This disparity in power tariffs is not just a matter of speculation. The findings were highlighted in the Economic Survey of Maharashtra 2023-24, which was tabled in the State Legislature in June 2024.
Nagpur: Consumers in Nagpur and several regions across Maharashtra, excluding Mumbai, are bearing the brunt of high electricity bills. This issue, frequently raised due to the State’s elevated power tariffs in comparison to other regions, now draws attention to the disparities within Maharashtra itself.
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Thursday 09 Jan. 2025
According to a report published by a leading local newspaper, a significant gap exists among the four major power distribution licensees operating in the state, including the State-run Maharashtra State Electricity Distribution Company Limited (MSEDCL).
This disparity in power tariffs is not just a matter of speculation. The findings were highlighted in the Economic Survey of Maharashtra 2023-24, which was tabled in the State Legislature in June 2024. Under the section ‘Average tariffs of electricity during 2023-24’, the survey compared the average power tariffs for four distribution licensees: MSEDCL (also known as Mahadiscom), BEST, Adani Electricity, and Tata Power.
The survey unveiled that MSEDCL’s tariffs for various sub-categories in the Low Tension-Domestic/Residential segment, specifically for consumers in the 0-100 units consumption slab, range from Rs 6.72/unit to as high as Rs 17.10/unit. The high tariffs, in comparison to the other licensees, are placing a considerable burden on households in Nagpur and other areas covered by MSEDCL.
In comparison, the range for the same category is Rs 3.48/unit to Rs 12.74/unit for BEST, Rs 5.98/unit to Rs 11.05/unit for Adani Electricity, and Rs 3.67/unit to Rs 11.33/unit for Tata Power. Thus, the tariff of MSEDCL is higher in the range of 74 paise/unit to 4.36/unit for LT Domestic/Residential consumers. For the LT-Commercial category, MSEDCL’s tariff is in the range of Rs 11.62/unit to Rs 17.97/unit. Whereas, that for BEST is in the range of Rs 9.97/unit to 11.46/unit For Adani Electricity, it is in the range of Rs 9.24/unit to Rs 10.10/unit. The tariff for this category is in the range of Rs 8.89/unit to Rs 10.62/unit for Tata Power.
Again, MSEDCL’s tariff for the said category works out to be the highest, with minimum Rs 1.65/unit to the maximum Rs 6.51/unit higher than other three distribution licensees. The per unit power tariff for some other categories is as follows: LT-Industry — Rs 7.69 and Rs 10.27 (MSEDCL), Rs 8.33 and Rs 10.87 (BEST), Rs 8.28 and Rs 9.37 (Adani Electricity), and Rs 8.01 and Rs 9.55 (Tata Power). HT-Industry — Rs 9.70 (MSEDCL), Rs 9.16 (BEST), Rs 8.98 (Adani Electricity), and Rs 9.17 (Tata Power); HT Commercial — Rs 15.03 (MSEDCL), Rs 10.45 (BEST), Rs 9.39 (Adani Electricity), and Rs 10.81 (Tata Power).
Since the data in the Economic Survey of Maharashtra is for the financial year 2023-24, it does not cover the latest tariff revision since April 2024. The tariffs have increased in varying degrees for power consumers from April 2024. If the basic tariff is this higher than other three distribution licensees within Maharashtra, the loading of wheeling charges, fuel adjustment cost, electricity duty, demand charges etc make for a recipe for discontent among the consumers in various segments.
But, then, a question arises — How could the other three distribution licensees supplying electricity to Mumbai afford to have tariffs lower than those of MSEDCL that serves a broad base of consumers in the State? According to R B Goenka, Chairman of Energy Cell of Vidarbha Industries Association and former Director of MSEB Holding Company, “The tariff of other distribution licensees in Mumbai is cheaper compared to that of MSEDCL since the number of agricultural consumers is very less in their areas.” And, agricultural consumers are being offered subsidy
This revelation raises serious concerns about the growing financial strain on consumers and brings into question the efficiency and fairness of power distribution across Maharashtra.
