Maharashtra’s historic power tariff cut: 26% reduction over 5 years to benefit 70% consumers

In a major relief to electricity consumers, the Maharashtra government on Wednesday announced a phased reduction in power tariffs, with rates set to drop by 26 percent over the next five years. The first cut, of 10 percent, will take effect in FY 2026, marking the first time in the state's history that power tariffs are being slashed in this manner.

Chief Minister Devendra Fadnavis, who also holds the energy portfolio, said the decision follows an order by the Maharashtra Electricity Regulatory Commission (MERC). “For the first time in Maharashtra’s history, electricity tariffs are being reduced, not hiked. Starting with a 10% cut in the first year, tariffs will drop by 26% over five years in a phased manner. Grateful to the Maharashtra Electricity Regulatory Commission (MERC) for approving MSEDCL’s proposal, a move never attempted before.

In the past, petitions typically sought tariff increases of around 10%. This time, a petition for a reduction was accepted, offering relief to domestic, commercial, and industrial consumers.

Nearly 70% of consumers in the state use under 100 units and will be the biggest beneficiaries of the 10% cut in FY26."

The move follows a proposal by the Maharashtra State Electricity Distribution Company Limited (MSEDCL), also known as Mahavitaran, to revise the current tariff structure and provide relief to consumers across categories.