Gujarat Electricity Reform Unlocks ₹400 Crore Annual Savings for Consumers

Ahmedabad | Gujarat — In a significant regulatory shift that promises to ease electricity costs for lakhs of consumers, the Gujarat Electricity Regulatory Commission (Gujarat Electricity Regulatory Commission) has approved key revisions in the state’s tariff structure following strong submissions by the Southern Gujarat Chamber of Commerce and Industry (Southern Gujarat Chamber of Commerce and Industry). The decision is expected to generate annual savings of over ₹400 crore for residential and industrial consumers across Gujarat.

The revision comes under the Time of Use (ToU) and Time of Day (ToD) tariff framework, which encourages electricity usage during non-peak hours. Under the updated system, consumers with smart meters will now receive a discount of 60 paise per unit for electricity consumed between 11:00 am and 5:00 pm.

A key outcome of the Chamber’s intervention is the removal of the term “pre-paid smart meter” from tariff documentation, with regulators now using only “smart meter” to avoid ambiguity and standardise definitions across distribution companies.

A delegation led by SGCCI President Nikhil Madrasi and Vice President-designate Ashok Jirawala presented detailed arguments during the GERC hearing. Chamber Secretary Paulik Desai and Managing Committee member Suresh Patel also participated in the proceedings.

Speaking on the decision, a Chamber representative said, “This reform removes long-standing confusion in tariff interpretation and ensures that consumers benefit directly from transparent and uniform rules. It will also encourage energy-efficient consumption habits.”

During the hearing, the Chamber argued that ToD and ToU frameworks must align with central guidelines, which recommend consistent time blocks for peak and off-peak pricing. The Commission accepted the logic, leading to the revised order.

Industries such as textiles, diamonds, and engineering are expected to benefit significantly, as they can now better schedule production during subsidised daytime slots, reducing operational costs and improving competitiveness. Residential consumers with smart meters will also gain direct bill reductions, especially during solar-rich daytime hours.