Quick Summary: The Bombay High Court canceled a decision by the Maharashtra Electricity Regulatory Commission (MERC) to change electricity prices without talking to those affected. The court stressed the importance of being open and getting public opinions in such decisions.
In March 2025, MERC had set a new plan for electricity prices for the upcoming years. However, MERC later made changes to this plan in June 2025 without allowing affected parties to share their thoughts. This led to many complaints from different groups, including Borosil Scientific Limited and others, challenging the decision.
Borosil Scientific Limited and other complainants pointed out that the changes were made without any input from those affected. The original plan had been set after a detailed process involving public notices and chances for people to give feedback. But the review skipped these steps, leading to significant unhappiness.
"The review order was made without informing Borosil Scientific Limited and other stakeholders," noted the court.
Banking of Renewable Energy: Originally, energy saved during peak hours could be used anytime, but the new order limited it to certain times. This change significantly affected solar companies and their customers.
Hotel Price Categorization: The way hotels were categorized was changed, leading to higher prices without any discussion.
Capital Spending Increase: The approved spending for infrastructure saw a massive rise, affecting consumer prices without their input.
The court, led by Judges B. P. Colabawalla and Firdosh P. Pooniwalla, canceled the review order, stating that MERC had broken rules of fairness by not consulting those affected. The court emphasized that any changes to prices must involve public consultation, as was done initially.
The matter has been sent back to MERC to reconsider the review petition with proper consultation from those affected. Until then, the original plan from March 2025 remains in effect. MERC and MSEDCL have four weeks to challenge this decision in the Supreme Court.
"Being open and fair is essential," the court remarked, highlighting the need for MERC to follow its own rules and the Electricity Act.
This judgment highlights the importance of involving everyone affected in decisions that impact them, ensuring that regulatory bodies remain transparent and accountable.
