Maha: Electricity tariff to be cut by 10 pc for Mahavitaran consumers from July 1

Mumbai, June 25 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 a reduction in the electricity tariff of all categories of consumers for the next five years.

The MahaYuti government is likely to get political benefits from the reduction in electricity tariffs of Mahavitaran in the backdrop of the upcoming local body elections.

In the next few years, as cheap electricity will be available on a large scale through solar power projects at a rate of Rs 3.50 per unit, the electricity tariffs will be reduced in phases for various categories.

The Commission had earlier announced the new electricity tariffs from April 1 on March 29. 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, Mahavitaran 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.

“For the first time in the history of the state, a proposal to reduce electricity tariffs was submitted by the Mahavitaran. The order has mentioned that household customers who install smart meters will get an additional 10 per cent TOD( time of day) discount for daytime electricity consumption, and that households who generate solar energy will be encouraged. To reduce electricity tariffs, 16,000 MW of electricity will be available at an average rate of Rs 3 per unit through the Mukhyamantri Saur Krishi Vahini Yojana. The scheme is expected to be completed by December 2026. This scheme has been important in reducing the electricity procurement costs of the Mahavitaran while providing relief to farmers,” said the Mahavitaran in a release.

Keeping in mind the future electricity needs, the Mahavitaran has entered into power purchase agreements of 45,000 MW to increase the state's electricity supply capacity to 81,000 MW by 2030. Out of this, 31,000 MW of electricity will be obtained from non-conventional sources. Since this electricity will be available at a very economical rate, the Mahavitaran will save Rs 66,000 crore in electricity procurement in the next five years. In view of this, the Mahavitaran had presented the proposal for electricity tariff reduction before the Commission, said the release.

Mahavitaran CMD Lokesh Chandra said, “The MERC has ordered a reduction in electricity tariffs for the first time as per the petition of Mahavitaran. While the reduction in electricity tariffs will provide relief to domestic consumers, industrial businesses will get a boost. Every year, industrial and commercial electricity tariffs increased by ten per cent. Instead, now the electricity tariffs of these categories will be reduced in the next five years. In line with the Prime Minister’s vision, the reduction in electricity tariffs will make the state a trillion-dollar economy under the leadership of CM Defendra Fadnavis. Mahavitaran is committed to providing quality electricity to consumers at affordable rates.”

Sanjay Jog can be contacted at sanjay.j@ians.in

--IANS

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