Mumbai – The industry, as well as the citizens, are facing a financial crunch because of the lockdown. Against this background, the Maharashtra Electricity Regulatory Commission (MERC) has recommended a power tariff cut off for the domestic, commercial and industrial users for the next five years. The reduction recommended by the MERC is 5-7% for domestic users and 10 to 12% for the industrial users. The power distribution companies will have to reduce the tariff accordingly. Anand Kulkarni, Chairman of the MERC, informed that the new rates would be applicable from 1st of April 2020.
In the current scenario, the decision for a rate cut has been taken to provide an impetus to the economic growth rate. Kulkarni, while making the announcement, said that this would provide the necessary encouragement to the businesses. The commercial rates will reduce in entire Maharashtra, except Mumbai, by 10 to 12%.
The rates cut for the domestic users will be 5 to 7% and the agricultural users will be 1%. In Mumbai, BEST will be reducing the prices by 7 to 8% for industrial users, 8 to 9% for the commercial users and 1 to 2% for domestic users.
Many parts in Mumbai are serviced by Tata Power and Adani Power. The MERC has instructed these companies also to reduce the rates. These companies will be reducing the power rates for the industrial users by 18 to 20%, commercial users by 19 to 20% and domestic users by 10 to 11%.
Kulkarni expressed hope that these reductions will bring major relief to the industry and businesses. As per the decision, the rate cut will be applicable for the next five years.