Electricity tariff cut for Maharashtra businesses, people

03 Apr '20

2 min read

Pic: Shutterstock

Maharashtra recently announced an average of 8 per cent electricity tariff cut for the next five years to help businesses and people tackle the COVID-19 crisis. While the industry received the highest benefits, farmers have got a 1 per cent reduction in electricity costs, according to an official statement. The state has the largest number of COVID-19 cases.

The Maharashtra Electricity Regulatory Commission (MERC) has approved a move to cut tariffs by an average of 7-8 per cent as part of the move, which is first such measure in the past 10-15 years, the statement said.

For consumers served by private sector companies Adani Energy and Tata Power in Mumbai, industrial units will have their power rates slashed by 18-20 per cent, commercial establishments by 19-20 per cent and residential ones by 10-11 per cent, it said.

Industrial consumers in the state, excluding Mumbai, will enjoy a tariff cut of 10-12 per cent, while residential ones will see their rates go down by 5-7 per cent, a top business daily reported citing the government statement.

In Mumbai, state-owned Brihanmumbai Electric Supply & Transport Undertaking’s (BEST) tariffs for industrial consumers will go down by 7-8 per cent, while the same for commercial establishments will be down 8-9 per cent. Residential dwellings will have to make do with a 1-2 per cent reduction.

There will not be any burden on the state exchequer through this move, MERC chairman Anand Kulkarni said, hoping that the electricity distribution companies will be more commercially prudent to supply power to consumers at the lower rates.

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