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Credai Opposes MSEDCL’s 100% Hike in Electricity Connection Charges

19 Feb 2025

Real estate industry body Credai has opposed the proposed increase in electricity connection charges by the Maharashtra State Electricity Distribution Company Limited (MSEDCL), calling it excessive and burdensome for consumers. The proposed hike, which exceeds 100% of the current charges, is deemed unreasonable and not aligned with inflation rates, according to Credai Maharashtra. MSEDCL has filed a petition under the multi-year tariff (MYT) plan for FY26 to FY30, proposing an increase in service connection charges for low-tension single-phase new overhead connections from ₹1,840 to ₹3,800 per meter for loads between 0.5 kW and 7.5 kW. Similarly, for loads up to 0.5 kW, the charges would rise from ₹1,410 to ₹3,000. Credai has warned that this sharp increase will force developers to pass on the added cost to homebuyers, urging MSEDCL to consider gradual increments instead.

Homebuyers and consumer rights groups have also voiced concerns over the cost implications. Many buyers are unaware that connection charges are included in the overall price paid to developers, who often charge significantly more than the actual installation costs. A consumer rights activist pointed out that while installation costs typically range between ₹10,000 and ₹15,000, developers charge up to ₹50,000 for new connections. However, some energy experts argue that while the percentage increase appears significant, the absolute rise of around ₹2,000 may not drastically impact consumer demand. The deadline for objections to be submitted to the Maharashtra Electricity Regulatory Commission (MERC) was initially February 17 but has been extended to February 18, and Credai plans to present its objections before the deadline.
 

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