Mumbai, Aug 21 - In a major relief to the consumers of the state-run power distribution company, the Maharashtra Electricity Regulatory Commission (MERC) Thursday approved a nominal 4.2 percent hike in power tariff as against the company's proposed raise of nearly 37 percent.

The new rates of tariff will be effective Aug 1, according to an MERC order Thursday.

The Maharashtra State Electricity and Distribution Company Ltd (MSEDCL) supplies power to entire Maharashtra and also some pockets of Mumbai.

In Mumbai, there are other major private players like Reliance, Tata and BEST.

Of the overall 4.2 percent hike, only one percent has been imposed on the residential consumers. At the same time, the MERC has made no change in the below-poverty-line category of consumers who will continue to pay 66 paise per unit.