If you live in Port Blair, Havelock Island (Swaraj Dweep), or any other part of the stunning Andaman and Nicobar archipelago, you already know that everyday utilities operate very differently here compared to mainland India. Because the islands are isolated from the national power grid, electricity is primarily generated through local, high-cost diesel generator (DG) sets, supplemented by a growing network of solar power plants.
Despite the incredibly high cost of generating diesel power, the 1 unit electricity price in Andaman & Nicobar remains astonishingly low for residential consumers. This is because the central government provides massive subsidies to ensure basic living standards remain affordable for islanders.
In this detailed, beautifully formatted guide, we will completely break down the official FY 2026-27 domestic tariff slabs for the Andaman & Nicobar Electricity Department (EDA&N), explain exactly how your per-kW fixed charges are calculated, demystify the 5% electricity duty, and show you why crossing the 500-unit mark is a financial trap you must avoid.
Understanding the Andaman Telescopic Slab System
The Andaman & Nicobar Electricity Department uses a classic “telescopic” slab pricing model. This means your monthly electricity bill is not calculated at a single flat rate. Instead, your first block of units is incredibly cheap (just ₹2.05), and the rate progressively doubles and triples as you consume more power. This system is mathematically designed to reward households that conserve energy while heavily taxing excessive air conditioner usage.
Here is the official breakdown of the domestic electricity rates in Andaman & Nicobar:
📊 Andaman & Nicobar Domestic Tariff Slabs (FY 2026-27)
| Monthly Consumption Slab | Base Energy Rate (per unit) |
|---|---|
| 0 – 100 Units | ₹ 2.05 |
| 101 – 200 Units | ₹ 4.10 |
| 201 – 500 Units | ₹ 6.15 |
| Above 500 Units | ₹ 7.20 |
⚡ Per-kW Fixed Charges Explained:
Unlike some UTs that charge a flat monthly fee, Andaman & Nicobar charges Fixed Charges based on your “Sanctioned Load” (your official connection capacity). For domestic consumers, this is fixed at ₹30.00 per kW per month. Therefore, if you have a 4 kW connection for your home, your mandatory fixed charge is exactly ₹120 every single month, regardless of whether you consume 10 units or 1,000 units.
Step-by-Step Billing Calculation Example
To truly understand how these telescopic slabs apply to your meter reading, let’s look at a practical calculation. Assume you live in a standard 3BHK home in Port Blair with a 4 kW sanctioned load, and you consume exactly 550 units during a hot, humid month.
Your energy bill is calculated progressively through all four slabs. Here is the exact mathematical breakdown:
🧮 550 Units Base Charge Calculation
100 × ₹2.05 = ₹205.00
100 × ₹4.10 = ₹410.00
300 × ₹6.15 = ₹1,845.00
50 × ₹7.20 = ₹360.00
₹2,820.00
Next, the Electricity Department adds your fixed charges and state taxes to this base amount.
The 5% Electricity Duty and Final Bill
The base energy charge of ₹2,820.00 is just the cost of the raw power. On top of this, the Union Territory administration levies specific taxes to fund grid maintenance across the disparate islands.
Andaman & Nicobar currently applies a 5% Electricity Duty. It is crucial to understand that this 5% tax is calculated on the combined sum of your Energy Charges AND your Fixed Charges, not just the energy consumed.
💵 Final Bill Calculation (Including Duty)
💵 Final Bill Calculation (Including Duty)
₹2,820.00
₹120.00
₹2,940.00
+ ₹147.00
₹3,087.00
⚡ Stop Calculating Slabs Manually
Splitting your units across the ₹2.05, ₹4.10, ₹6.15, and ₹7.20 slabs, multiplying your kW load, and calculating the 5% duty is mathematically complex. You don’t have to do it by hand. Use our free, automated Andaman & Nicobar electricity bill calculator. Just enter your total units and your sanctioned load, and the tool will instantly generate your exact bill, perfectly formatted.
The Cost of Diesel Generation vs Consumer Tariffs
One of the most fascinating aspects of electricity in the Andaman & Nicobar Islands is the massive gap between what power costs to generate versus what you actually pay for it.
On the mainland, power is generated primarily by massive coal plants and transported via the national grid at an average cost of ₹4 to ₹5 per unit. However, the Andaman Islands are completely isolated. Power is largely generated by importing millions of liters of diesel on ships to run massive localized Diesel Generator (DG) plants.
