Sudhir Budhe, Kaushal Mohota, Prashant Mohota and R B Goenka at the meeting organised by VIA on Wednesday.

 

 

 

When power tariffs are being lowered across the country with alternative options like solar energy and green energy, the Multi Year Tariff (MYT) Policy 2025 has raised the power tariffs by 8 per cent to 30 per cent across all categories including industrial, commercial, agriculture and residential consumers. Vidarbha Industries Association (VIA) has decided to submit a representation to Devendra Fadnavis, Chief Minister in a few days. VIA has also decided to initiate legal remedies to oppose the revised tariff order of Maharashtra State Electricity Distribution Company Limited (MSEDCL), which will adversely affect industrial and commercial power consumers. This was revealed in a meeting organised by VIA Energy Forum on ‘New MYT Policy and VIA Future Action Plan’ on Wednesday. Prashant Mohota, President of VIA, R B Goenka, Mentor, VIA Energy Forum, Sudhir Budhe, Solar Energy expert, Kaushal Mohota, Secretary and Ashish Chandarana, Independent Director, MSEB Holding Co Ltd, was present at the meeting. A large number of industrialists, industry representatives were present. Prashant Mohata further said that VIA took the lead in giving a collective response and representation strategy. All the industrial associations of the region like BMA, MIA, COSIA among others will join hands and voice their concerns to the State Government.

 

VIA will also be exploring various other options for representation before the Maharashtra Electricity Regulatory Commission (MERC) to address industry concerns. VIA will form Joint Industry Committee to strengthen collective advocacy. It will devise an action plan for compiling and submitting industrial feedback and impact data to regulatory authorities. Prashant Mohota elaborated that the new power tariff structure would significantly increase electricity costs for industries, already burdened with some of the highest power tariffs in the country. He also raised concerns about the potential impact of the revised Time of Day (ToD) tariffs on solar power adoption. The new ToD tariffs would extend the payback period for solar investments from three years to six years, discouraging industries from adopting renewable energy. He pointed out that MSEDCL’s petition proposes higher tariffs for industrial consumers while failing to address cross-subsidy issues.

 

Currently, industrial users can utilise solar power for nearly 20 hours a day. Under the new proposal, this will be restricted to just from 9 am to 5 pm, forcing industries to rely more on MSEDCL’s expensive electricity. VIA also called for opening up Maharashtra’s electricity distribution sector to private players like Tata, Adani, Torrent Power and Reliance, highlighting that these companies provide power at lower tariffs in Mumbai compared to MSEDCL’s rates. R B Goenka said that, the MSEDCL did not submit the detailed review petition and simply said that it will be submitted by end of April 2025. The MERC, without following the legal procedures and conditions to review the order, stayed the implication of order without giving the time period and stayed the order till the detailed petition is filed. Goenka said that he brought to the notice of MERC that the stay provided was illegal and requested the MERC to vacate the stay provided on the order issued in case No. 217 of 2024. Goenka said that, the stay order has been passed in violation of natural justice without issuing notices to any objector or consumers at large. He highlighted that the Commission also removed the ToD rebate of Rs 0.80 per unit during night hours from 10 pm to 6 am, for transition period, as approved by MYT order.

 

“The new provision will adversely affect the solar generation and use of bank power since the generation is in solar hours of 9 am to 5 pm and energy is banked during these hours only which was utilised by consumers during off peak slots and normal slots as per earlier ToD regim, but according to this revised provision, consumers will not be able to consume the banked energy and it will lapse in case of Distribution Open Access (DOA) or will be purchased at about Rs 3 per unit by MSEDCL in case of banked energy at the year end,” he further said. Ashish Chandarana via video conferencing said that, there should be collective efforts and all industrial associations in the region should form a joint forum and explore options to lower the power tariffs.