Maharashtra Electricity Tariff Reduction: Mahavitaran Consumers to Benefit from April 1
Synopsis
Key Takeaways
Mumbai, March 27 (NationPress) Consumers of the Maharashtra State Electricity Distribution Company, known as Mahavitaran, who utilize up to 100 units monthly will witness an average tariff reduction from Rs 7.31 to Rs 7.10.
Over the next five years, the electricity tariff for this segment is projected to drop by 26 percent. Before the new multi-year tariff order was issued, the rate was Rs 8.14 in 2025.
For those consuming between 100 to 300 units, the tariff will see a decrease from Rs 13.17 to Rs 12.94, previously set at Rs 13.23 in 2025.
On Friday, the Maharashtra Electricity Regulatory Commission (MERC) released its order concerning Mahavitaran’s multi-year tariff petition that spans the financial years 2025–26 to 2029–30.
The commission has approved Mahavitaran’s proposal for a reduction in electricity tariffs throughout this period.
Electricity charges across all consumer categories, including domestic, industrial, and commercial, are expected to gradually decrease each year until 2030. Notably, there will be no tariff increases for any segment.
The revised tariffs will be effective starting April 1.
For High Tension (HT) industrial consumers, the tariff will drop from Rs 10.78 to Rs 10.71, with a previous rate of Rs 10.88 in 2025. Tariffs are set to decline across all categories, with further reductions planned for April 1 annually until 2029–30.
In this order, MERC has established a tariff of Rs 9.50 per unit for the year 2026–27 applicable to both HT and Low Tension (LT) electric vehicle (EV) charging stations. This rate will remain stable until 2028–29, aiming to stimulate EV adoption.
Housing societies are permitted to set up LT charging stations for EVs within their premises. Existing concessions for domestic consumers with rooftop solar systems will remain unchanged. The new tariff structure will not put these consumers at a disadvantage.
Mahavitaran has announced that domestic consumers with smart meters who previously received a concession of 80 paise per unit for electricity consumed between 9:00 AM and 5:00 PM will now benefit from an increased concession of 85 paise per unit during the financial year 2026–27.
The Time-of-Day (ToD) concession for electricity usage between 9:00 AM and 5:00 PM will also continue for industrial and commercial consumers.
These consumers will enjoy a 15 percent rebate on tariffs from April to September and a 25 percent rebate from October to March during solar hours (9:00 AM to 5:00 PM), allowing access to reduced rates during the crucial first production shift.
MERC had previously issued an order concerning Mahavitaran’s petition in late March last year, which was later stayed. Following a review by Mahavitaran, MERC released a new order in June 2025.
This June order faced challenges in the Bombay High Court.
The High Court, citing the principle of natural justice, set aside the June order.
In November, the Supreme Court directed the Commission to issue a new order, adhering to the principle of natural justice and fulfilling all required technical formalities.
Consequently, MERC has now issued its order after conducting a public hearing on Mahavitaran’s petition, ensuring compliance with the principles of natural justice and completing all technical requirements.
The directives of the Supreme Court have been fully implemented, providing clarity on electricity tariffs until 2030.