What is government subsidy?
A state government can pay part of your bill as a subsidy; the commission requires it to pay the discom in advance. Also called state subsidy, tariff subsidy, free units, subsidised tariff.
- Plain English
- Official sources
- Bill terms A–Z
Government subsidy on your bill
The commission sets the full tariff. The state government may then pay part of it for some consumers.
The bill may show the full charge and a subsidy line, or only the lower payable amount.
Example: Tamil Nadu's subsidy makes the first 200 units free for eligible homes from 10 May 2026.
If the government does not pay in advance, the full tariff applies under the Act.
Check your state's scheme rules. Some subsidies need a single connection or a use limit.
Related terms
Official sources
- Electricity Act, 2003 (as amended; copy hosted by the Tripura High Court), s.65
“If the State Government requires the grant of any subsidy to any consumer or class of consumers” - CSERC Tariff Schedule for FY 2026-27 (CSPDCL tariff order, 24-06-2026), LV-1 note iv
“shall be entitled for subsidy as per State Government Order”
We read this in an official document that quotes the main rule, not in the main rule itself.
Read on 17 October 2026. Your State regulator’s rules and your discom’s bill have the final word.