In a recent court decision, the Maharashtra Electricity Regulatory Commission's (MERC) review order from June 25, 2025, was canceled. This decision has important effects for everyone involved, including solar companies and consumers.
On March 28, 2025, MERC issued a Multi Year Tariff (MYT) order for 2025-2030, affecting electricity prices and rules in Maharashtra. This order was made after talking to various groups involved, ensuring openness and fairness.
MERC's review order, passed on June 25, 2025, made big changes to the original MYT order. These changes included:
Banking of Renewable Energy: Originally, energy saved during peak hours could be used any time. The review restricted this, allowing usage only during specific time slots.
Tariff Categorization for Hotels: Hotels were moved from an industrial to a commercial category, increasing their prices without asking the involved parties.
Increased Capital Spending: Approved spending on infrastructure jumped from ₹31,749.83 crores to ₹87,374.33 crores, impacting consumer prices significantly.
The court, led by Justices B. P. Colabawalla and Firdosh P. Pooniwalla, found that MERC failed to consult the involved parties before making these changes. This was against the rules and basic fairness.
"The challenged review order has far-reaching effects on all involved parties, including the consumers."
The court emphasized the need for openness, as outlined in the Electricity Act, 2003, and related rules. MERC was required to inform and consult affected parties before making such big changes.
The court has sent the matter back to MERC, instructing them to consult the involved parties before deciding on the review request by MSEDCL. Until then, the original MYT order from March 28, 2025, remains in effect.
This decision highlights the importance of involving all parties in regulatory processes, ensuring that changes are made openly and fairly.
"When the MYT order is passed after taking inputs of all the involved parties, it would be ridiculous to suggest that those very parties are not to be heard when the same MYT order is sought to be changed/reviewed."
This ruling is a reminder of the critical role that talking to everyone involved plays in regulatory decisions, ensuring that all voices are heard and considered before implementing changes that impact the public and industries alike.
Disclaimer: The names used in this report are fictitious and have been added for privacy reasons.
