In shocker, MERC approves higher tariffs than those demanded by power companies

For instance, Adani Electricity had proposed ₹6.90 per unit of energy, which is common to both the high-consumption brackets of 301-500 and 500-plus units. This figure was actually less than the existing ₹7.45 per unit in the 301-500 bracket and the ₹8.55 per unit in the 500-plus bracket

MUMBAI: If you are a power guzzler, then brace for a much higher tariff in your electricity bills starting April. This time around, the power distribution companies of BEST, Tata Power and Adani Electricity have got approvals from the Maharashtra Electricity Regulatory Commission (MERC) which are even higher than those they had sought. The quasi-judicial body of MERC approved the tariff for five years from 2025-26 to 2029-30 late on Friday night.

In shocker, MERC approves higher tariffs than those demanded by power companies

All three power companies supply electricity to around 4.6 million consumers of all types in Mumbai, with over 3.1 million of these being residential consumers. The real shocker will be for the 1,75,000 consumers (above 500 units) and 4,01,000 consumers (between 301-500 units), for whom the approved tariffs are higher than what BEST, Adani Electricity and Tata Power had proposed earlier this January (see box).

For instance, Adani Electricity had proposed ₹6.90 per unit of energy, which is common to both the high-consumption brackets of 301-500 and 500-plus units. This figure was actually less than the existing ₹7.45 per unit in the 301-500 bracket and the ₹8.55 per unit in the 500-plus bracket. On the night of March 28, however, MERC granted Adani a hike of ₹2-3 per unit. There are 1.86 million residential consumers of the total 2.7 million consumers of Adani Electricity.

An Adani Electricity spokesperson said, “The consumers served by Adani Electricity will benefit from the MERC-approved tariff reductions of nearly 10% this year and 11.7% next year—bringing sustained relief without any increase in fixed charges. The Green Tariff premium has been reduced to ₹ 0.25/unit, making 100% renewable energy more accessible than ever.”

Coming to the island city, the BEST supplies to 1.06 million consumers, of which 577,000 are residential. Starting April 1, the higher category of residential consumers will pay ₹9.81 per unit (301-500 units) and ₹12.01 per unit (500> units). This is at least ₹2-4 per unit more than the existing tariffs while the Undertaking had sought ₹2-3 per unit more.

However, there is relief for Tata Power consumers in this bracket who will have to pay ₹10.79 per unit (301-500 units) and ₹11.79 per unit (500> units), if one compares this with the current tariffs that stand at ₹11.62 per unit and ₹12.56 per unit respectively. However, they too had sought a lower tariff than what was approved by MERC.

“Tata Power continues to be Mumbai’s most affordable and reliable power company,” said a Tata Power statement. “The average tariffs of Tata Power are much lower than the average tariffs of other Distribution Licensees in the state… The Green Tariff has been reduced from the existing ₹0.66 per Kwh to ₹0.25 per Kwh to consumers in order to avail of a green certificate.”