MSEDCL’s five-year tariff plan faces backlash as consumers and industry leaders fear economic fallout
Team Clarion
MUMBAI – The Maharashtra State Electricity Distribution Company Limited (MSEDCL) has sparked widespread outrage after proposing an annual electricity tariff increase for the next five years. The proposal, submitted to the Maharashtra Electricity Regulatory Commission (MERC), has drawn sharp criticism from powerloom associations and electricity consumers, who argue that the move could devastate industries and households already struggling with high costs.
Tirupati Sripuram, president of the Bhiwandi Powerloom Mazdoori Beam Weavers and Owners Association, has been at the forefront of the opposition. In a strongly worded letter to MSEDCL, Sripuram warned that the proposed hike would cripple industries and burden consumers across the state.
“Electricity tariffs in Maharashtra are already the highest in the country,” Sripuram stated. “This has placed immense financial pressure on industrial, commercial, domestic, and agricultural consumers. Any further increase will be unacceptable and disastrous.”
Sripuram highlighted the plight of the powerloom industry, which has already been hit hard by previous tariff hikes. “More than one lakh powerloom units in Bhiwandi have shut down due to last year’s tariff increase,” he said. “The rising electricity prices have made Maharashtra the most expensive state for industrial production. Many businesses are shifting to other states where electricity is cheaper.”
He warned that the proposed hike could push the industry to the brink of collapse. “The industry is already operating at a loss. Further tariff hikes will be catastrophic, and there is no assurance that tariffs will decrease after five years,” Sripuram added. “Historically, once electricity rates go up, they rarely come down.”
The proposed tariff hike has also alarmed domestic consumers and small business owners, who fear that rising electricity bills will strain their budgets further. A Bhiwandi-based factory owner, who wished to remain anonymous, shared his concerns.
“We are already struggling with high costs,” he said. “If the tariff increases again, we will have no choice but to shut down or relocate. This is not just about businesses; it’s about thousands of livelihoods at stake.”
Consumer advocacy groups have joined the chorus of dissent, urging MERC to reject the proposal. “The burden of MSEDCL’s inefficiencies should not fall on consumers,” said a spokesperson for a local consumer rights organisation. “The commission must prioritise the welfare of the people and ensure that any tariff adjustments are fair and justified.”
Sripuram also raised questions about MSEDCL’s financial practices, pointing out that private power companies in the state are thriving while the public utility continues to report losses.
“Why are companies like Tata Power, Adani Power, Best Power, and Torrent Power making profits while MSEDCL is in financial trouble?” he asked. “The primary reasons for MSEDCL’s losses are mismanagement, negligence, power theft, and corruption.”
He accused MSEDCL of failing to address internal inefficiencies and instead passing the burden onto consumers. “Instead of curbing power theft and improving operations, the company is attempting to burden consumers with higher tariffs,” Sripuram said.
The Bhiwandi Powerloom Mazdoori Beam Weavers and Owners Association has called on the Maharashtra government to intervene and review the tariff proposal.
“The state government must act swiftly to prevent this tariff increase,” Sripuram demanded. “If no action is taken, the powerloom sector and the broader industrial community will face an unprecedented crisis.”
The association is also advocating for an independent audit of MSEDCL’s financial practices and a comprehensive strategy to address the root causes of its losses. “A fair and transparent review process is essential to protect the interests of Maharashtra’s consumers,” Sripuram emphasised.
As the debate over the proposed tariff hike intensifies, the Maharashtra government faces mounting pressure to balance MSEDCL’s financial needs with the economic well-being of the state. With thousands of jobs and businesses at stake, stakeholders are urging a thoughtful and transparent approach to prevent further hardship.
For now, the powerloom industry and consumers across Maharashtra remain on edge, hoping for a resolution that safeguards their interests. As Sripuram put it, “This is not just about electricity bills; it’s about the survival of an entire industry and the livelihoods of millions.”
