Tamil Nadu is a frontrunner in giving free electricity to all domestic consumers, no matter their income. The 16th Finance Commission's main report quotes surveys from 2023-24 showing free power goes to households across all income levels. Surprisingly, middle and higher-income groups (Q3 and Q4) get more subsidies than lower-income groups (Q1 and Q2). This means the subsidy benefits higher consumers more. The Commission calls Tamil Nadu a state with "regressive benefits." Karnataka, Punjab, Rajasthan, and Himachal Pradesh also fall into this category. Over 2.3 crore consumers in Tamil Nadu get free electricity up to 100 units every two months. This subsidy started in May 2016. For the year 2025-26, the subsidy bill is estimated at ₹7,752 crore. In contrast, states like Kerala, Goa, Gujarat, and Odisha limit free power to specific groups such as Scheduled Castes/Scheduled Tribes or to consumers using less than 30 units monthly. Kerala and Goa have no households from the highest income group receiving free electricity. The report says this targeted method supports vulnerable populations with less financial burden on the states. The data highlights the challenge of delivering subsidies fairly while balancing fiscal impact.