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Key Points

Maharashtra makes history with its first-ever electricity tariff reduction under CM Fadnavis. A 10% immediate cut benefits 70% of consumers using under 100 units. The state plans a 26% phased reduction over five years while prioritizing solar power for farmers. This landmark decision comes after MERC rejected Mahavitaran's deficit claims and approved consumer-friendly pricing.

Key Points: Maharashtra Cuts Electricity Tariffs for First Time Under Fadnavis

  • First-ever tariff reduction in Maharashtra history
  • 10% immediate cut for under 100-unit consumers
  • 26% phased reduction over 5 years
  • Farmers to get reliable daytime power via solar scheme
3 min read

Electricity tariffs will be reduced for the first time in Maharashtra's history: CM Fadnavis

Maharashtra announces historic 10% electricity tariff cut, with plans for 26% reduction over 5 years, benefiting 70% of consumers.

"Thanks to MERC for approving Mahavitaran’s proposal to reduce tariffs, a move never attempted before. – CM Devendra Fadnavis"

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.

- IANS

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Reader Comments

R
Rajesh K.
Finally some good news for middle-class families! Electricity bills were becoming unbearable in Mumbai. Hope this reduction is implemented properly without hidden charges. CM Fadnavis deserves credit for this people-friendly move 👍
P
Priya M.
As someone who carefully monitors monthly expenses, this 10% cut on <100 units is a blessing. But I wonder - how will Mahavitaran manage with Rs 48,000 crore deficit? Hope this doesn't lead to power cuts later. The solar energy focus is promising though ☀️
A
Amit S.
Good step but too little too late. Other states have had tariff reductions before. Maharashtra is always slow in passing benefits to common people. The 1-3% reduction for higher consumption is just tokenism. We need bolder reforms in power sector!
S
Sunita R.
My mother in Nashik will be so relieved! Senior citizens on fixed incomes struggle with rising costs. This reduction will help many households. Hope the farmers also benefit from the solar scheme mentioned. Jai Maharashtra!
V
Vikram D.
The math doesn't add up - from Rs 48,000 crore deficit to Rs 44,500 crore surplus? Sounds like election year gimmick. I'll believe it when I see reduced bills. Still, if true, it's a historic move. Fingers crossed!
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Neha P.
As a small business owner in Pune, even 3% reduction helps when you're running ACs all day. But what about improving infrastructure? Frequent voltage fluctuations damage our equipment. Reduction is good but quality matters too!

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