Quick Summary: The Bombay High Court has canceled a review order by the Maharashtra Electricity Regulatory Commission (MERC) because it did not follow the correct procedures. The court stressed the importance of being open and consulting with everyone involved when reviewing tariffs.
The Vidarbha Industries Association (VIA) and others filed complaints against the Maharashtra Electricity Regulatory Commission (MERC) and the Maharashtra State Electricity Distribution Company Limited (MSEDCL). They challenged a review order dated June 25, 2025, which changed an earlier Multi Year Tariff (MYT) Order from March 28, 2025.
The original MYT order set prices for electricity for the financial years 2025-2030. MSEDCL asked for a review, saying there was a need for changes. MERC's review order made big changes to the price structure, affecting solar energy banking and hotel price categories, among others.
"The challenged review order is not passed to fix any clerical or calculation mistake..."
Vidarbha Industries Association argued that the review order was issued without talking to everyone involved, going against the basic rules of fairness. They claimed it had major effects on consumers and solar energy companies.
The court, led by Justices B. P. Colabawalla and Firdosh P. Pooniwalla, found that MERC did not follow the required steps for consulting everyone involved. The court stressed that being open is crucial when deciding on tariffs.
"The interest of consumers, as a goal, can be clearly understood from the Electricity Act, 2003..."
The court canceled the review order and sent the case back to MERC. It instructed MERC to talk to everyone involved and be open before making a new order. Until then, the original MYT order from March 2025 will remain in place.
This judgment emphasizes the importance of involving everyone in decisions that affect them, ensuring that changes in tariffs are made in an open and fair way.
"The procedural and/or substantive provisions of law embody the principles of natural justice..."
This case shows the court's role in ensuring openness and fairness in decisions that affect the public, especially in areas that impact people's lives.
