Maharashtra Electricity Regulator Approves Major Tariff Cuts for Residential Consumers
The Maharashtra Electricity Regulatory Commission (MERC) issued a significant new multi-year tariff directive on Friday, promising substantial reductions in electricity bills for residential users across the state over the coming five-year period. This fresh order, which supersedes a previous directive from June 25, 2025, that faced legal challenges from various stakeholders, was passed under the leadership of Commission Chairperson Valsa Nair Singh.
Legal Review Leads to Revised Tariff Framework
Following a Supreme Court intervention that directed the Maharashtra State Electricity Distribution Company Limited (MSEDCL) to conduct fresh hearings, the regulatory body reconsidered its review petition after consulting all involved parties. The outcome is a revised tariff structure that delivers immediate and long-term financial relief to households.
For the current financial year, residential consumers will benefit from tariff reductions of up to 10%, providing prompt economic respite. Looking ahead, the cumulative reductions are projected to range from 4% to 26% by the fiscal year 2029-30, marking a progressive decrease in electricity costs.
Enhanced Time-of-Day Tariffs and Solar Incentives
The order also fortifies the Time-of-Day (TOD) tariff mechanism, designed to motivate consumers to shift their electricity usage to non-peak hours and periods abundant with solar energy. A key enhancement is the increase in the rebate for consumption during solar-rich hours, which has been raised from 80 paise per unit to 85 paise per unit. This adjustment aims to promote more sustainable energy consumption patterns and alleviate grid pressure during peak times.
In an official media statement, an MSEDCL spokesperson confirmed, "The TOD concession for electricity usage during the 9 am to 5 pm period will continue for industrial and commercial electricity consumers." The spokesperson further noted that as the second year of the order commences on April 1, additional tariff reductions will be implemented.
Substantial Savings for Low-Usage Households and EV Owners
A particularly consumer-friendly aspect of the new order is the sharp reduction in electricity charges for electric vehicle (EV) charging at residential premises and housing societies. The tariff has been slashed from Rs 10.22 per unit to Rs 9.25 per unit with immediate effect, making EV ownership more affordable and encouraging the adoption of cleaner transportation options.
For consumers using up to 100 units per month, the average tariff will decrease from Rs 7.31 to Rs 7.10. Over the five-year span, these users will experience a 26% reduction in their electricity bills. Prior to this new multi-year tariff order, the rate stood at Rs 8.14 until 2025.
Stable Tariffs for EV Charging Infrastructure
To further support the EV ecosystem, MERC has established a fixed tariff of Rs 9.50 per unit for high-tension and low-tension electric vehicle charging stations for the year 2026-27. This rate will remain stable until 2028-29, providing predictability and encouraging investment in charging infrastructure.
The MSEDCL spokesperson added, "Housing societies can set up low-tension charging centres for electric vehicle charging within their premises," facilitating convenient access to charging facilities for residents.
This comprehensive tariff revision not only alleviates the financial burden on Maharashtra's residential electricity consumers but also aligns with broader environmental goals by incentivizing off-peak usage and promoting electric mobility through cost-effective charging solutions.
