For Maharashtra State Electricity Distribution Company (Mahavitaran) consumers using up to 100 units per month, the average tariff will decrease from Rs 7.31 to Rs 7.10. Over five years, the electricity tariff for this category is set to decline by 26 per cent. Prior to the issuance of the new multi-year tariff order, this rate stood at Rs 8.14 in 2025.
For consumers using 100 to 300 units, the tariff will decrease from Rs 13.17 to Rs 12.94. Earlier, this rate was Rs 13.23 in 2025. The Maharashtra Electricity Regulatory Commission (MERC) on Friday published its order regarding Mahavitaran’s multi-year tariff petition covering the financial years 2025–26 to 2029–30.
The proposal submitted by Mahavitaran for a reduction in electricity tariffs over this period has been approved. Electricity rates for all categories, including domestic, industrial, and commercial, are set to decrease gradually on an annual basis until 2030. Notably, there will be no increase in tariffs for any category.
The revised tariffs will come into effect from April 1. For High Tension (HT) industrial consumers, the tariff will decrease from Rs 10.78 to Rs 10.71. Previously, this rate was Rs 10.88 in 2025. Tariffs are set to decrease across all consumer categories, with further annual reductions scheduled for April 1 each year through to 2029–30.
In this order, MERC has fixed a tariff of Rs 9.50 per unit for the year 2026–27 for both HT and Low Tension (LT) electric vehicle (EV) charging stations. This tariff will remain constant until 2028–29, a move expected to boost EV adoption. Housing societies can establish LT charging facilities within their premises for EV charging. Concessions currently available to domestic consumers with rooftop solar power systems will remain intact. The new tariff structure will not disadvantage these consumers.
Mahavitaran stated that domestic consumers with smart meters who previously received an 80 paise per unit concession for electricity consumed between 9:00 AM and 5:00 PM will now receive an enhanced concession of 85 paise per unit during the financial year 2026–27. The Time-of-Day (ToD) concession for electricity consumption between 9:00 AM and 5:00 PM will continue for industrial and commercial consumers. These consumers will receive a 15 per cent rebate on tariffs from April to September, and a 25 per cent rebate from October to March during solar hours (9:00 AM to 5:00 PM). This will allow access to concessional rates during the crucial first production shift.
MERC had previously issued an order regarding Mahavitaran’s petition in late March last year. However, that order was subsequently stayed. Following a review petition filed by Mahavitaran, MERC issued a fresh order in June 2025. This June order was challenged in the Bombay High Court. Citing the principle of natural justice, the High Court set aside the June order.
In November, the Supreme Court issued directives instructing the Commission to issue a fresh order in adherence to the principle of natural justice and after fulfilling all necessary technical formalities. Accordingly, MERC has now issued its order, following a public hearing on Mahavitaran’s petition, upholding the principles of natural justice, and completing all technical requirements. The directives of the Supreme Court have been fully complied with, and clarity has now been established regarding electricity tariffs up to 2030.
