The Maharashtra Electricity Regulatory Commission (MERC) has issued an important order in Case No. 75 of 2025, addressing a review petition filed by Maharashtra State Electricity Distribution Co. Ltd. The order marks a key development in an ongoing dispute over electricity tariffs in Maharashtra, which has seen legal challenges and public involvement over the past year.
The issue began with the Multi-Year Tariff (MYT) Order released on March 28, 2025. This order fixed electricity tariffs for the period from FY 2025-26 to FY 2029-30. Soon after, MSEDCL filed a review petition, stating that there were errors in the calculations related to capital expenditure, power purchase costs, and agricultural sales projections. According to the utility, these issues could impact its financial stability if not corrected.
In June 2025, MERC allowed certain revisions based on MSEDCL’s claims. However, this decision was challenged in the Bombay High Court by several stakeholders, including solar energy associations and industrial groups. The High Court set aside the June order, stating that it was passed without giving all affected parties a proper hearing, which violated the principles of natural justice.
Following this, the matter reached the Supreme Court of India, which directed MERC to conduct a fresh or “de novo” review. The Commission then started a detailed process that included public consultations. Around 2,000 suggestions and objections were received from consumers, industry representatives, and other stakeholders. E-public hearings were also conducted in major locations such as Nagpur, Pune, and Navi Mumbai to ensure transparency and wider participation.
One of the main issues raised during the proceedings was MSEDCL’s claim of additional financial liabilities of about ₹11,751 crore. These costs were linked to various court and regulatory decisions, including payments to companies like Ratnagiri Gas and Power Pvt. Ltd. and Adani Power. MSEDCL argued that if these costs were not included in the revised calculations, consumers might face a sudden increase in charges through fuel adjustment costs.
The final order, issued on March 25, 2026, tries to balance the financial needs of the utility with consumer interests. While the revised revenue requirements apply for the full financial year, the approved tariffs will be effective from July 1, 2025. Since MSEDCL has already been charging these rates under an interim arrangement, there will be no immediate change in consumer electricity bills.
The order also introduces new rules related to renewable energy banking, which allows consumers to store excess power for future use. These rules will also be effective from July 1, 2025. For open-access consumers who may need to pay additional amounts due to these changes, MERC has directed MSEDCL to allow payments in installments, providing some financial relief.
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