Maharashtra: Relief for Electricity Consumers: Tariff Cut for Domestic, Industrial, and Commercial Users

Mumbai, 25th June 2025: In a landmark decision, the Maharashtra Electricity Regulatory Commission (MERC) has approved a proposal submitted by the Maharashtra State Electricity Distribution Company Limited (MSEDCL or Mahavitaran) to reduce electricity tariffs for all consumer categories — domestic, industrial, and commercial — over the next five years.

This is the first time in the state’s history that Mahavitaran has proposed a reduction in power tariffs, and the commission has accepted the plan in full. Key highlights of the new tariff order include a 10% additional Time-of-Day (ToD) rebate for daytime usage by households equipped with smart meters and special incentives for domestic consumers generating solar power.

The state government’s Mukhyamantri Baliraja Free Electricity Scheme currently provides free power to over 45 lakh farmers with pumps up to 7.5 HP. To further support agricultural energy needs, the Chief Minister’s Solar Agriculture Feeder Scheme 2.0 is being implemented. This ambitious program will decentralize solar power generation and use it to run farm pumps during the day. With a targeted capacity of 16,000 MW, the scheme is expected to deliver electricity at an average cost of just ₹3 per unit. Completion is scheduled for December 2026. The project aims not only to benefit farmers but also to significantly reduce Mahavitaran’s overall power procurement costs.

To plan for future demand, Mahavitaran has developed a Resource Adequacy Plan and signed power purchase agreements totaling 45,000 MW to meet the state’s projected capacity of 81,000 MW by 2030. Of this, 31,000 MW will come from renewable sources, helping the utility save approximately ₹66,000 crore over five years due to the lower cost of green energy.

These savings enabled Mahavitaran to propose the tariff cuts, which have now received regulatory approval. The move is expected to provide much-needed relief to domestic consumers and boost economic growth by reducing operating costs for industries and businesses.

Lokesh Chandra, Chairman and Managing Director, MSEDCL, said,
“For the first time, MERC has approved a tariff cut based on Mahavitaran’s petition. This decision brings relief to domestic consumers and will also stimulate industrial and commercial growth. Chief Minister Devendra Fadnavis had promised to reduce household power tariffs, and that promise has been fulfilled. Instead of an annual 10% hike in industrial and commercial rates, these sectors will now see reductions over the next five years. This decision aligns with the Prime Minister’s vision and will significantly contribute to Maharashtra’s journey toward becoming a $1 trillion economy. Mahavitaran is committed to delivering quality power at affordable rates to all consumers.”