MERC partly allows BEST's review of its MYT Order dated 28 March 2025, correcting 5 of 10 issues; rejects 2, clarifies 3 tariff-schedule points

BEST sought review of MERC's 28 March 2025 MYT Order (Case 207/2024) covering FY22-23/23-24 true-up, FY24-25 provisional true-up and 5th Control Period (FY25-30) ARR/tariff. BEST alleged errors in power purchase cost treatment (non-adjustment of Rs 200.50 Cr TPC-G surplus), wrongful disallowance of certain non-DPR capex, incorrect carrying-cost methodology, computational errors in TPC-G and SWPGPL power purchase costs for the control period, and sought clarifications on three tariff-schedule definitions (agri fixed-charge units, billing demand, interest on arrears).

• Allowed recovery/adjustment of Rs 200.50 Cr TPC-G revenue surplus (since refunded by TPC-G on 2 July 2025 as part of Rs 280.84 Cr) via PPCA in FY25-26; declined to direct holding cost payment by TPC-G without hearing it.
• Allowed Non-DPR capitalisation of Rs 14.63 Cr for 'Replacement of Old Conventional Meters' in FY22-23 true-up (justification now sufficient); rejected Rs 4.37 Cr GIS Bus Section claim (already rejected earlier, capitalised in FY19-20, not FY22-23) and rejected Rs 1.50 Cr/year non-DPR claim for FY24-25 to FY29-30 (no scheme details) but allowed BEST to re-file with justification in next MTR.
• Revised carrying/holding cost on true-up of FY22-23 & FY23-24 to Rs 81.25 Cr (from Rs (7.54) Cr), an impact of ~Rs 88.79 Cr, to align methodology with other licensees (e.g., ATIL Case 181/2024); to be recovered via next MTR Petition.
• Accepted error in TPC-G power purchase cost computation for FY25-26 to FY29-30 (linkage error in hydro variable cost, incorrect quantum for Unit-5/7); allowed correction with recovery/adjustment under PPAC as per actual TPC-G invoices.
• Rejected SWPGPL leap-year day-count correction for FY27-28 (365 vs 366 days) as not an 'error apparent'; a uniform methodology across the control period - variation to be claimed under PPAC.
• Clarified: (a) Fixed Charge units for LT V(A)/(B) as Rs/HP/month and Rs/kW/month respectively; (b) retained existing Billing Demand definition (0600-2200 hrs) as a conscious earlier decision; (c) interest on arrears applies for 'payment made beyond 90 days from date of billing' (no 180-day upper cap).

• • C&I open-access and HT/LT consumers of BEST may see minor tariff true-up adjustments via PPCA/PPAC in coming billing cycles due to TPC-G and SWPGPL cost corrections.
• • Clarified fixed-charge units (Rs/HP or Rs/kW per month) reduce billing ambiguity for agri-linked LT categories, relevant for mixed-use or agri-adjacent C&I loads.
• • Confirmation of 15% p.a. interest beyond 90 days (no 180-day cap) tightens payment discipline - developers/OA consumers with billing disputes should note extended interest exposure.
• • Recognition of carrying-cost consistency principle (aligning BEST with other licensees like Adani Transmission) may set precedent useful for future tariff true-up disputes across Maharashtra DISCOMs.