• Residential single phase consumers (using 1-100 units) will see a steep 24% reduction by 2029-30 
• Hotels, resorts and guest houses, previously categorised under commercial tariff, will now be billed under the industrial tariff 
• New rebates will be available for residential consumers using power between 9 am and 5 pm 
• MERC has reduced Cross Subsidy for HT industrial consumers from existing level of 113% to 101% and for LT industrial consumers from existing 108 % to 100 % 
• Avg power price for HT industrial consumers will reduce by 15 % and for LT industrial consumers by 11% for FY 2025-26 
•  MERC has enabled ToD rebate of Rs 0.80 to 1.00/kWh for residential consumers during Solar Hours (9 am to 5 pm)

 

 

A Gudhi Padwa bonanza for 3.16 crore power consumers in State was announced as Maharashtra Electricity Regulatory Commission (MERC) has provided 10 per cent reduction in energy tariff to domestic consumer for next financial year. The new rates for 2025-26 and 2026-27 were decided after completing adjudication of MYT Petition of MSEDCL. As per the Commission’s ruling, there is across the board lowering of tariff as consumers will pay less for electricity starting from 2025. According to the new order, power tariffs will drop by 10% in the financial year 2025-26. By the year 2029-30, the total reduction will be 16%. This decision is in contrast to Mahavitaran’s proposal, which had pressed for no tariff change in 2025-26 and only a 3.6% reduction by 2029-30. The main reason behind this cut is a projected surplus of Rs 44,481 crore in revenue, which will help reduce the overall cost of electricity supply, as per MERC’s order.

 

 

For households, electricity prices will fall by 10-12%, depending on the usage. Those using between 1-100 units will see a steep reduction of 24% by 2029-30. New rebates will also be available for residential consumers using power between 9 am and 5 pm, during solar hours, giving them a discount of Rs 0.80 to Rs 1.00/unit. The only loss from consumers point of view is reduction in usage time by one hour. Now peak consumption period will be from 5 pm that may lead to marginal rise in bills.

 

 

 

Businesses will also benefit from new financial year. High-tension (HT) usage industries will see a reduction in electricity charges from current 113% to 101%, while low-tension (LT) industries will see a decrease from present 108% to 100%. HT industries will pay 15% less in 2025-26, with annual cut of 4% until 2029-30. LT connection industries will see an 11% drop initially, with 3% cut each year subsequently. Data centers and semiconductor units are now classified as industrial consumers, will also benefit due to lower tariff, along with 10% discount on charges if they use 100% green energy.

 

 

Hotels, resorts, and guest houses will now fall under industrial tariffs instead of commercial ones, leading to significant savings. Commercial users will also benefit from a reduction in cross-subsidy charges, leading to up to a 30% decrease in electricity costs for HT-Commercial users and 20% for LT-Commercial users. 

 

 

To encourage the use of electric vehicles, MERC has eliminated fixed demand charges for EV charging. With this, EV users can expect an 8-10% reduction in their electricity bills, thanks to lower rates and additional time-of-day benefits. 

 

 

Farmers will continue to receive heavily subsidised electricity, with rates well below the actual cost. In the future, more solar-powered agricultural feeders will help reduce the costs even further. 

 

 

For quite some time, The Hitavada has been consistently highlighting the hardship faced by power consumers. On several occasions, the newspaper has published articles and news stories on how the high power rates in Maharashtra were impacting trade and industrial growth. The recent campaign by this newspaper on ‘Effect of high power rates on the regional industrial units and its migration to adjoining states’ played a vital role in the latest decision.