In a recent court case, NTT Global Data Centers and other companies challenged the Maharashtra Electricity Regulatory Commission (MERC) over changes to electricity prices. Let's dive into what happened.
The case was about MERC's decision to change the Multi Year Tariff (MYT) order dated March 28, 2025. This order affects how electricity prices are set and changed in Maharashtra. The changes were made without asking for input from everyone affected, which sparked the legal battle.
NTT Global Data Centers and others argued that MERC's review order on June 25, 2025, made big changes to the original MYT order. They claimed this was done without following the proper steps, which should have included asking the public for their opinions.
"The review order was made without fairness," they argued.
MERC and the Maharashtra State Electricity Distribution Company Limited (MSEDCL) defended their actions by saying that deciding on prices is a job that doesn't always require public hearings. They argued that the changes were necessary and within their authority.
The court, led by Justices B. P. Colabawalla and Firdosh P. Pooniwalla, looked into whether MERC was required to ask for input from everyone affected before making these changes. They decided that MERC should have allowed people to share their thoughts in the review process.
"The review order has big effects on everyone involved, including the customers," the court noted.
The court canceled MERC's review order and told them to ask for input from everyone affected before making any changes. Until then, the original MYT order from March 28, 2025, would remain in effect.
MERC and MSEDCL have been given four weeks to appeal the decision to the Supreme Court if they choose to do so. Meanwhile, the people affected have a chance to share their opinions on the proposed price changes.
