MSEDCL tariffs to reduce by 1%-10% this year

Maharashtra's electricity tariff will be reduced by 1%-10% for MSEDCL consumers, benefiting mainly residential users, and continuing until 2029-30.

Mumbai: In a relief to Maharashtra State Electricity Distribution Company Ltd (MSEDCL) consumers, the Maharashtra Electricity Regulatory Commission (MERC) has accepted the distributor’s demand to reduce the tariff by anywhere between 1% and 10% depending on the power consumption. This would mainly benefit residential consumers, along with industrial consumers to some extent.

MSEDCL supplies power to consumers in Mumbai’s eastern suburbs of Mulund and Bhandup, along with Thane, Navi Mumbai and the rest of Maharashtra. (Praful Gangurde/HT Photo)

MSEDCL supplies power to consumers in Mumbai’s eastern suburbs of Mulund and Bhandup, along with Thane, Navi Mumbai and the rest of Maharashtra. It had recently filed a review petition against MERC’s order to hike the electricity tariff.

On Wednesday, MERC issued an order stating that the MSEDCL tariff would be reduced every year until 2029-30. For 2025-26, the reduction would be between 1% and 10%.

According to the order, the average billing rate (ABR) of residential consumers using less than 100 units per month will go down by 10%, from the existing ₹8.14 per unit to ₹7.31 per unit, in the current financial year. It will reduce by another 21 paisa per unit in 2026-27 and then to ₹6 per unit by 2029-30.

The ABR of consumers using between 101 and 300 units per month will go down from the existing ₹13.23 per unit to ₹12.62 per unit in the next five years, with a reduction every year. For consumers using 301-500 units per month, the ABR will decrease by 1% from the existing ₹17.78 per unit to ₹16.35 per unit by 2029-30. For those using more than 500 units per month, the ABR will reduce from ₹19.23 per unit to ₹18.47 per unit in the next five years.

For industrial consumers, the existing ABR will decrease by 10 paise per unit this year from ₹10.88 per unit to ₹10.78 per unit. By 2029-30, it will be ₹9.97 per unit. Commercial consumers will benefit from a 1% tariff reduction.

MSEDCL managing director Lokesh Chandra said the distributor had signed power purchase agreements wherein 31,000 MW will come from renewable energy, leading to savings of ₹66,000 crore over the next five years. “As a result, the tariff for residential, industrial and commercial consumers will go down, and it would contribute in making Maharashtra a $1 trillion economy,” he said.

Welcoming the order, chief minister Devendra Fadnavis said, “In the history of Maharashtra, it’s the first time that the electricity tariff of residential consumers has been reduced by 10% for this year. If we consider the next five years, the rates in 2029-30 would be lower by 26% than the existing tariff. Tariffs for industrial, agricultural and commercial consumers will also go down in the next five years.”