Power tariffs to drop for next 5 years across Maharashtra

Chhatrapati Sambhajinagar

In a major relief for electricity consumers, the Maharashtra Electricity Regulatory Commission (MERC) has approved a proposal by Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) to reduce power tariffs over the next five years across all consumer categories residential, commercial, and industrial.

This is the first time in state history that MSEDCL has proposed a tariff cut, aimed at easing power bills and promoting energy efficiency.

Features include:

• 10% daytime rebate for domestic users with smart meters under the Time-of-Day (ToD) scheme

• Incentives for households generating solar power

• Continuation of the Baliraja Free Power Scheme, under which 45 lakh farmers using up to 7.5 HP pumps are receiving free electricity

The tariff reduction is supported by the Chief Minister Solar Agricultural Feeder Scheme 2.0, which aims to provide daytime power to agricultural pumps using decentralized solar generation. With a planned capacity of 16,000 MW, the scheme will supply power at just Rs 3 per unit and is expected to be completed by December 2026.

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45,000 MW power deals signed to cut costs

To meet future demand, MSEDCL has signed power purchase agreements (PPAs) for 45,000 MW, aiming to boost total state capacity to 81,000 MW by 2030. Of this, 31,000 MW will come from renewable sources at highly competitive rates. This strategic shift is expected to save Rs 66,000 crore in procurement costs over five years making the tariff cut possible. Mahavitaran officials confirmed that these savings were the foundation of the approved rate reduction, ensuring benefits reach both households and farmers.