Residents of Maharashtra (excluding the island city of Mumbai and the western suburbs) will have pay 7 per cent more for using electricity as power regulator MERC has approved tariff hike proposed by the Maharashtra State Electricity Distribution Company Limited (MSEDCL).

The revised tariff will push the overall electricity bills by around 16.48 per cent, the average tariff increase will be only 6.91 per cent for consumers, after taking existing additional energy charges and fuel adjustment cost into account.

The tariff increase, which has come into effect retrospectively from 1st of August, would affect more than two crore consumers in Bhandup, Mulund, Thane, Navi Mumbai, and other part of the state.

The MERC defended the move, and cited power purchase expenses as one of the factors that forced it to approve the tariff increase.

The power regulator said in a statement, "The increase in tariff is primarily on account of rise in power purchase expenses, which have gone up primarily due to rise in fuel prices."

Power distribution firm MSEDCL had requested the Commission to approve average revenue requirement of Rs 50,750 crore for the financial year of 2012-13. But, MERC has approved average revenue requirement of Rs 48,926 crore.

Domestic consumers will have to pay Rs 3.36 and Rs 6.05 per unit under the category 0-100 units and 100-300 units, respectively. Under the category of 301-500 and 501-1000 units, domestic consumers will have to Rs 7.92 and Rs 8.78 per unit, respectively.

For non-domestic consumers, the tariff has been revised from Rs 9.15 to Rs 9.78 per unit.