MSEDCL Declares No Cash Payment for Power Bills over ₹5,000 from August 1
Pune, July 31, 2023: Maharashtra State Electricity Distribution Company Limited (MSEDCL) has announced a significant change in its payment policy. Starting August 1, all electricity bills over ₹5,000 will need to be paid through digital platforms, as cash payments for these amounts will no longer be accepted.
The rule, which aligns MSEDCL with the Maharashtra Electricity Regulatory Commission’s mandate for digital payment of bills above ₹5,000, was previously in effect only for Mumbai-based power companies like Tata Power and Adani Electricity.
Previously, MSEDCL consumers had the choice to pay their bills in cash or online for any amount. However, from the beginning of next month, only digital payments will be accepted for bills exceeding ₹5,000. The decision comes following the surge of digital transactions, even in rural areas that primarily make up MSEDCL’s consumer base.
MSEDCL provides electricity to approximately 2.70 crores of consumers across Maharashtra, making it one of the largest power distribution companies in India. As of now, around 1.10 crore customers (about 65% of the total) use online facilities to pay their electricity bills, bringing an average monthly revenue of ₹2,250 crores.
As MSEDCL spokesperson noted, “Online payment methods are beneficial for both consumers and MSEDCL. The company gets immediate money into its account, and the consumer gets a 0.25% discount up to ₹500 for paying bills online.” The spokesperson added that for agricultural consumers, the cash payment limit would be ₹10,000.
In Mumbai, of the 7,60,000 Tata Power consumers, 88% make online payments. Similarly, out of Adani Electricity’s 31,50,000 power consumers, around 80% pay their bills online, marking a significant shift toward digital payments.
