What is Slab-Wise Progressive Electricity Pricing?
Most modern electricity grids do not charge a single flat price for power. Instead, utility providers use a progressive slab structure (also known as tiered or telescopic tariffs) to encourage energy conservation and subsidize basic household lifelines.
Under this system, initial blocks of energy (e.g. 0 to 100 kWh) are charged at the lowest subsidized rate. Once your monthly usage exceeds that boundary, subsequent kilowatt-hours are charged at increasingly higher tier rates.
Example Progressive Consumption Slab Benchmark Table
| Usage Slab Tier | Monthly Range (kWh) | Relative Tariff Category | Typical Household Profile |
|---|---|---|---|
| Tier 1 | 0 – 100 kWh | Lowest Protected Rate | Lifeline consumption (lights, fans, small fridge) |
| Tier 2 | 101 – 300 kWh | Standard Moderate Rate | Average urban apartment without heavy AC use |
| Tier 3 | 301 – 700 kWh | Higher Unsubsidized Rate | Regular seasonal AC or electric water heating |
| Tier 4 | 700+ kWh | Maximum Commercial Rate | Heavy consumption (multiple ACs, EV charging, luxury villa) |
Frequently Asked Questions
What is slab-wise electricity pricing?
It is a progressive rate structure where each additional tier of monthly electricity consumption costs more per kilowatt-hour than the preceding tier.
Why did my per-unit rate jump significantly this month?
You likely crossed an upper consumption threshold (e.g. going from 295 kWh to 310 kWh), which pushed your highest units into a significantly more expensive tariff bracket.
Is unit price the same everywhere?
No. Electricity unit prices vary dramatically depending on whether generation is powered by low-cost hydro/nuclear or expensive imported natural gas/coal, as well as government subsidies and transmission distances.
