MERC lets AEML SEEPZ (ASL) charge, from 1 Apr 2023, the lower of TPC-D/AEML-D tariff as interim rate till its MYT petition is decided; orders power procurement via competitive bidding, not APPC.
Interlocutory Application filed by AEML SEEPZ Limited (ASL) seeking urgent listing of its Multi Year Tariff Petition and for seeking interim directions regarding provisional Tariff payable by its consumers.
ASL, a deemed distribution licensee for SEEPZ SEZ, filed its MYT Petition on 17 Feb 2023 for FY24-25 proposing to start operations from 1 April 2023. Earlier (Dec 2022), MERC had let ASL charge TPC-D's tariff as interim rate since TPC-D was then cheaper than AEML-D. With MTR proceedings underway for both discoms effective 1 April 2023, TPC-D's tariff was expected to overtake AEML-D's, making ASL's interim tariff non-competitive. ASL filed IA 25/2023 seeking urgent hearing and a fresh ad-hoc tariff equal to the lowest of the two parallel licensees' rates until final tariff determination.
- IA 25/2023 partly allowed.
- ASL permitted to levy provisional tariff/Schedule of Charges equal to the lowest of TPC-D and AEML-D tariffs, effective 1 April 2023, till final disposal of its MYT Petition.
- ASL's proposed power procurement from AEML-D at actual monthly APPC (average cost) rejected as contrary to marginal-cost rationale used in the Dec 2022 asset-transfer order.
- ASL directed to procure power only through competitive bidding under Section 63 of the Electricity Act / Regulation 19.3 of MYT Regulations, 2019.
- ASL given liberty to withdraw its current MYT Petition and refile a revised one after completing competitive bidding for power procurement.
- Secretariat directed to process ASL's separate petition for switchover/changeover protocol for hearing; consumer migration to ASL remains barred till that protocol is finalized.
- ASL to charge, from 1 April 2023, whichever of TPC-D's or AEML-D's tariff is lower, until its own MYT tariff is finally determined.
- ASL must complete preparatory steps: power procurement agreement approval, InSTS connectivity via STU, State Entity Registration with MSLDC.
- ASL to run a Section 63 competitive bidding process for power procurement instead of sourcing at AEML-D's average cost (APPC).
- ASL may withdraw pending MYT Petition and file a revised petition reflecting competitively-bid power costs.
- MERC Secretariat to list ASL's switchover/changeover protocol petition for hearing to formally integrate ASL as third licensee in SEEPZ.
- Consumer migration (switchover/changeover) to ASL remains prohibited until the changeover protocol is finalized in that separate proceeding.
- • C&I consumers in SEEPZ SEZ area will pay the lower of TPC-D or AEML-D tariffs under ASL from 1 April 2023, but this is only an interim arrangement, not a final approved tariff.
- • No consumer can switch to ASL yet—open access/change-over to ASL remains blocked until the switchover protocol is separately approved, so C&I buyers should not assume immediate optionality.
- • ASL's power procurement will now go through competitive bidding rather than APPC, which could alter its future landed cost and hence its final tariff versus TPC-D/AEML-D—developers evaluating SEEPZ supply should track ASL's revised MYT filing.
- • The order reinforces MERC's insistence on Section 63 competitive bidding for all new/deemed licensee power procurement, a precedent relevant to any similar deemed-licensee or captive/group-captive C&I structures in Maharashtra.
This is a narrow interim tariff fix, not a tariff determination—useful mainly for existing SEEPZ consumers watching short-term bill exposure. The bigger signal for developers is MERC's firm stance that even deemed/new distribution licensees must procure power through Section 63 competitive bidding, not average-cost pass-through; expect ASL's final MYT tariff to shift once bid-discovered costs are used. C&I players should hold off assuming SEEPZ switchover benefits until the changeover protocol case is resolved.
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.