Tuesday, August 25, 2026

Free Electricity Ends for Power Officers – Govt Replaces It With Upto Rs. 55,000 Monthly Allowance!

The government has abolished the free electricity facility previously available to officers in the power sector, replacing the benefit with a fixed monthly cash allowance of up to Rs. 55,000.

Under the revised arrangement, eligible officers will no longer receive free electricity units as part of their employment benefits.

Instead, they will be provided with a predetermined monthly allowance based on the applicable entitlement.

The decision is aimed at restructuring employee perks and reducing the financial burden associated with subsidised electricity consumption.

It also marks a shift from providing electricity in kind to offering a direct monetary benefit.

The move is expected to bring changes to the existing compensation and benefits structure for power-sector employees, while potentially improving transparency in how such allowances are accounted for.

The government’s decision comes amid broader efforts to manage electricity-sector finances, reduce unnecessary subsidies and improve the financial sustainability of the power sector.

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