Bombay High Court

Bombay High Court: MERC Must Consult Before Changing Electricity Tariff Rules

Updated
Nov 12, 2025 12:40 PM
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Summary: The Bombay High Court decided that the Maharashtra Electricity Regulatory Commission (MERC) must talk to everyone involved before changing electricity prices. This decision came after several companies, including AMPYR Renewable Energy Resources Twelve A Pvt. Ltd., challenged a review order that changed the rules without asking for public input.

Background of the Case

The case started when the Maharashtra State Electricity Distribution Company Limited (MSEDCL) wanted to change the Multi Year Tariff Order from March 2025. They filed a request to review it, which led to a new order in June 2025. However, this new order was made without asking other people involved, like AMPYR Renewable Energy Resources Twelve A Pvt. Ltd., which led to multiple legal challenges against it.

Key Issues Raised

  • Lack of Consultation: AMPYR Renewable Energy Resources Twelve A Pvt. Ltd. and other challengers said that the new order was made without asking those affected, which was unfair.

  • Significant Changes: The revised order changed how renewable energy could be saved and used, affecting solar companies like AMPYR Renewable Energy Resources Twelve A Pvt. Ltd. and their customers.

  • Increased Costs: The new order also raised spending on infrastructure, which could increase the prices consumers pay for electricity.

Court's Analysis

  • Regulations Ignored: The court noticed that MERC did not follow the rules that require public notice and consultation before making such changes.

  • Transparency Required: Highlighting a part of the Electricity Act, the court stressed the need for openness in MERC’s decision-making.

Conclusion and Order

The court, led by Justices B. P. Colabawalla and Firdosh P. Pooniwalla, canceled the June 2025 order. They instructed MERC to start over, making sure all parties involved, including AMPYR Renewable Energy Resources Twelve A Pvt. Ltd., get a chance to speak. Until then, the original March 2025 order stays in place.

"The stakeholders must be given an opportunity to present their submissions... This ensures transparency and fair play."

What's Next?

MERC must now hold a public meeting and consider all objections before making a new order. This decision shows how important it is to involve everyone in changes that affect them.