Quick Summary: The Bombay High Court has canceled a review order by the Maharashtra Electricity Regulatory Commission (MERC) because it didn't ask for input from the people affected, impacting various energy companies and consumers.
Who’s Involved?
The main people in this case are O2 Renewable Energy VII Private Limited and several other energy companies against the Maharashtra Electricity Regulatory Commission (MERC) and the Maharashtra State Electricity Distribution Company Limited (MSEDCL). The case was heard by Judges B. P. Colabawalla and Firdosh P. Pooniwalla.
What Happened?
On June 25, 2025, MERC issued a review order that made big changes to the Multi Year Tariff (MYT) Order from March 28, 2025. This review order was challenged because it was issued without asking for input from the people affected, which goes against the basic rules of fairness.
Banking of Renewable Energy:
Originally, energy saved during peak hours could be used at any time. The review order restricted this, allowing energy saved during solar hours to be used only during those hours.
Hotel Tariff Categorization:
Hotels and lodging facilities were moved from an industrial category to a commercial one, leading to higher tariffs, without asking for input from the people affected.
Capital Expenditure Increase:
The review order approved a huge increase in spending from Rs. 31,749.83 Crores to Rs. 87,374.33 Crores, affecting consumer prices.
Petitioners’ Stand:
The petitioners argued that the review order was issued without hearing from the people affected, violating the Electricity Act's rules for being open and clear. They insisted that everyone affected should have been asked for their input before making such big changes.
Respondents’ Defense:
MERC and MSEDCL argued that setting tariffs is a job that doesn't require asking for input from the people affected. They claimed the review process didn’t need to follow the same public consultation process as the original MYT Order.
What Did the Court Say?
The court found that MERC failed to follow necessary steps, such as asking for input from the people affected, which is important for being open and clear. The judges emphasized that any changes to the MYT Order should involve the same level of public consultation as the original order.
Outcome:
The court canceled the review order and instructed MERC to conduct a fresh review with proper input from everyone affected. Until then, the original MYT Order will remain in effect.
