MERC dismissed cold storage associations' review petitions challenging MSEDCL's MTR tariff hike for HT/LT Agriculture (Others) category as not maintainable
Case filed by Maha Cold Storage Association seeking review of MSEDCL Tariff Order dated 31 March 2023 in Case No. 226 of 2022.
Cold storage associations sought review of MERC's 31 March 2023 MTR Tariff Order (Case 226 of 2022) for HT V(B) Agriculture-Others and LT IV(C) Agriculture-Others categories, alleging the approved tariff hike exceeded MSEDCL's proposed hike (0% for FY24 in HT category), violated Section 64 natural-justice/public-notice requirements, and was computed on an incorrect base tariff (including FAC), resulting in an actual 39% energy charge increase versus an approved 20% hike. They sought re-determination and interim relief to pay old tariffs pending review.
- Rejected the review petitions in both Case 98/2023 and Case 99/2023 as not maintainable; petitions dismissed in entirety
- Held review jurisdiction is narrow (Regulation 28(a) of MERC 2022 Transaction Regulations) - limited to new evidence or error apparent on face of record, not a re-hearing of merits
- Found MSEDCL's Public Notice dated 26 Jan 2023 did disclose proposed increases in demand and wheeling charges for HT Agri-Others (11-12%) even though energy charge showed 0% for FY24, so petitioners had adequate notice
- Held Commission is not bound by licensee's tariff proposal and can alter it; approved tariff still kept HT/LT Agri categories below Average Cost of Supply, consistent with National Tariff Policy 2016 cross-subsidy reduction mandate
- Rejected FAC-inclusion argument, holding FAC is a mandated component of billed tariff under MYT Regulations 2019 and correctly used as base for percentage-hike comparison
- Distinguished APTEL Judgment (Appeal 337/2016) as inapplicable since that case involved undisclosed re-categorisation, not a disclosed tariff hike
- Petitions dismissed - MSEDCL's 31 March 2023 tariff order stands unaltered for HT/LT Agriculture (Others) categories
- MSEDCL to continue billing per Commercial Circular dated 28 April 2023 implementing the original Tariff Order
- No re-determination of tariff or refund/adjustment to be made to cold storage members
- Associations retain option to pursue appeal before APTEL if aggrieved, as review remedy is exhausted
- Future MTR/tariff filings by MSEDCL should continue disclosing all tariff components (energy, demand, wheeling) clearly in public notices to avoid similar disputes
- • Confirms MERC's wide discretion to approve tariffs beyond a distribution licensee's initial proposal, provided the proposal (including all charge components) was disclosed in the public notice - C&I stakeholders must scrutinize full tariff tables, not just headline energy charge %
- • Reinforces that FAC-inclusive base tariffs are the correct baseline for computing hike percentages, relevant for any C&I category tariff-hike challenges
- • Signals continued cross-subsidization of Agriculture/PWW categories by industrial/commercial consumers as MERC moves categories toward cost-reflective tariffs under National Tariff Policy 2016
- • Narrow scope of MERC review remedy (Regulation 28(a)) means stakeholders should raise all objections comprehensively during MTR public consultation stage rather than rely on post-order review
This order is a reminder that MERC's review jurisdiction is deliberately narrow - it will not re-open tariff merits absent a genuine error apparent on record or new evidence. For C&I/agri-linked consumers and developers, the real leverage point is the public consultation stage of MTR/ARR proceedings, not post-facto review. The order also affirms MERC's discretion to exceed a discoms' proposed hike to meet National Tariff Policy cross-subsidy reduction targets, a trend likely to continue and worth factoring into long-term cost planning for cross-subsidizing categories.
Growthifye does not take responsibility for the accuracy of this information. Values are compiled from tariff orders published on the websites of State Electricity Regulatory Commissions and distribution licensees (plus CEA / MoP / Grid-India), parsed automatically and shown with their source. Always verify against the signed order before any commercial decision. This one-pager is a Vidura-assisted summary of the official order; the signed order prevails.