M/s Sahyadri Industries Ltd. filed a petition with the Maharashtra Electricity Regulatory Commission (MERC) seeking a refund of excess wheeling and transmission charges levied and collected by the Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) from April 2016 to May 2023. The company also requested a refund for an excess demand penalty levied in April 2016 and February 2017, along with interest.
Sahyadri argued that MSEDCL incorrectly applied wheeling and transmission charges based on actual generation instead of actual energy drawn at the consumption end. This resulted in an over-recovery of charges amounting to ₹1.43 crore. Additionally, Sahyadri claimed ₹45.18 lakh as a refund for excessive penalties imposed by MSEDCL. The company cited previous MERC orders and an Appellate Tribunal for Electricity (APTEL) ruling, which directed refunds in similar cases.
MSEDCL opposed the petition, arguing that claims before December 8, 2020, were barred by the limitation period. However, Sahyadri contended that its claims were valid due to a “continuing cause of action” and Supreme Court judgments supporting retrospective relief. The Commission reviewed past cases and found merit in Sahyadri’s claims.
MERC ruled in favor of Sahyadri, directing MSEDCL to refund the excess wheeling and transmission charges, including interest. The Commission also ordered the refund of excess penalties levied on demand charges. MSEDCL had already refunded ₹45.21 lakh and ₹2.62 lakh for undisputed claims, but the Commission mandated further refunds for the disputed period from April 2016 to December 2020.
Additionally, MERC instructed MSEDCL to proactively refund similar overcharges to all affected consumers, instead of waiting for individual petitions. This decision reinforces transparency and compliance with regulatory norms, ensuring that consumers are not unfairly charged due to incorrect billing methodologies.
