Nagpur: Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) has implemented a significant increase in energy tariffs, affecting consumers across all categories, including residential, commercial, industrial, and agricultural sectors. The average hike in energy tariffs stands at 10 percent, effective from April 1, 2024. This decision is poised to have wide-ranging repercussions on consumers, particularly as temperatures rise during the summer months.
MSEDCL’s decision to raise energy tariffs by an average of 10 percent will directly impact consumers’ electricity bills. This increase is substantial and is expected to burden consumers financially. The rise in electricity bills comes at a time when temperatures are soaring, particularly during the summer season. This exacerbates the financial strain on consumers who rely heavily on electrical appliances for cooling and other necessities.
For residential consumers specifically, the hike in demand charges is notable. The demand charges have surged to Rs 128 for the fiscal year 2024-25, compared to Rs 116 in the previous fiscal year (2023-24). This indicates a significant increase in the fixed costs associated with electricity consumption for households.
The cumulative effect of increased energy tariffs and demand charges places a heavy financial burden on consumers across all sectors. This may lead to challenges in budget management for households, businesses, and industries alike.
The tariff hike could have ripple effects across various sectors of the economy. Businesses may face higher operational costs, potentially leading to price hikes for goods and services. Industries heavily reliant on electricity may experience decreased competitiveness in the market.
MSEDCL’s decision to raise energy tariffs by an average of 10 percent from April 1, 2024, is expected to have significant repercussions for energy consumers across Maharashtra. The increase in electricity bills, coupled with the rise in demand charges for residential consumers, adds to the financial strain faced by individuals and businesses, particularly during the summer months. It is imperative for consumers to adapt to these changes and explore strategies for efficient energy consumption to mitigate the impact on their finances.
According to Pratap Hogade, President of Maharashtra Electricity Consumers Association, he was against the hike in electricity tariffs. There is no need to increase electricity tariffs as Mahagenco and MSEDCL should increase their productivity, efficiency and contain the distribution losses. In this way, the electricity tariffs can be lowered by minimum Rs 2 per unit. The average cost of supply is Rs 9.29 per unit in Maharashtra, as compared to Rs 6 to Rs8 per unit in other states of the country, he said.
He further said that Mahagenco and MSEDCL were formed to provide better service and lower energy tariffs for the development of the state. These companies should control the distribution losses as they were suffering heavy losses every year. As the losses rise, MSEDCL would continue to hike energy tariffs in the years to come.
He further said that compared to other states in the country, Maharashtra has the highest electricity tariffs which should be lowered at the earliest in the interest of the common people.
Following will be tariffs for all categories
Category 2023 2024
Residential – BPL Rs 1.51/ unit Rs 1.56/ unit
1-100 units Rs 5.58/ unit Rs 5.88/ unit
101-300 units Rs 10.81/ unit Rs 11.46/ unit
301-500 units Rs 14.78/ unit Rs 15.72/ unit
Above 500 units Rs 16.74/ unit Rs 17.81/ unit
