Mumbai, June 25 Maharashtra Chief Minister Devendra Fadnavis, who also has charge of the Energy Department, hailed the order issued by the Maharashtra Electricity Regulatory Commission saying that for the first time in the state’s history, electricity tariffs will be reduced -- starting with a 10 per cent cut in the first year, and a total 26 per cent reduction in phases over the next 5 years.
“Thanks to the Maharashtra Electricity Regulatory Commission (MERC) for approving Mahavitaran’s proposal to reduce tariffs, a move never attempted before," he said.
In his post on X, CM Fadnavis said: “Previously, petitions used to be filed for tariff hikes of around 10 per cent, but this time, a petition was filed for a reduction — benefitting domestic, industrial, and commercial consumers alike. Nearly 70 per cent of consumers in the state use less than 100 units and they will be benefitted the most by the 10 per cent tariff cut. To ensure reliable daytime power for our farmers, work on Mukhyamantri Saur Krushi Vahini Yojana 2.0 is underway at a rapid pace. With a growing focus on renewable energy in our power purchase agreements, future savings in procurement costs will help sustain affordable tariffs.”
He added: ”It gives immense satisfaction to share this people-centric decision with the citizens of Maharashtra.”
The electricity tariff of domestic consumers of the state run Maharashtra State Electricity Distribution Company (Mahavitaran) consuming up to 100 units per month will be reduced by 10 percent from July 1 while a marginal reduction of one to three percent has been made for middle-class domestic and commercial and industrial electricity consumers consuming more than that.
The Maharashtra Electricity Regulatory Commission (MERC) has released its order on Wednesday on a reduction in the electricity tariff of all categories of consumers for the next five years.
The Commission earlier had announced on March 29 the new electricity tariffs to be effective from April 1.
Since Mahavitaran was facing a deficit of Rs 48,000 crore, it had presented the financial balance sheet before the Commission and Mahavitaran had demanded an increase in revenue accordingly. However, the Commission did not accept it and assumed that there would be a surplus of Rs 44,500 crore.
Stating that the Commission's decision would put a huge financial strain on Mahavitaran, it had filed a review petition objecting to various issues in the Commission's earlier order.
On this, the Commission has amended its previous order and accepted Mahavitaran's demands due to which the consumers will get relief from the rate cut. Mahavitaran's electricity tariffs will be reduced in phases for consumers in all categories.
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