In a big win for solar energy companies, the Bombay High Court has overturned a review order by the Maharashtra Electricity Regulatory Commission (MERC) that had significant implications for the solar power sector. The court found that MERC didn't follow the necessary steps before making major changes to the Multi-Year Tariff (MYT) order.
The case involved multiple complaints from solar companies, including O2 Renewable Energy and National Solar Energy Federation of India, challenging MERC's review order dated June 25, 2025. This order changed the original MYT order from March 28, 2025, affecting prices and energy banking rules.
Energy Banking Rules Changed: Originally, energy saved during peak hours could be used anytime. The review order restricted this, allowing energy saved during solar hours to be used only during solar hours.
Tariff Changes for Hotels: The classification of hotels for pricing purposes was changed, leading to higher costs for them.
Increased Capital Expenditure: The review order approved more spending on infrastructure, raising the total approved amount significantly, which would increase consumer prices.
Lack of Stakeholder Consultation: The court found that MERC did not talk to the people involved before making these changes, which was unfair.
Procedure Not Followed: The MYT Regulations require public consultation before making such major changes, which MERC skipped in the review process.
The court canceled the review order and sent the matter back to MERC, telling them to follow proper procedures and consult with the people involved before making any new decisions. Until then, the original MYT order from March 2025 remains in effect.
MERC and MSEDCL (Maharashtra State Electricity Distribution Company Limited) have been given four weeks to challenge this decision in the Supreme Court if they choose to do so. Meanwhile, the people involved, including solar companies and consumers, are relieved as the original pricing rules continue.
“The decision ensures transparency and fair play in the determination of tariffs,” said the court, emphasizing the importance of involving everyone in regulatory decisions.
This judgment is a reminder of the critical role of fair processes in regulatory decisions affecting industries and consumers alike.
Disclaimer: The names used in this report are fictitious and have been added for privacy reasons.
