Maharashtra's Time of Day Tariff to Burden Domestic Consumers with Peak-Hour Premiums
The Maharashtra Electricity Regulatory Commission (MERC) has introduced a new Time of Day (ToD) tariff under its multi-year tariff order, set to take effect from July 1, 2025, with the final order announced in March 2026. While overall power tariffs are projected to decrease by 4% to 30% until 2030, domestic consumers in the state are poised to be the most adversely impacted by this policy shift.
Peak-Hour Surcharge to Affect Residential Usage Patterns
The ToD tariff imposes a 20% premium on electricity consumption during peak hours, defined as 7 am to 9 am and 5 pm to midnight. This timing aligns with typical household activities, such as cooking, cleaning, and entertainment, making it challenging for residents to avoid higher costs. With approximately 2.6 crore residential consumers in Maharashtra, many are expected to face increased bills due to this structure, as peak-hour usage constitutes about 80% of total domestic consumption.
Consumer Voices Highlight Practical Challenges
Residents like Shalini Thorat, a working woman from Nashik, express frustration over the timing. "From 7 am to 8:30 am, power is used for electrical cooking gadgets, ovens, grinders, washing machines, and clothes irons before people leave for office. They return at 7:30 pm, when gadgets are used for entertainment, fans, air coolers, and cooking, continuing until 9:30 pm," she said. "So what is the off-peak hour for residential consumers?"
Ramesh Sutar, another Nashik resident employed in the private sector, echoes this concern, questioning how families with working members or students can benefit from off-peak hours, also termed 'solar hours'. "Can the government tell us when and how we can benefit from these off-peak hours?" he asked.
Criticism and Calls for Relief Measures
The tariff has sparked criticism from consumer groups and individuals. Ragini Borole, a resident of Cidco, labeled it "a punishment for us," reflecting widespread discontent. The Nashik unit of the Akhil Bhartiya Grahak Panchayat has voiced strong opposition, with Hira Jadhav, a retired engineer from the state electricity company and president of the unit, stating, "It will be a harassment for the residential consumers."
Jadhav emphasized that ToD tariffs should be designed in the interest of consumers, not utility companies. "The MERC, the government, and the MSEDCL should take appropriate measures to give relief to consumers in real terms. One step could be reworking the premium charged on residential consumers," he added.
Regulatory Process and Legal Challenges
MERC initially announced the multi-year tariff order on March 28, 2025, revised it on June 25, 2025, and faced a legal challenge in the Bombay High Court. The court directed MERC to conduct a public hearing again, leading to the final order pronounced on March 25, 2026. Despite the overall tariff reduction claims, the disproportionate impact on residential users remains a contentious issue, with calls for more equitable adjustments to the premium structure.
