Hey folks! Big news from the Bombay High Court that’s got everyone talking. Let’s break it down.
The Maharashtra Electricity Regulatory Commission (MERC) passed a review order on June 25, 2025, that made big changes to the Multi Year Tariff (MYT) order from March 28, 2025. This decision didn’t sit well with many, including UltraTech Cement Limited and others, who felt it was made without proper consultation.
The original MYT order allowed solar energy saved during busy hours to be used anytime. The review changed this, limiting usage to specific times, which affected solar companies and their customers.
Hotels were initially placed under a lower price rate. The review moved them to a higher rate without asking those affected, leading to increased costs.
The review approved a large increase in MSEDCL’s spending on infrastructure, significantly impacting consumer prices.
The court found that MERC didn’t follow the necessary procedures. They didn’t ask for input from those affected, which is important for openness and fairness.
“The impugned review order is not passed to correct any clerical or arithmetical mistake…” – Justice B. P. Colabawalla
The court noted that MERC didn’t follow its own rules that require input from those affected before making such big changes.
The court canceled the review order, highlighting the need for consultation with those affected. MERC must now revisit the review process, ensuring all voices are heard.
MERC has to redo the review process, inviting suggestions and objections from those affected. Until then, the original MYT order from March 28, 2025, remains in effect.
MERC and MSEDCL have four weeks to challenge this decision in the Supreme Court if they choose.
The court decided that MERC's review order was invalid because it didn't include input from those affected. MERC must start over and listen to everyone involved before making changes.
