MSEDCL Proposes 23 Percent Reduction in Domestic Electricity Prices with Focus on Solar Power Generation

Maharashtra State Electricity Distribution Company Limited (MSEDCL) plans to generate 15,000-16,000 MW of electricity from solar energy in the coming years, with the goal of providing affordable power to consumers. In line with this, MSEDCL has submitted a proposal to the Electricity Regulatory Commission to set the power tariff for the next five years. The proposal includes a 23 percent reduction in domestic electricity prices over the same period.

MSEDCL spends 85 percent of its budget on power purchases, with the remaining 15 percent allocated to other costs. Currently, MSEDCL has an average of 2,000 MW of electricity available from solar energy during the day, a figure expected to rise in the future according to their plans, which will help reduce power tariffs. The new proposal aims to provide relief to consumers using up to 100 units of electricity.

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Suggestions and objections regarding the power tariff proposal can be submitted until February 17. A hearing on the proposal will be held on February 25 at 10:30 am at CIDCO Bhavan in Navi Mumbai. Additional hearings will take place in Pune, Nashik, Chhatrapati Sambhajinagar, Amravati, and Nagpur.

Concessions for industrial consumers will remain in place, with a discount of approximately Rs 2.40 for those using electricity during the day. While electricity prices are expected to increase by 8 to 10 percent annually, solar energy is expected to reduce prices over the next five years. As a result, the rate will decrease from Rs 9.45 to Rs 9.14. Solar power projects will lead to a reduction of Rs 5.87 per unit for consumers using up to 100 units, and a decrease of Rs 11.82 per unit for domestic consumers using 101-300 units over the next five years, said Vishwas Pathak, Independent Director, Mahavitaran.