Because of this, the actual cost of generating 1 unit of electricity in Andaman often exceeds ₹25.00 per unit. Yet, the administration bills domestic consumers just ₹2.05 for their first 100 units. The central government bears the enormous financial burden of this subsidy. This is why the administration strictly enforces the telescopic slab system—to ensure that the heavily subsidized power is used for essential living, not luxury consumption.
Rooftop Solar and Net Metering in Andaman
To reduce the crippling dependency on diesel, the Andaman administration is aggressively pushing for solar power adoption. The JERC has implemented highly favorable “Net Metering” regulations for residential households.
When you install solar panels, the electricity department replaces your standard meter with a bidirectional “Net Meter.”
- During sunny days, your house runs on free solar power. If your panels generate more power than you need, the excess electricity is exported back to the local island grid.
- At night, you import power from the grid as usual.
- At the end of the month, the EDA&N calculates the difference: (Units Imported) minus (Units Exported). You are only billed for the net remaining units.
Because Andaman’s top slab rate jumps to ₹7.20, every unit of solar power you export effectively saves you ₹7.20 plus the 5% duty. A standard 3 kW solar setup can completely wipe out an average household’s energy charges, leaving them to pay only the nominal fixed charge.
4 Proven Strategies to Lower Your Andaman Electricity Bill
1. Defend the 500-Unit Danger Line
The base rate climbs to its absolute maximum of ₹7.20 the moment your meter crosses 500 units. Monitoring your smart meter and heavily reducing Air Conditioner usage in the final week of your billing cycle to stay under 500 units will drastically reduce your final bill.
2. Downgrade Unused Sanctioned Load
Fixed charges are ₹30 per kW. If you have a 6 kW sanctioned load but only use a maximum of 2 kW simultaneously, you are needlessly paying ₹180 every single month. Apply to the electricity department to downgrade your load and permanently reduce your fixed costs.
3. Switch to 5-Star Inverter ACs
In a humid tropical climate like Andaman, air conditioners work extremely hard to remove moisture from the air. An old, non-inverter compressor AC will easily push your consumption into the punishing ₹7.20 slab. Upgrading to a modern 5-Star inverter AC can cut cooling electricity usage by up to 40%.
4. Utilize LED Lighting Only
Because the first 100 units are incredibly cheap at just ₹2.05, replacing every single incandescent bulb and old tubelight with modern 9W LED bulbs ensures that all your lighting needs are completely absorbed by the cheapest slab, reserving your higher slabs strictly for necessary appliances.
Frequently Asked Questions
What is the 1 unit electricity price in Andaman & Nicobar for homes?
Andaman & Nicobar uses a four-tier slab system for domestic consumers. Your first 100 units are billed at an ultra-cheap ₹2.05 per unit. The next 100 units (101 to 200) cost ₹4.10 per unit. Units between 201 and 500 cost ₹6.15 per unit. Any luxury consumption above 500 units is billed at the maximum rate of ₹7.20 per unit.
Why is electricity in Andaman so cheap compared to its generation cost?
Generating power via diesel generators on isolated islands costs over ₹25 per unit. However, the central government heavily subsidizes the residential tariffs to ensure that the basic cost of living remains affordable for the local island population. Commercial tariffs are kept higher to offset some of this loss.
How much is the Fixed Charge in Andaman & Nicobar?
For domestic connections, the fixed charge is calculated on a “per kW” basis. You must pay exactly ₹30.00 for every kilowatt of your officially sanctioned load every month. For example, a standard 3 kW connection incurs a ₹90 fixed charge.
What is the Electricity Duty in Andaman?
The UT administration levies a 5% Electricity Duty on domestic bills. It is critical to note that this 5% tax is calculated on the combined total of your Energy Charges and your Fixed Charges.
Are commercial electricity rates different in Andaman?
Yes. Commercial properties, hotels, and retail shops do not benefit from the cheap domestic slabs. They are billed under the Commercial tariff category, which carries significantly higher base rates and much steeper per-kW fixed capacity charges to help subsidize the domestic losses.
Official Resource: For further details on the latest tariff orders, net metering policies, smart meter installations, and power outage schedules, always consult the local Andaman & Nicobar Electricity Department (EDA&N) notices or the JERC website.
Disclaimer: The tariff rates, fixed charges, and duty figures mentioned are based on the latest JERC Tariff Orders for Andaman & Nicobar. Electricity tariffs and FPPCA surcharges are subject to periodic revisions. Always refer to your official EDA&N bill for your exact and legally binding billing details.
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