MERC allows SEACO's plea; rules EHV infrastructure cost is MSETCL's duty and directs MSEDCL to grant Nil wheeling charges if twin conditions are met
Petition of M/s. Shriniwas Engineering Auto Components Pvt. Ltd. (SEACO) seeking enforcement of the Commission’s Tariff Orders, rectification of discriminatory levy of wheeling charges and action against MSEDCL for willful non-compliance.
SEACO, an HT consumer (Contract Demand 17,000-18,000 kVA) supplied at 22kV in Pune though EHV-eligible, sought enforcement of MERC's Tariff Order (30 Mar 2020) and Clarificatory Order (30 Apr 2020) granting Nil wheeling charges to EHV-eligible consumers stuck at lower voltage due to non-availability of EHV infrastructure. SEACO alleged MSEDCL selectively granted this relief to other similarly-placed consumers (from April 2020/Jan 2021) but denied it to SEACO despite meeting the twin eligibility conditions, and sought refund with interest plus penal action under Sections 142/146 against MSEDCL for willful non-compliance. MSEDCL contested jurisdiction, res judicata, limitation, and argued SEACO had itself undertaken (2011-2014) to build EHV infrastructure at its own cost and failed to do so, making it ineligible.
- Petition allowed; SEACO entitled to benefit of Nil wheeling charges (applicable to EHV consumers) if it meets twin conditions from MYT Order dated 30 March 2020 and Clarificatory Order dated 30 April 2020
- Ruled that under Supply Code Regulations 2021 (Regulation 4.2), cost of EHV network for connecting EHT-eligible consumers must be borne by the Transmission Licensee (MSETCL), not the consumer
- Held that SEACO's 2011 undertaking (given under repealed 2005 Supply Code Regulations) to build EHV infrastructure at its own cost cannot bind it after Supply Code Regulations 2021 shifted this obligation to MSETCL
- Directed MSETCL to set up the required transmission network and connect Petitioner to the EHV network on a priority basis; copy of order to be forwarded to MSETCL
- Directed MSEDCL to verify compliance with twin conditions (non-availability of requisite voltage level + billing demand maintained at requisite voltage level for ≥9 months/75% of bills in a financial year) and grant lower wheeling charges accordingly, with interest per Section 62(6) if refund is due
- Left computation/quantum disputes on refund to be raised before CGRF; did not impose any penalty under Sections 142/146 on MSEDCL
- MSEDCL to verify SEACO's compliance with twin conditions (voltage non-availability certification + billing demand criteria) and apply Nil wheeling charges accordingly
- MSETCL to prioritize setting up EHV transmission network/connection for SEACO
- MSEDCL to coordinate with MSETCL for provisioning EHV connectivity
- Any refund due to be paid with interest at bank rate as per Section 62(6) of Electricity Act, 2003
- SEACO to approach CGRF for any dispute on quantum/computation of refund
- Commission Secretariat to forward copy of order to MSETCL for compliance
- • C&I consumers stuck at lower voltage due to licensee's infrastructure delay can claim Nil/lower wheeling charges under 'twin conditions' regardless of old undertakings given under repealed Supply Code Regulations
- • Old consumer undertakings (pre-2021) to self-fund EHV/EHT infrastructure are no longer enforceable; cost obligation now rests with the Transmission Licensee under Supply Code Regulations 2021
- • Distribution licensees cannot selectively extend tariff relief only to consumers who litigate — benefit must be uniformly applied to all eligible similarly-placed consumers
- • Open-access/EHV-eligible developers awaiting connectivity should press both DISCOM and STU/transmission licensee, citing this precedent, to expedite EHV infrastructure and unlock lower wheeling charges
This order reinforces a now well-settled MERC line: consumers cannot be penalized for a licensee's infrastructure failure, and old self-build undertakings die with the regulations under which they were given. For C&I buyers stuck at lower voltage awaiting EHV/EHT connectivity, this is useful precedent to demand Nil/lower wheeling charges retrospectively and push STU/DISCOM coordination, though refund quantification still routes through CGRF, causing delay.
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.