MERC and state discom imposed power tariff hikes by violating law: Cong MLA

Nagpur, Dec 9 (PTI) Congress MLA Nitin Raut alleged on Tuesday that the Maharashtra Electricity Regulatory Commission (MERC) and the state-run MSEDCL imposed repeated tariff hikes by violating legal procedures.

This move resulted in a serious financial burden on people and industries across the state, he said in the legislative assembly.

Raising the issue through a point of propriety in the Lower House of the state legislature, the former power minister said the Bombay High Court had "struck down MERC's June 25, 2025, order of tariff increase" and called it a "major embarrassment for the state government and its institutions." He alleged that MERC acted "under pressure of MSEDCL" and reversed its own earlier order, which reduced power tariffs, without conducting the mandatory public hearings.

"Shockingly, MERC admitted mistakes in its own order," he said, adding that a company shown earlier with a Rs 4,200-crore profit was later displayed with a Rs 41,000-crore loss to justify the tariff rise.

Raut said Mahavitaran has filed a fresh petition seeking permission to recover an additional Rs 11,750 crore from consumers, calling it "a direct raid on the pockets of common citizens." He said another hike in electricity charges could lead to industries shifting to other states, resulting in massive loss of employment and industrial output.

"The government, which had promised cheap electricity, has remained silent on the functioning of MSEDCL and its technical and distribution losses. Is this government silently accepting this hike?" he asked.

Raut urged the government not to file an appeal in the Supreme Court against the HC order; conduct a high-level judicial inquiry into the tariff decisions and the sudden escalation of losses projected by MSEDCL, and initiate strict action against officials responsible for causing public loss. PTI MR NSK