Maharashtra CM Fadnavis announces a historic electricity tariff cut—the first in the state’s history. Starting July 1, domestic consumers will see a 10% reduction, with further cuts over five years. MERC’s revised order brings relief to households, businesses, and industries across Maharashtra.
Maharashtra Chief Minister Devendra Fadnavis announced a historic reduction in electricity tariffs across the state, marking the first such cut in Maharashtra’s history. Fadnavis, who also holds the Energy portfolio, hailed the Maharashtra Electricity Regulatory Commission (MERC) for approving the proposal submitted by the Maharashtra State Electricity Distribution Company (Mahavitaran) to reduce power tariffs, benefiting domestic, commercial, and industrial consumers alike.
Taking to social media platform X (formerly Twitter), CM Fadnavis stated, “Previously, petitions used to be filed for tariff hikes of around 10 per cent, but this time, a petition was filed for a reduction — benefitting domestic, industrial, and commercial consumers alike.” He emphasized that this move was unprecedented and people-centric, offering significant relief to millions of electricity users in the state.
The approved plan will bring down electricity rates in phases, starting with a 10 percent reduction in the first year. Over the next five years, the tariffs are expected to see a total reduction of up to 26 percent. This initiative is especially beneficial for the vast majority of domestic consumers—about 70 percent of whom consume less than 100 units per month. These users will see an immediate 10 percent tariff cut beginning July 1, 2025.
While the biggest beneficiaries are households with low electricity usage, there is also relief for middle-class domestic consumers and small to medium businesses. Consumers who use more than 100 units will receive a tariff reduction between 1 to 3 percent. Commercial and industrial categories will also benefit from these changes, albeit with smaller reductions in the initial phase.
This decision follows MERC’s earlier tariff announcement on March 29, which had raised concerns due to Mahavitaran’s reported financial deficit of ₹48,000 crore. Mahavitaran had originally sought a hike in tariffs to offset the deficit, but MERC took a different approach.
The Commission evaluated Mahavitaran’s financials and concluded that instead of a deficit, the company would actually see a surplus of ₹44,500 crore, thanks to improvements in procurement, demand forecasting, and increased renewable energy usage. Based on this assessment, MERC rejected the hike and instead approved a phased reduction, prompting Mahavitaran to file a review petition objecting to certain components of the earlier order.
After reviewing the concerns raised by Mahavitaran, the Commission agreed to amend its previous decision. The revised order not only acknowledges Mahavitaran’s revised projections but also supports its strategy to lower rates while managing long-term sustainability.
CM Fadnavis also highlighted the state government’s commitment to renewable energy through ongoing initiatives like the Mukhyamantri Saur Krushi Vahini Yojana 2.0, which aims to provide reliable daytime electricity to farmers. He noted that the growing focus on renewable energy in power purchase agreements would help bring down procurement costs in the future, enabling sustained low tariffs.
“This people-centric decision brings immense satisfaction. We are moving towards a more efficient, affordable, and sustainable power system for all citizens of Maharashtra,” Fadnavis stated.
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This landmark reduction is expected to ease the financial burden on millions of households, encourage industrial productivity, and strengthen small and medium enterprises. The move also aligns with the government’s broader goals of inclusive growth, rural electrification, and sustainability.
By turning a financial challenge into a consumer benefit, the Fadnavis-led administration has taken a significant step toward economic empowerment and energy sector reform. With further reductions planned over the next five years, electricity users across the state can look forward to greater affordability and more efficient service.
