MSEDCL hikes electricity tariff from April 2024 - Hindustan Times

MSEDCL hikes electricity tariff from April 2024

BySiddharth Gadkari
Apr 02, 2024 08:32 AM IST

Maharashtra consumers face a 10% increase in electricity bills due to tariff hike by MSEDCL. Concerns raised by consumer associations as bills see 21.65% rise.

Starting this month, Maharashtra consumers will have to spend more on electricity bills, as the Maharashtra State Electricity Distribution Company (MSEDCL) have increased their tariff. As per MSEDCL officials, When the fuel surcharge and tariff are combined, the average consumer’s energy bill rises by about 10%.

Power supply utility MSEDCL hikes electricity tariff from April 2024. ((PIC FOR REPRESENTATION))
Power supply utility MSEDCL hikes electricity tariff from April 2024. ((PIC FOR REPRESENTATION))

Starting April 1, 2024, consumers will see an average 7.50 per cent increase in their electricity bills, along with a 10 per cent rise in the fixed rate. This adjustment, required by the Maharashtra Electricity Regulatory Commission (MERC), follows MSEDCL’s approved request for a tariff hike submitted last year.

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The approval of the tariff hike request by MSEDCL has raised concerns among power consumer associations, who argue that it translates to an average increase of 21.65 per cent. Notably, electricity bills went up by 7.25 per cent in the previous fiscal year (2023-24) and are now seeing an additional 7.50 per cent hike in the current financial year (2024-25). Moreover, fixed charges have increased by 10 per cent annually. These changes will affect all consumer categories, including households, traders, farmers, and industries.

Starting April 1, 2024, customers across various categories will see a bump in their bills compared to the previous year. For instance, single-phase domestic customers will now pay 128 instead of 116 as mandatory charges.

Thereafter every unit of consumption will see a 7.50 per cent hike in the total bill.

Commercial customers will face a new tariff of 517 instead of 470, while public water supply users will pay 129 instead of 117. Similar adjustments apply to other categories like 20 to 40 kW customers, customers above 40 kW, agricultural customers, and small industrial customers.

Even streetlights and government offices/hospitals consuming up to 20 kilowatts will experience tariff changes. For example, streetlights will now cost 142 instead of 129, and government offices/hospitals will pay 427 instead of 388.

In addition to these changes, consumers will also bear a fuel surcharge reflecting the increased cost of electricity from the open market.

With temperatures soaring in the state, electricity consumption has gone up significantly. This announcement of tariff hikes further adds to the financial strain on consumers during this period of high demand.

Rajendra Pawar, Chief Engineer of MSEDCL of Pune circle said, “As per MERC guidelines, MSEDCL has increased tariff. New tariff rates are applicable from April 1 and it will reflect in April bills.”

A senior official from MSEDCL mentioned that the tariff hike can’t be postponed because it’s not connected to any policy decision, despite the model election code of conduct. He further stated that it’s an ongoing process as per the rules set by MERC.

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