Will electricity tariffs be reduced for the first time in Maharashtra's history?

Mumbai, June 25 (NationPress) In an unprecedented move, Maharashtra Chief Minister Devendra Fadnavis, who oversees the Energy Department, celebrated the announcement made by the Maharashtra Electricity Regulatory Commission. For the very first time, electricity tariffs will see a reduction, beginning with a 10 percent cut in the initial year and a total of 26 percent reduction phased out over the next five years.

CM Fadnavis expressed gratitude towards the MERC for endorsing Mahavitaran's proposal for tariff reductions, a groundbreaking initiative. He stated, “In the past, petitions were submitted for tariff increases averaging 10 percent; however, this time a petition was made for a reduction—benefitting domestic, industrial, and commercial consumers equally. Approximately 70 percent of residents in the state utilize less than 100 units of electricity monthly, making them the primary beneficiaries of the 10 percent cut.

To guarantee reliable daytime electricity for farmers, swift progress is being made on the Mukhyamantri Saur Krushi Vahini Yojana 2.0. With an increasing emphasis on renewable energy in our power procurement agreements, future savings will contribute to maintaining affordable tariffs.

He further noted, “It brings me great joy to announce this consumer-friendly decision to the people of Maharashtra.”

The electricity tariff for domestic consumers under Maharashtra State Electricity Distribution Company (Mahavitaran) who consume up to 100 units monthly will be reduced by 10 percent starting from July 1. Additionally, there will be a slight reduction of one to three percent for middle-class residential and commercial electricity consumers using more than that.

The Maharashtra Electricity Regulatory Commission (MERC) issued its directive on Wednesday regarding the reduction of electricity tariffs for all consumer categories over the next five years.

Previously, on March 29, the Commission had announced new electricity tariffs effective from April 1.

Despite Mahavitaran facing a deficit of Rs 48,000 crore, it presented its financial balance sheet to the Commission and sought a revenue increase. Nevertheless, the Commission rejected this request, assuming a surplus of Rs 44,500 crore.

Claiming that the Commission's decision would impose significant financial pressure on Mahavitaran, it filed a review petition contesting several aspects of the Commission's earlier ruling.

In response, the Commission has revised its prior order, accommodating Mahavitaran's requests, thereby allowing consumers to benefit from the tariff reductions. Tariffs will be gradually lowered for all consumer categories.