Nagpur: Is it a power reform or a financial burden? The Maharashtra State Electricity Distribution Company Limited (MSEDCL) is facing sharp criticism from renewable energy experts over its Multi-Year Tariff (MYT) petition submitted to the Maharashtra Electricity Regulatory Commission (MERC) last month. The experts claimed that MSEDCL’s proposals, if accepted by MERC, will hit majority consumers generating solar power, and also general consumers in one way or another.
Tariff hike instead of reduction?
Addressing a press conference in Nagpur, members of the All India Renewable Energy Association (AIREA) accused MSEDCL of misleading consumers to cover up its inefficiencies. “The Adani, Ambani, and Tata power distribution companies have all submitted MYT petitions indicating tariff reductions over the next five years. However, MSEDCL, which already has higher tariffs than other discoms in the State and neighbouring states, is proposing further hikes instead of reducing rates,” said Girdhar Mantri, AIREA Advisor.
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Friday 14 Feb. 2025
Solar consumers to face major setbacks
Experts highlighted that both solar and non-solar consumers would suffer under the proposed Time of Day (TOD) metering and revised billing structures.
TOD expansion:
• Currently applies to consumers using over 20KV, excluding residential and agricultural users.
• MSEDCL proposes lowering the threshold to 10KV, affecting industrial, commercial, and large residential consumers.
Reduction in solar usage benefits:
• Presently, solar power users benefit from the energy they generate for 20 hours a day.
• MSEDCL now proposes cutting this to just 8 hours, severely reducing solar savings.
Sudhir Budhe, another AIREA Advisor, pointed out how MSEDCL’s revised telescopic billing would increase costs for solar consumers.
Current system:
• If a consumer uses 520 units, with 400 units generated from solar and 120 units purchased from MSEDCL, the 120 units are billed under lower tariff slabs.
Proposed system:
• The 400 free solar units would be counted in the initial low-cost slab.
• The 120 purchased units would be charged under higher slabs, leading to higher bills despite solar generation.
AIREA officials also criticized MSEDCL’s proposal to increase fixed charges for both High Tension (HT) and Low Tension (LT) consumers:
· HT consumers: Fixed charges may rise from 75% to 85%.
· LT consumers: Proposed hike from 40% to 60%, a 50% increase that would affect a majority of residential users.
Consumer backlash & regulatory scrutiny expected
With these proposed changes, MSEDCL’s MYT petition has sparked outrage among experts and consumers alike. While MERC is yet to decide, AIREA has urged regulatory authorities to reject these anti-consumer proposals and push MSEDCL towards more sustainable tariff models.
The final decision on the tariff structure will determine whether Maharashtra moves towards cleaner, more affordable energy—or burdens its consumers further.
