High power tariff continues to remain major concern for trade and industry

 

 

 

 

The escalating energy bills have been a major concern for trade and industry in 2025, with high power tariffs pushing businesses to the brink. Experts warn that urgent intervention is needed to prevent widespread closures and job losses. The Maharashtra State Electricity Distribution Company Ltd’s (MSEDCL) Multi-Year Tariff (MYT) for the control period 2025–2030 has become a subject of intense legal and regulatory scrutiny. Originally intended to stabilize power costs for five years, it has instead sparked a significant legal battle between the utility and consumer groups. On March 28, 2025, the Maharashtra Electricity Regulatory Commission (MERC) issued a comprehensive tariff order after public hearings involving thousands of submissions.

 

This order was widely welcomed. However, the controversy began when MSEDCL filed a review petition shortly after, claiming “arithmetical and clerical errors” in the March order. On June 25, 2025, MERC issued a revised order that effectively reversed the gains, resulting in an average 20 per cent tariff hike and altered Time-of-Day (ToD) slots. Industry bodies like the Vidarbha Industries

 

Association (VIA) and solar developers challenged this in the Bombay High Court, arguing that such a substantial hike was pushed through without fresh public hearings or stakeholder consultation. The revised order significantly impacted the viability of renewable energy projects and increased the burden on industrial and domestic consumers. In November 2025, the Bombay High Court set aside the June 25 “hike order,” ruling that major tariff changes cannot be made “behind the backs” of stakeholders. MSEDCL appealed to the Supreme Court, which on November 17, 2025, remanded the matter back to MERC. The commission has been directed to conduct fresh public hearings and decide on the review petition within 12 weeks.