MERC held that MSEDCL's review of its 28-Mar-2025 MYT Order needs no public notice; stay on the new tariff continues till the review is decided, with FY24-25 tariff extended meanwhile
In the matter of Case of Maharashtra State Electricity Distribution Co. Ltd. seeking review of the MYT Order dated 28 March 2025 issued in Case No. 217 of 2024
MERC's MYT Order dated 28 March 2025 (Case 217/2024) had approved truing up for FY2022-23 & FY2023-24, provisional truing up for FY2024-25, and ARR/Tariff for the 5th control period FY2025-26 to FY2029-30. MSEDCL filed a review petition on 28 April 2025 under Section 94(1)(f) EA 2003 and Regulations 28/39/40 of MERC's Transaction of Business Regulations, alleging errors/inconsistencies in the Order that, if implemented, would cause grave and irreversible prejudice to consumers and stakeholders. MSEDCL sought suo-motu correction, modification, and an interim stay of the MYT Order pending disposal of the review.
- Commission held it has inherent/suo-motu jurisdiction under Section 64(6) EA 2003, Regulations 39 & 40 of Transaction of Business Regulations, and Regulation 12.3 of MYT Regulations 2024 to amend/revise tariff, relying on Supreme Court's UPPCL vs NTPC (2009) 6 SCC 235 ruling.
- Commission ruled that issuance of a public notice in the present review proceedings is NOT mandatory, since the original MYT case already underwent public consultation and Regulation 28 requires notice only to an 'opposite party' (none exists here).
- Stay on operation of the 28 March 2025 MYT Order, first granted via Daily Order dated 2 April 2025, was continued (per order dated 6 May 2025) until disposal of the review petition.
- Tariff approved for FY2024-25 under the earlier Tariff Order dated 31 March 2023 (Case 226 of 2022) was extended to apply from 1 April 2025 onward, pending disposal of the review.
- Intervention applications filed by other parties were heard along with MSEDCL's review petition on 6 and 9 May 2025; interveners were permitted to file written submissions.
- MSEDCL was directed to file written submissions with detailed computation of its claims and responses to Commission's queries; the matter was reserved for order.
- Stay on the 28 March 2025 MYT Order to continue until the review petition is finally disposed of by the Commission.
- MSEDCL to rely on its written submissions (filed post 9 May 2025 hearing) with detailed computations for the Commission's final review order.
- Interveners' applications to be considered together with MSEDCL's review petition in the final order.
- Consumers to continue billing under the FY2024-25 tariff (per Case 226 of 2022) until the review is resolved and the new MYT tariff/ARR for FY2025-30 is confirmed or modified.
- Commission to pass a reasoned order within a 'reasonable time' per Supreme Court guidance in UPPCL vs NTPC, addressing MSEDCL's claimed errors.
- Final annexures (station-wise energy charges/variable costs for FY2026-27 to FY2029-30) to be confirmed once review is disposed, as these numbers may change with corrections.
- • C&I/open-access consumers continue to be billed under the older FY2024-25 tariff (Case 226/2022) instead of the new FY2025-30 MYT tariff, so budgeting/PPA benchmarking should use the extended interim tariff for now.
- • Any cross-subsidy surcharge, additional surcharge or open-access charges embedded in the new (stayed) MYT Order are not yet applicable — developers should not assume the new charges apply until the review is resolved.
- • RE/storage developers signing PPAs referencing the FY2025-30 ARR (energy charges/variable costs shown in the annexure tables) should treat these figures as provisional until the review outcome is issued.
- • Prolonged uncertainty on the tariff order increases near-term forecasting risk for C&I open-access and captive consumers transacting with MSEDCL; monitor the final review order closely for retrospective adjustments.
This order is purely procedural — MERC has cleared the jurisdictional runway (no public notice needed) and kept the new 2025-30 MYT tariff frozen while extending the old FY24-25 tariff. C&I buyers and developers with MSEDCL exposure should treat current billing/PPA benchmarks as provisional and build in a true-up risk once the review petition is finally decided, especially since MSEDCL itself flagged 'root-level' errors that could materially alter ARR, cross-subsidy surcharge and open-access charges for the full control period.
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.