October 23, 2025

Historic Electricity Tariff Reduction in Maharashtra: A 26% Cut Over 5 Years

Electricity tariff reduction in Maharashtra
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In a groundbreaking move, Maharashtra is set to witness an unprecedented reduction in electricity tariffs for the first time in its history. The Maharashtra Electricity Regulatory Commission (MERC) has approved a proposal by Mahavitaran (MSEDCL) that will bring a 10% tariff cut in the first year, followed by a total reduction of 26% over five years. This decision marks a significant shift from the usual trend of annual tariff hikes, offering much-needed relief to consumers across the state.

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Who Benefits from the Tariff Reduction?

The electricity tariff cut will positively impact all consumer categories, including:
✅ Domestic households
✅ Industrial users
✅ Commercial establishments

Key Highlights of the Reduction Plan

  • First-Year Cut: 10% reduction in electricity bills.
  • Five-Year Plan: Progressive reductions leading to a total 26% decrease by the fifth year.
  • Maximum Relief for Low-Consumption Households: Nearly 70% of consumers who use less than 100 units per month will benefit from the highest 10% cut in the first phase.

Support for Farmers: CM’s Solar Agricultural Feeder Scheme 2.0

Alongside the tariff reduction, the state government is aggressively implementing the Chief Minister’s Solar Agricultural Feeder Scheme 2.0 to ensure daytime and reliable power supply for farmers. This initiative aims to enhance agricultural productivity by addressing long-standing power supply issues in rural areas.

Green Energy Push Driving Cost Savings

A major factor enabling this historic tariff reduction is Maharashtra’s increasing focus on renewable energy. Upcoming power purchase agreements (PPAs) are prioritizing green energy sources, which are expected to lower procurement costs and create sustainable savings. This shift not only benefits consumers but also aligns with the state’s environmental goals.

A Landmark Achievement for Maharashtra

Chief Minister Devendra Fadnavis hailed the decision as a “milestone for the state’s power sector”, emphasizing that this move will ease financial burdens for millions of households and businesses. He expressed gratitude to MERC for approving the proposal, calling it a “victory for all power consumers in Maharashtra.”

Conclusion: A New Era for Power Consumers

This unprecedented tariff reduction reflects the government’s commitment to affordable and sustainable electricity for all. With lower bills, reliable power for farmers, and a greener energy mix, Maharashtra is setting a new benchmark in power sector reforms.