Nagpur: The Maharashtra Electricity Regulatory Commission (MERC) conducted a public hearing on Tuesday regarding the multi-year tariff petition filed by Maharashtra State Electricity Distribution Company Ltd (MSEDCL). The hearing, held at the District Planning Committee hall in Sadar, saw heated discussions over agricultural power supply, high electricity tariffs, and concerns raised by industries and renewable energy stakeholders.
For the first time, MSEDCL proposed a reduction in power tariffs, but several organizations accused the company of indirectly increasing charges. The hearing witnessed intense deliberations on issues such as electricity supply for agricultural activities, the challenges faced by the solar energy sector, and the impact of the proposed tariff structure. The discussions highlighted how these changes could shape the state’s future power landscape.
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Industries voice concerns
While MSEDCL claims the new tariff structure will benefit consumers, industrial representatives raised serious concerns:
• Ishant Goyal (Chandrapur Industries Association): Highlighted that Maharashtra’s power tariffs are significantly higher than neighboring states, prompting industries to shift operations to Uttar Pradesh.
• Tausif Siddiqui (Solar Energy Investor): Warned that the proposed changes in Time-of-Day (ToD) rates could make solar investments unviable, potentially forcing industries to rethink their renewable energy plans.
• R.B. Goenka (Power Consumer Advocate): Criticized the delay in agricultural power subsidies and urged MSEDCL to focus on reducing power purchase costs instead of passing the burden onto consumers.
MSEDCL’s defence and future plans
MSEDCL Managing Director Lokesh Chandra, addressing the hearing via video conference, asserted that under the proposed tariff model, residential and industrial power costs would gradually decline over the next five years.
• Transition to Solar Power: With agriculture accounting for 30% of Maharashtra’s power demand, the Chief Minister’s Krushi Vahini Yojana aims to shift this load entirely to solar energy by September 2026, generating 16,000 MW of green power and reducing industrial tariffs.
• New Power Distribution Entity: A separate company will be established to cater to the agricultural sector, ensuring targeted solutions.
• Tariff Reduction Plan: Residential consumers using up to 100 units could see a 24% reduction in rates by 2030, while those in the 100-300 unit category might experience a 16% drop. The elimination of cross-subsidies is expected to bring uniform benefits.
Additionally, Chandra outlined MSEDCL’s plan to recover a ₹48,000 crore backlog over the next five years while achieving projected savings of ₹1.10 lakh crore.
Consumers raise concerns over proposed changes in ToD
Power consumers, industrialists and solar panel manufacturers raised serious concerns over the MSEDCL’s proposed changes to Time-ofDay (ToD) slots saying that it would severely impact solar power usage. During the public hearing, Saket Suri, Director of the All India Renewable Energy Association (AIREA), urged the Maharashtra Electricity Regulatory Commission (MERC) to reconsider the proposed changes.
“The proposed revisions in the Time of Day (ToD) pattern will lead to increased electricity bills for consumers. The new ToD pattern will reduce the benefit of solar power generation for the consumers from 20 hours to 8 hours. “The new tariffs of MSEDCL would restrict the solar power generated by consumers with installed solar panels to only eight hours. The consumers would only be able to use the power generated from solar between the 9am to 5pm slab under the ToD tariffs. This will eventually lead to an increase in their power bills. However, the MSEDCL claimed that it will bring down the power charges. These are very contradictory statements,” he said.
Girdhari Mantri, one of the petitioners and office-bearers of various associations, said residential as well as industrial and commercial category consumers who had already installed solar panels will not be able to get benefits of the solar panel installations. In addition to this, power consumers who are planning to install rooftop solar panels will also shy away from it if the new changes inTOD are implemented,” he said.
Uncertainty looms over power reforms
With 232 suggestions submitted and intense opposition from various stakeholders, Maharashtra’s power sector is at a crossroads. While MSEDCL claims its policies will drive long-term affordability, industrial and renewable energy players fear the new tariff model could stifle investments and competitiveness. As protests and legal challenges loom, the battle over Maharashtra’s power tariffs is far from over.
