Bills surged by staggering 110%

The Nagpur Residential Hotels Association (NRHA) has strongly condemned the current electricity tariff regime and Time-of-Day (ToD) regulations, terming them “grossly unfair, irrational, and anti-industry,” pushing the hospitality sector into severe financial distress.

NRHA President Tejinder Singh Renu stated that hoteliers across Nagpur invested heavily in solar energy systems in good faith, based on the policies and agreements with MSEDCL at the time. “Changing the rules mid-way and applying them retrospectively is nothing short of a breach of trust. It sends a damaging message to all investors supporting green energy,” he asserted.

Under the present ToD structure (9:00 AM to 5:00 PM), hotels are unable to utilize solar energy effectively due to their consumption pattern, which peaks during evening and night hours. NRHA’s detailed analysis of members’ electricity bills reveals a shocking reality, barely 4.6% of electricity consumption occurs during ToD hours. As a result, only 7.6% of solar power generated is utilized, while an alarming 92.4% is exported to MSEDCL. Electricity bills of hotels have surged by a staggering 110% following the change in ToD (Time of Day) timings, despite almost identical consumption levels.

Electricity bills of hotels have surged by a staggering 110% following the change in ToD (Time of Day) timings, despite almost identical consumption levels. For instance, a comparison of one hotel invoices from March 2025 and March 2026 clearly highlights the anomaly. In March 2025, consumption stood at 11,852 units, with a total bill of ₹2.15 lakh, while in March 2026, consumption was nearly the same at 11,840 units, yet the billing amount skyrocketed to ₹4.53 lakh. This drastic increase, without any significant rise in consumption, raises serious concerns about the revised tariff structure and its disproportionate financial burden on the hospitality sector.

Even more concerning is that instead of receiving fair compensation, hoteliers are being charged ₹1.92 per unit for the electricity they themselves generate. “This effectively converts a green investment into a recurring financial burden. Hotels are being penalized for adopting sustainable practices,” Renu added.

This issue was discussed at length during an executive body meeting held at Hotel Pritam. Thereafter NRHA has urged the State Government and MERC to immediately intervene, by classifying hotels under the industrial category and ToD hours be separately defined for the hospitality sector to enable night-time solar utilization, ideally from 10:00 PM to 12 noon.

NRHA further emphasized that aligning such reforms with Tourism Policy 2024 will ensure a fair, practical, and growth-oriented solution, benefiting both MSEDCL and the hospitality industry while safeguarding the future of renewable energy adoption.

NRHA executive body meeting was attended by Prakash Trivedi – IPP, Deepak Khurana and Afzal Mitha – Vice Presidents, Vinod Joshi – Treasurer, Vishal Jaiswal and Nitin Mehta – Joint Secretaries, Executive Body Members Dr. Ganesh Gupta, Vijay Chaurasia, Sharique Hafiz, Ajay Jaiswal, Chandrakant Chaurasia, Rajesh Dharmik & Amit Mudliar.

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