How to Apply for Commercial Electricity Connection

What is a Commercial Electricity Connection?

A commercial electricity connection is a power supply meant for business premises — shops, offices, restaurants, hotels, clinics, showrooms, malls, and other commercial establishments. The tariff (rate per unit) for commercial connections is higher than domestic connections, and the application process requires additional documentation.

If you are starting a new business or converting a residential property for commercial use, you need a commercial electricity connection.

Types of Commercial Connections

Low Tension (LT) Commercial

• Load: Up to 100 kW (varies by state)
• Voltage: 230V single phase or 415V three phase
• Suitable for: Small shops, offices, clinics, restaurants, small businesses
• Most common type for small and medium businesses

High Tension (HT) Commercial

• Load: Above 100 kW
• Voltage: 11 kV or higher
• Suitable for: Large malls, hotels, hospitals, IT parks, large commercial complexes
• Requires own transformer and electrical infrastructure

Who Can Apply?

• Property owners planning to use premises for commercial purposes
• Tenants with owner's NOC and rent agreement
• Business owners with valid trade licence
• Builders/developers for new commercial projects
• Existing domestic connection holders converting to commercial use

Documents Required

For New Commercial Connection

1. Application form — from DISCOM office or website
2. Identity proof — Aadhaar, PAN card, passport of the applicant
3. Business registration — trade licence, GST registration, or Udyam certificate
4. Property ownership proof — sale deed, registry, or lease deed
5. NOC from landlord (if rented) — along with registered rent agreement
6. Building plan approval — from municipal authority
7. Electrical installation certificate — from licensed electrical contractor
8. Load calculation — estimated electrical load requirement
9. Passport-size photographs — 2-3 copies
10. Partnership deed / MOA (for firms/companies) — along with board resolution

For Domestic to Commercial Conversion

1. Application for tariff category change
2. Trade licence or business proof
3. Municipal authority NOC — for change of land use (if applicable)
4. Updated property tax receipt — showing commercial use

How to Apply Online

Step 1: Determine Load Requirement

Calculate the total electrical load your business needs. Add up all equipment — ACs, lighting, computers, refrigeration, machinery, etc. A licensed electrical contractor can help with this.

General load estimates:

• Small shop: 2-5 kW
• Office (10-20 people): 10-20 kW
• Restaurant: 15-30 kW
• Clinic/hospital: 20-50 kW
• Small factory: 50-100 kW

Step 2: Visit DISCOM Portal

Go to your state DISCOM's official website. Look for "New Connection" or "Apply Online" section.

Step 3: Register and Login

Create a consumer account with your mobile number and email. Complete OTP verification.

Step 4: Select Connection Type

Choose "New Commercial Connection" or "LT Commercial" from the service options.

Step 5: Fill Application Form

• Applicant details — name, address, contact
• Business details — type of business, trade licence number
• Property details — address, property ID, ownership type
• Connection details — requested load (kW), single/three phase
• Electrical contractor details — licence number, test report

Step 6: Upload Documents

Upload all required documents in PDF/JPG format within the specified size limits.

Step 7: Pay Fees

Pay application fee, security deposit, and other charges online. The amount depends on the requested load and DISCOM norms.

Step 8: Track and Follow Up

Note your application number. Track status online. DISCOM will schedule a site inspection.

Offline Application Process

1. Visit the DISCOM subdivision office serving your area
2. Collect the commercial connection application form
3. Get load estimation from a licensed electrical contractor
4. Fill form and attach all documents
5. Submit with fees at the office counter
6. Site inspection by DISCOM engineer
7. Connection released after inspection clearance

Fees and Charges

Total cost for a small commercial connection: ₹5,000 – ₹25,000. HT connections cost significantly more. Security deposit is refundable.

Commercial Electricity Tariff

Commercial tariff is higher than domestic tariff. Typical commercial rates:

• Fixed/demand charges: ₹100 – ₹300 per kW per month
• Energy charges: ₹6 – ₹10 per unit (varies by state and slab)
• Time of Day (ToD) tariff may apply for HT connections
• Power factor penalty for low power factor
• Electricity duty and taxes added to the bill

Check your state electricity regulatory commission's tariff order for exact rates.

Timeline

• Application to inspection: 7-15 working days
• Inspection to approval: 7-15 working days
• Approval to connection release: 15-30 working days
• Total: 1-2 months for LT connections
• HT connections: 2-6 months (infrastructure development needed)

Tips for Businesses

• Don't use domestic connection for business — it's illegal and attracts heavy penalties plus back-billing at commercial rates
• Get proper load sanctioned — underloading causes tripping; overloading wastes money on higher demand charges
• Install power factor correction — avoid penalty charges by maintaining power factor above 0.9
• Consider solar — commercial establishments benefit significantly from rooftop solar
• Keep electrical installation certificate safely — needed for inspections

Related Guides

• How to Transfer Electricity Connection — transfer connection for purchased property

• How to Get NOC from Electricity Board — NOC for property and business needs

• How to Get Duplicate Electricity Bill — download bills for GST input credit

• Apply for New Electricity Connection

• Pay Electricity Bill

Frequently Asked Questions

Can I run a business on a domestic electricity connection?

No, using a domestic connection for commercial purposes is a violation. If caught, you may face penalties, back-billing at commercial rates, and even disconnection.

What is the difference between single phase and three phase?

Single phase (230V) is suitable for loads up to 5-7 kW. Three phase (415V) is needed for higher loads, especially if you have ACs, heavy machinery, or motors. Most commercial connections above 5 kW require three phase.

How much security deposit do I need to pay?

Security deposit is calculated based on your sanctioned load and estimated monthly consumption. It's typically equivalent to 2-3 months' estimated bill amount. It's refundable when you surrender the connection.

Can I increase the load later?

Yes, you can apply for load enhancement anytime. Additional security deposit and development charges may apply. The process is similar to a new application but simpler.

What if my business is in a rented shop?

You can apply with the landlord's NOC and a registered rent agreement. Some DISCOMs keep the connection in the owner's name with the tenant as the authorized user.

How to reduce commercial electricity costs?

Use energy-efficient equipment (LED lights, BEE-rated appliances), install rooftop solar, maintain good power factor, use timers and sensors, and consider time-of-day tariff benefits for shifting load to off-peak hours.