Nagpur, India: The Maharashtra State Electricity Distribution Company Limited (MSEDCL) has proposed a power tariff increase for the upcoming financial year. The hike aims to recover a revenue gap of ₹48,060 crore for previous years and cover projected short coming for the future.

Key Changes in Tariffs

• 0-100 Units: Slight reduction in charges from ₹4.71 per unit to ₹4.37 per unit.
• 101-300 Units: Increase of 9.95%, with charges rising from ₹10.29 per unit to ₹11.14 per unit.
• 301-500 Units: Tariff increase of 7.82%.
• 501-1000 Units: Rise of 7.19%.

Fixed charges and other costs, like wheeling charges, will also increase, making electricity bills higher for most users.

Here are he reasons for the Hike

MSEDCL says the increase is necessary to cover rising costs, including:

• Higher power purchase costs.
• Shortages in domestic coal supply.
• Increased transmission charges.

The company also plans to reduce subsidies for agricultural users, which affects other consumers.

Energy expert Mahendra Jichkar has criticised the proposal, calling it unfair since Maharashtra already has some of the highest electricity rates in the country. He said reducing distribution losses would have been a better way to manage costs.

MSEDCL is also pushing for Time of Day (ToD) tariffs, offering lower rates for electricity used during the day. However, this plan requires smart meters, which many households currently do not have.

The proposal is now with the Maharashtra Electricity Regulatory Commission (MERC) for review. If approved, the new rates will take effect from April 2025.