Maharashtra Power Tariff Soars 20% Despite CM's 5-Year No-Hike Pledge
Vidarbha industries slam 20% power tariff hike despite CM's vow

In a sharp contradiction to public assurances from the state's leadership, industries and consumers across Maharashtra are grappling with a steep and sudden rise in electricity bills. This surge comes just days after Chief Minister Devendra Fadnavis promised the legislative assembly that power tariffs would remain unchanged for the next five years and would even see a slight annual reduction.

Assurance Versus Reality: A 20% Price Shock

The Vidarbha Industries Association (VIA) raised a serious alarm on Tuesday, stating that electricity tariffs have already escalated by as much as 20% across the state. This increase directly contradicts the chief minister's statement made during the winter session's final day. Fadnavis had acknowledged historical hikes over 15-20 years but firmly declared that rates "will not increase for the next five years" and would "come down by 2% every year."

RB Goenka, chairman of VIA's energy cell, highlighted the breach of trust. "Consumers accepted the March 28 tariff decision in good faith, but within days, electricity rates were raised without hearing from the public, taking the hike to nearly 20% compared to past tariffs," he stated. The association's concerns are compounded by a new move from the Maharashtra State Electricity Distribution Company Ltd (MSEDCL), which is seeking to recover an additional ₹11,700 crore through a proposed tariff operation.

Mounting Financial Burden and Legal Wrangling

VIA president Prashant Mohota explained that this massive sum was not part of an earlier review petition, which involved nearly ₹80,000 crore and had already increased power costs by ₹1.50 to ₹2 per unit. "Now, another ₹11,000 crore has been added, and the entire burden will again fall on consumers, leading to further hikes," Mohota warned. "This is not at all good for the economy."

The tariff controversy has seen significant legal intervention. The Nagpur bench of the Bombay High Court, on November 3, 2025, quashed a review order by the Maharashtra Electricity Regulatory Commission (MERC). The court held that any tariff increase must follow due public consultation. The Supreme Court reinforced this principle on November 17, setting aside a unilateral order and reprimanding MSEDCL for not adhering to due process.

Despite these clear rulings, VIA alleges that inflated bills continue to be issued based on the quashed order. The sequence of events reveals a pattern: revised tariffs were to start in April, but MSEDCL filed a review petition the same month seeking another increase. By June, MERC approved a further hike through a review order, bypassing mandatory public consultation. This order also reduced benefits for solar power users from 20 hours a day to just eight.

Widespread Outrage and Economic Consequences

The cumulative effect has sparked anger among households, traders, and manufacturers. Goenka pointed out that Maharashtra already has the highest power tariffs in the country, making this move particularly damaging. He argued that a review petition has a limited scope and should not be used to reopen the entire tariff structure, an action he called "in clear violation of HC & SC orders."

The situation places immense pressure on the state's economic ecosystem. For industries in Vidarbha and beyond, rising operational costs threaten competitiveness. For the common consumer, the promise of stable bills has been broken, leading to financial strain and eroding confidence in the government's public commitments on essential utility pricing.