Mumbai, March 29 (AHN) Around 3.16 crore consumers of the state public distribution company Maharashtra State Electricity Distribution Company Limited (MSEDCL) or (Mahavitaran) will have to shell out less towards the power tariff from 2025-26 to 2029-30.

The power regulator Maharashtra Electricity Regulatory Commission (MERC) in its order released late Friday night has approved tariff reduction of 10 per cent in FY 2025-26 and cumulative reduction of 16 per cent by FY 2029-30 vis-a-vis existing tariff (including Fuel Adjustment Cost), as against Mahavitaran's claim for 0 per cent revision in FY 2025-26 and reduction of 3.6 per cent by FY 2029-30.

This was done with a projected revenue surplus of Rs 44,481 crore and the corresponding reduction in the overall average cost of supply.

The MERC issued its order on the Mahavitaran's multi-year tariff petition. The revised tariffs will be effective from April 1.

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.

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.

In a relief to the industry consumers, the MERC has reduced the Cross Subsidy for HT (high tension)Industry from existing level of 113 per cent to 101 per cent and for LT (low tension) Industry from existing level of 108 per cent to 100 per cent to match with average cost of supply (ACoS) over the period.

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).

Further, the MERC has categorised high-priority industries such as Data Centers and semiconductor units under the Industrial category, which can avail all the above benefits to reduce their power purchase cost. Further, to encourage their electricity consumption through 100 per cent Green Energy either through open access or through Green Tariff or a combination thereof, the MERC has approved a discount of 10 per cent in Wheeling Charges to such Data Centers and semiconductor units. This is aimed at attracting more and more Data Centers and semiconductor units in Maharashtra.

The MERC's order comes especially when Chief Minister Devendra Fadnavis said Maharashtra has emerged as the data capital of the country. The state government has recently announced its comprehensive data policy.

Further, to promote tourism in the state, the MERC has included Hotels/Resorts/Guest Houses with Lodging facility under Industrial Tariff Category, where the tariff rates are, in anyways reduced significantly.

"This will result in a significant reduction in power bills for Hotels/Resorts/Guest Houses, which were earlier covered under the Commercial category. This is expected to spur the growth of the Tourism industry in the State. The stipulated zones have been proposed, whereby further discounts in energy charges are provided. Discount in Energy charges of 25 Paise/unit (for B-Zone), 50 Paise/unit (for C-Zone) and 75 Paise/unit (for D-Zone) is applicable based on the city in which the Hotel is located," said the MERC in its order.

The MERC has introduced only a single part tariff for the electric vehicle (EV) category (HT and LT) and has done away with a levy of Fixed/Demand Charges in line with the Ministry of Power Guidelines.

Further, to promote the use of EVs, the tariff is kept marginally lower than ACoS with applicability of ToD benefits to the same.

With the removal of Fixed/Demand Charges, the tariff for EVs would reduce by 8-10 per cent from the existing tariff level. The MERC has continued the lower tariff (discount/rebate) of 2.5 per cent in Energy Charge for Powerloom against the approved Energy Charge under LT-Industry.

In addition, the powerloom consumers would be able to avail the benefit of the incremental consumption rebate of Rs 0.75/kWh introduced for specified LT categories.

In the case of HT-Commercial Category, the Cross Subsidy is reduced from the existing level of 174 per cent to 127 per cent and for LT-Commercial category, it is reduced from 151 per cent to 130 per cent during FY 2025-26. The Tariff for the HT- Commercial category would reduce by around (-30 per cent) during FY 2025-26, and for LT Commercial category, the Tariff would reduce by around (-20 per cent). The tariff for the Commercial category is still above the ACoS.

Tariff for Agriculture consumers is subsidised with a ratio of average billing rate (ABR) to ACoS of only 57 per cent. With the solarisation of agricultural feeders, the cost of supply to deliver power to agriculture is expected to reduce over the period.

In the process of rationalisation of sub-categories/ tariff slabs, the MERC has merged the Public Service (Government) applicable for educational institutions & hospitals and Public Service (Others) to form a single category with uniform Tariff (Fixed Charge and Energy Charge) at both voltages (HT and LT).

The Mahavitaran chairman and managing director, Lokesh Chandra, in his recent interview with AHN, said that never in the history of Mahavitaran has tariffs been reduced.

On the other hand, the Mahavitaran independent director Vishwas Pathak had remarked that the reduction in tariff is on account of the Chief Minister's Solar Agriculture Feeder Project 2.0. The solar power projects that will be operational in two years will provide electricity to farmers and also benefit domestic and industrial consumers.

(Sanjay Jog can be contacted at [email protected])