The Vidarbha Industries Association (VIA) expresses deep concern and disappointment over the recently announced Multi-Year Tariff Policy Review Order by the Maharashtra Electricity Regulatory Commission (MERC). This new tariff structure, which takes effect from FY 2025-26, will significantly increase the cost of doing business for industries in Vidarbha and across Maharashtra, especially those operating in continuous three-shift patterns.
1. Unjustified 10% Increase in Power Cost for Three-Shift Industries
As per preliminary analysis conducted by VIA’s Energy Cell, industries operating 24×7 or on three-shift models are set to witness a 8-10% increase in their overall electricity cost compared to March 2025 electric bills ( Last month of previous policy). This spike is attributed to a combination of:
• Substantial hike in Demand Charges, impacting industries irrespective of their actual consumption;
• Increment in Energy Charges, especially during peak hours, thereby burdening high-efficiency, high-capacity units;
• Changes in Time-of-Day (TOD) Tariffs, where off-peak incentives have been drastically curtailed and peak hour charges increased;
The President of VIA, Vishal Agrawal stated,
“This order contradicts the government’s Make in India and Atmanirbhar Bharat vision. Industrial growth needs tariff stability and predictability. Instead, we are facing a backdoor increase in effective tariffs, where initially MERC reduced tariffs and now in review completely changed it. This leaves no room for industry for absorbing such shocks in an already competitive market.”
He further added that the industries in the textile, engineering, and foundry sectors — especially in Vidarbha — are already struggling with global competition, logistics costs, and raw material volatility. The increase in power cost will now erode whatever slim margins remain and may lead to potential closures or capacity cuts.
2. Green Energy Investments Undermined: Solar Severely Discouraged
The second and more concerning aspect of the order is the severe discouragement to solar adoption through two major policy reversals:
• Prohibition of Nighttime Banking of Solar Power:
Until now, industries that invested in solar power plants — whether rooftop or ground-mounted — could bank their excess day-time generation and draw power at night. This was especially helpful for 24-hour manufacturing units. The new policy completely disallows night-time banking, forcing industries to either dump excess solar generation or invest heavily in battery storage — which is commercially unviable.
• Introduction of Grid Support Charges (GSC):
MERC has now levied a Grid Support Charge on the energy consumed through solar installations, especially for those above 1 MW capacity. This fee is to be paid for using the distribution infrastructure even when drawing banked or generated solar power. This defeats the very economic logic of going green, as industries are now being penalized for easing the grid’s load during daytime by generating clean power.
Vidarbha Industries Association’s (VIA) Demand
Vidarbha Industries Association urges MERC to :
1. Roll back the punitive demand and TOD tariffs, and ensure no more than CPI-based escalation in effective cost;
2. Reinstate night-time banking of solar energy to preserve the commercial viability of green power;
3. Scrap the Grid Support Charges or at least cap them till an independent impact assessment is conducted;
4. Hold stakeholder consultations, especially with MSMEs and large 3-shift units, before implementing such structural changes.
Industries in Maharashtra, especially in power-surplus regions like Vidarbha, deserve a progressive and participative tariff policy. VIA stands committed to protecting the interests of regional industries and will seek redressal through formal representation and, if required, legal channels
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