Maharashtra: Electricity Tariff To Increase Across Mumbai, Other Cities

The Maharashtra State Electricity Distribution Company (MSEDCL) has announced an increase in electricity rates. The hike ranges from 25 paise to 65 paise per unit, affecting approximately 2.8 crore residential customers.

The rate increase will impact customers in the eastern suburbs, Thane, Navi Mumbai, Kalyan, Vasai-Virar, and other regions of Maharashtra.

The rate hike is a response to a 2020 directive from the Maharashtra Electricity Regulatory Commission (MERC). The directive allows MSEDCL to recover the cost of expensive power purchases. Starting in January, MSEDCL will also implement a fuel adjustment charge (FAC). This charge will appear on customers’ bills.

The FAC varies based on electricity consumption. Customers using up to 100 units will pay an additional 25 paisa per unit. Those using between 101 and 300 units will pay an extra 45 paisa per unit. Customers consuming between 301 and 500 units will pay an additional 60 paisa per unit. Consumption of over 500 units will result in an extra 65 paisa per unit.

Small businesses will also see a rate increase of 30 to 40 paise per unit. Electric vehicle charging stations will now cost an additional 40 paisa. Municipal corporations will pay an extra 40 paisa for street lights. The FAC is expected to increase further to cover the cost difference in coal in the future.