The Tripura government will bear the entire additional burden arising from the electricity tariff hike approved by the Tripura Electricity Regulatory Commission (TERC) for the 2026-27 financial year, Chief Minister Dr. Manik Saha announced on Friday.

The subsidy will be effective from May 2026 and is expected to cost the state government more than Rs 100 crore. The decision was approved by the state Cabinet to ensure that consumers are not forced to pay more because of the revised tariff.

According to the Chief Minister, the subsidy will benefit consumers across most categories, including households, small, medium and large businesses, traders, farmers and industries. However, certain categories, including railway traction, will not receive the full subsidy.

For Defence establishments, Railways, All India Radio, Doordarshan and other specified categories, the government will bear 15 per cent of the additional tariff burden.

Saha said the decision followed complaints from consumers over higher electricity bills, including concerns linked to smart-meter readings. He said he returned from Delhi after the issue was brought to his attention and held discussions with the Power and Finance Ministers and senior officials.

“After examining the matter, it became clear that the additional burden would ultimately have to be met through a government subsidy,” the Chief Minister said.

He said he subsequently directed the Power and Finance departments to work out a solution, following which the proposal was placed before the Cabinet and approved.

The government has also decided to provide relief to consumers who have already paid bills calculated under the revised tariff. Saha said the additional amount collected from such consumers would be adjusted through their subsequent electricity bills.

“The extra amount paid by consumers will be adjusted and returned in a phased manner through the electricity bills for September, October and November,” he said.

The Chief Minister acknowledged that the decision would place an additional financial burden on the state government, which is already facing fiscal constraints. However, he said the government had prioritised protecting consumers from the impact of the tariff revision.

Saha also pointed to the recent rise in gas prices amid the prevailing geopolitical situation, saying it had contributed to an increase in power-generation costs. Despite this, he said the government had chosen to absorb the additional burden rather than pass it on to ordinary consumers.

“We have taken this decision so that the people do not face any problem despite the financial constraints of the state government,” Saha said.