Electricity Becomes Cheaper: MERC Approves 26% Tariff Cut Over Five Years
Mumbai, June 25, 2025: In a landmark decision, the Maharashtra Electricity Regulatory Commission (MERC) has approved a proposal by Mahavitaran (MSEDCL) to reduce electricity tariffs across all consumer categories—residential, industrial, and commercial—for the next five years. This is the first time in the state’s history that electricity rates will drop consistently over such a period.
The reduction will offer significant financial relief to over 45 lakh farmers and urban consumers. Residential consumers using smart meters will receive an additional 10% daytime TOD (Time-of-Day) discount. Solar power-generating homes will also be incentivized under this new policy.
This reform aligns with the state’s broader energy strategy. Under the Chief Minister’s Solar Agricultural Feeder Scheme 2.0, the government aims to power daytime agricultural pumps using decentralized solar energy, with a capacity target of 16,000 MW by December 2026. This move will supply electricity at just ₹3 per unit on average.
MERC’s decision follows Mahavitaran’s plan to source 31,000 MW out of 45,000 MW from renewable sources by 2030. This shift is expected to save the utility ₹66,000 crore in procurement costs over five years, enabling the proposed rate cuts.
CM Devendra Fadnavis expressed gratitude to MERC, noting that for the first time instead of rate hike petitions, Mahavitaran filed for tariff reductions. Rates will be cut by up to 26% over five years, starting with a 10% drop in the first year. The move is set to benefit 70% of consumers who use less than 100 units monthly.
The government has reaffirmed its commitment to providing affordable, high-quality electricity as Maharashtra works towards becoming a $1 trillion economy.
