% it rises faster.
• Move flexible load from the peaks to 9 am – 5 pm. That is 40% of the energy rate on every unit moved.
• Keep power factor at 0.99 or better on HT. The incentive jumps from 3% at 98% to 5% at 99% and 7% at 100%.
• Keep load factor above 50%. Every unit above the line is about a rupee cheaper.
• Check contract demand once a year, against twelve months of real maximum demand.

How KONDUKTOR® EMS helps

KONDUKTOR® EMS reads the multifunction meters already on your panels and shows, while the month is still running, the numbers this tariff bills you on.

• Running maximum demand against contract demand, with a warning before it crosses.
• Power factor for each meter, so a drop below 0.99 is caught the same day.
• Hourly energy, so you can see how much falls in the peaks, solar hours and night.
• Load factor for the month so far, against the 50% line.
• Twelve months of maximum demand history to size contract demand.