Bombay High Court

Bombay High Court: MERC Order Overturn for Lack of Public Consultation

Updated
Nov 6, 2025 8:41 PM
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Summary: The Bombay High Court canceled the review order by the Maharashtra Electricity Regulatory Commission (MERC) that changed prices without asking the public, affecting solar and wind energy companies.

Background: The Court Battle Begins

The Green Energy Association and others challenged a review order by MERC that changed the Multi-Year Tariff (MYT) Order from March 2025. This order affects renewable energy companies and their customers in Maharashtra by changing rules about energy storage and increasing prices without asking those involved.

What Was the Fight About?

The original MYT Order allowed energy saved during busy times to be used at any time. The review order limited this, affecting solar companies and their customers. Hotels were also put into a different category, leading to higher prices. The review order added a huge Rs. 55,624.50 Crores to spending, affecting customer prices.

"The challenged review order has big effects on everyone involved, including the customers."

The Court's Stand: Fairness Prevails

Justice B. P. Colabawalla and Justice Firdosh P. Pooniwalla ruled that MERC did not follow fair practices by not asking those involved before changing the prices. They emphasized the need for openness and asking the public for their opinion as per the Electricity Act, 2003.

Key Takeaways from the Judgment

  • Public Consultation is Crucial: The court stressed that any changes to prices need public input and feedback.
  • Transparency is Mandatory: MERC must ensure openness in its actions, as required by Section 86(3) of the Electricity Act.
  • Review Order Canceled: The court canceled the review order and told MERC to look at it again after asking everyone involved.

What Happens Next?

The court ordered MERC to share the Review Petition with stakeholders and make sure public notices are given. Until a new order is made, the original MYT Order from March 2025 will be followed.

"The matter is now sent back to MERC to decide the Review Petition filed by MSEDCL again after consulting all stakeholders."

Summary of the Verdict

The court's decision is a big win for solar and wind energy companies, ensuring they have a say in decisions about prices. The court’s focus on openness and fairness sets an example for future actions by regulators.

"Disclaimer: The names used in this report are fictitious and have been added for privacy reasons."