State government to reduce electricity tariffs by 10-30% from April 1

Mumbai: Maharashtra state government has decided to reduce electricity tariffs by 10-30%. The  Maharashtra Electricity Regulatory Commission (MERC) has sanctioned the reduction in electricity tariffs for residential consumers by 10-30%. The new rates will be effective from April 1.

However, this unprecedented cut includes a decrease in cross-subsidies for industries, with different reductions for high-tension (HT) and low-tension (LT) industries. This is part of the multi-year tariff order issued by MERC on its website. Overall reduction in tariffs for all residential consumers across the slabs is in the range of 10-12 per cent.

The reduction in tariff for residential consumers with a consumption slab (1-100 units) would be around 24 per cent by FY 2029-30.

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Further, the MERC has enabled time of day (ToD) rebate of Rs 0.80 to 1.00/kWh for residential consumers for consumption during Solar Hours (9 am to 5 p.m). MERC has approved the revenue surplus of Rs 44,480 crore as against Mahavitaran’s projections of a revenue gap of Rs 48,066 crore.

With the reduction in tariff approved in the order, the overall average price of electricity for HT-Industry would reduce by around (-15 per cent), whereas in the case of LT-Industry, the average price of electricity would reduce by around (-11 per cent) for FY 2025-26. Thereafter, by end of the 5th Control Period (2029-2030), the tariff for HT-Industry will further reduce at an annualised rate of (-4 per cent) and that of LT-Industry will further reduce at an annualised rate of (-3 per cent).