The unresolved electricity tariff dispute in Maharashtra—excluding Mumbai—has exposed a deeply flawed and consumer-unfriendly regulatory process. What began as Mahavitaran’s Multi-Year Tariff (MYT) proposal has devolved into a prolonged legal and administrative standoff, bouncing between the Maharashtra Electricity Regulatory Commission (MERC), the High Court and the Supreme Court, only to return once again to the Commission.
With MERC now announcing a third public hearing, fears are growing that fresh tariff hikes may be imposed on already strained consumers.
Mahavitaran had originally proposed fixing power tariffs for the five-year period from 2025 to 2030, claiming the plan was backed by a comprehensive long-term study. After a public hearing, MERC issued an order on March 28, 2025, reducing average tariffs by 10 per cent with effect from April 1—a rare instance of relief for electricity consumers. Mahavitaran, however, refused to accept the cut and promptly filed a review petition.
Acting on this review, MERC issued a fresh order on June 25, 2025, revising tariffs upward. This decision sparked strong opposition from consumer groups and solar energy stakeholders, who moved the High Court, arguing that the so-called “review” was effectively a full tariff revision carried out without mandatory public consultation.
They also flagged provisions that were allegedly detrimental to the solar power sector.
The High Court stayed the June order and directed Mahavitaran to issue bills strictly in line with the March 28 tariff.
Mahavitaran then escalated the matter to the Supreme Court, which asked MERC to take a fresh decision.
After months of litigation and regulatory confusion, MERC has now announced yet another public hearing—an implicit admission that the earlier process was seriously deficient.
Public hearing on February 10
MSEB Workers Federation president Mohan Sharma said the Commission has invited stakeholder submissions for a public hearing scheduled on February 10.
He noted that although a hearing was held on January 3, consumer representatives complained they were denied a fair and adequate opportunity to present their objections, raising serious concerns about transparency.
Excess recovery under scrutiny
One of the most contentious unresolved issues is the excess recovery from consumers. The higher tariffs fixed in June 2025 allowed Mahavitaran to collect inflated bills until November, when the High Court stay came into effect.
With the stay now operative, uncomfortable questions loom over whether—and how—Mahavitaran will refund the excess amounts collected.
MERC will also be forced to take a clear stand on compensating consumers for the additional financial burden imposed during this period.
As the issue heads into yet another round of hearings, consumers remain trapped in uncertainty—bearing the cost of regulatory reversals, prolonged legal battles, and a tariff-setting process that appears increasingly disconnected from public interest.
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