In a recent decision, the Bombay High Court canceled a review order by the Maharashtra Electricity Regulatory Commission (MERC) because they didn't talk to everyone affected by it. This decision affects the solar energy industry and electricity prices in Maharashtra.
The case involved several complaints against a review order by MERC, which changed an earlier Multi-Year Tariff (MYT) Order. The original MYT Order, issued on March 28, 2025, decided on electricity prices from 2025 to 2030. The review order, issued on June 25, 2025, was challenged because it was made without asking the opinions of those affected.
The people who complained, including the National Solar Energy Federation of India, said the review order was made without fair treatment. They argued that solar companies and electricity users weren't given a chance to share their opinions.
"The review order was made unfairly," the court said.
Using Stored Renewable Energy: The review order limited the time when stored solar energy could be used, cutting it down from 17 hours to just 8 hours a day.
Electricity Prices for Hotels: The order moved hotels to a more expensive electricity price category without asking them first, raising their costs.
Increased Spending on Infrastructure: The review allowed for an extra Rs. 55,624.50 Crores to be spent, which greatly increased the total spending and affected consumers' electricity bills.
The court, led by Judges B. P. Colabawalla and Firdosh P. Pooniwalla, said MERC didn't talk to the people involved, which they were supposed to do. The decision stressed the importance of being open and asking the public for their thoughts when setting electricity prices.
"The review requested by MSEDCL has big effects on everyone involved, including the consumers."
The issue is now sent back to MERC to look at the review again, this time with proper input from everyone involved. Until a new decision is made, the original MYT Order from March 2025 will continue to be in effect.
This decision highlights the importance of involving everyone affected in decisions about the energy sector. Solar companies and electricity users are encouraged to take part in the upcoming discussions to make sure their voices are heard.
This case shows the need to balance regulatory decisions with the rights of those affected, ensuring that changes in energy policy are made openly and with everyone's input.
