MSEDCL proposes tariff reduction, Maharashtra Electricity Regulatory Commission to take final decision
With agriculture driven by solar power, the cross-subsidy burden on domestic and industrial users can gradually end.
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Maharashtra government’s solar energy shift to benefit farmers and reduce electricity tariffs for consumers. (Source: File Photo)The Maharashtra Government’s decision to shift agriculture grids to solar energy will help reduce the cross-subsidy burden on domestic and industrial consumers, said Vishwas Pathak, Senior Independent Director, Maharashtra State Electricity Distribution Company Limited (MSEDCL), on Friday.
Addressing a press conference in Mumbai, Pathak said, “The CM Solar Energy Scheme 2.0 generating 16,000 megawatt is a reality. The entire agriculture sector will operate on solar power. This will ensure economically feasible power rates as solar power is cheaper in the long run. Secondly, farmers will get continuous power during the day time.”
“Today, power is highly subsidised for farmers. Apart from the state government, cross-subsidy is borne by domestic consumers and industries. Annual cross-subsidy for the agriculture sector allocated by the government works out to Rs 10,000 crore,” he added.
“Domestic consumers in the next five years may have to pay a reduced power tariff of Rs 5.87 per unit. This will be applicable for those consuming power up to 100 units per month. For those using 101 to 300 units, the tariff will be Rs 11.82 per unit,” the MSEDCL officer said, adding that they have proposed tariff reductions to the State Electricity Regulatory Commission to ease the financial burden on consumers.
MSEDCL customers consuming up to 100 units per month currently pay Rs 7.65 per unit. Whereas domestic consumers in the 101-300 unit category pay Rs 13.49 per unit.
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