In a major relief for power consumers across Maharashtra, the Bombay High Court has struck down the Maharashtra Electricity Regulatory Commission’s (MERC) June 2025 tariff hike order, potentially reducing electricity rates by nearly 20%. However, the final outcome will depend on whether the Supreme Court issues a stay on the High Court’s decision.
According to sources, MERC has already decided to challenge the verdict in the Apex Court, while the High Court has given both MERC and the Maharashtra State Electricity Distribution Company Limited (MSEDCL) four weeks to file their appeals. Until then, the July 2025 tariff rates will remain in effect.
The controversy dates back to March 2025, when MERC had initially proposed a 10% tariff reduction for consumers. However, MSEDCL requested the Commission to withhold the implementation, citing its intent to file a review petition. During the review process, consumer bodies and industry representatives were reportedly not allowed to participate. Subsequently, in June 2025, MERC reversed its decision and increased tariffs by around 10%, resulting in an effective 20% hike from July 2025 compared to the March proposal.
This led several industry associations and consumers to approach the Bombay High Court, alleging unfairness and lack of transparency.
With local body elections scheduled in December 2025 and January 2026, the issue has taken on political overtones. While MERC plans to appeal, MSEDCL — being a state-owned company — is unlikely to contest the High Court verdict, given the potential public backlash.
Residents and industry stakeholders across Nagpur and other regions have welcomed the court’s intervention. “Electricity bills have become an unbearable expense for common families. A 20% reduction will be a huge relief,” said consumer rights activist Anil Wadapalliwar.
Industrialists have also expressed optimism, noting that lower tariffs would help prevent businesses from relocating to neighbouring states. “If the hike is rolled back, it will strengthen industrial competitiveness and encourage units to remain in Maharashtra,” said a Hingna MIDC entrepreneur.
Consumers hope that the Supreme Court will uphold the High Court’s order, ensuring affordable electricity for households and industries alike. “Electricity is a basic need, not a luxury,” said Wardha Road resident Saurabh Suryawanshi. “We expect a fair and balanced judgment that protects public interest.”
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