MERC dismisses VIA's plea for one-year grace period on kVAh billing and rejects refund claim for MSEDCL HT consumers
Case of Vidarbha Industries Association seeking removal of difficulty in implementation of MYT Order of Maharashtra State Electricity Distribution Company Limited in Case No 322 of 2019 dated 30 March, 2020
MERC's MYT Order dated 30 March 2020 (Case 322 of 2019) introduced kVAh-based energy billing for HT consumers of MSEDCL from 1 April 2020, replacing kWh billing. VIA argued new tri-vector meters recorded instantaneous kVAh that was 0.1%-18% higher than kVAh calculated from monthly kWh and RkVAh (lag/lead) values, due to variable power factor loads and harmonics. VIA sought a one-year grace period (April 2020-March 2021) to install instantaneous PF correction equipment, requested billing on the old calculated-formula basis during this period, a refund of excess amounts paid, and alleged discrimination versus solar net-metered consumers.
- Petition (Case 165 of 2020) dismissed in entirety.
- Rejected VIA's request for one-year grace period (April 2020-March 2021) for kVAh billing based on calculated formula instead of actual meter reading.
- Held Commission had already given ~18 months' notice (MTR Order dated 12 Sept 2018, extended via Order dated 2 Jan 2020) before kVAh billing became effective 1 April 2020, so COVID-19 lockdown argument was not accepted for the full period.
- Ruled no change to kVAh billing methodology; therefore no basis for revising bills or granting refunds.
- Rejected discrimination claim between normal HT consumers and solar net-metered HT consumers, citing clarificatory Order in Case 79 of 2020 (30 April 2020) which mandates kWh-based netting converted to kVAh via billing PF.
- Directed BEST Undertaking to submit reasons for non-replacement of HT meters and an action plan within one month, expressing displeasure at non-compliance with kVAh metering directives.
- No revision of kVAh billing methodology for HT consumers; actual meter-recorded kVAh continues to apply.
- HT consumers must maintain PF and harmonics within prescribed limits (IEEE 519-1992/2014 standards) using fixed/automatic/real-time correction equipment as per load profile.
- BEST Undertaking directed to submit reasons for non-compliance and an action plan to replace HT meters for kVAh-compatible billing within one month of this Order.
- Distribution Licensees directed to extend lockdown-period PF relief (per Order dated 13 Nov 2020 in Case Nos. 131,135,143 & 144 of 2020) to eligible consumers in their license areas for April/May 2020 billing.
- Eligible consumers under lockdown relief get revised bills with refund credited in equal instalments in upcoming bills, based on 'Reference PF' methodology.
- Solar rooftop HT consumers to continue billing per Case 79 of 2020 clarificatory Order: kWh-based netting converted to kVAh using monthly billing PF.
- • HT C&I consumers of MSEDCL (and other discoms) must proactively invest in instantaneous/automatic PF correction and harmonic filtering equipment, as no further billing relief on kVAh methodology will be granted.
- • Variable-load industries face real bill impact (up to ~18% higher units) from kVAh billing on instantaneous meters versus average-PF calculation; budgeting and load studies are essential.
- • Rooftop solar HT consumers get kWh-based net-metering treatment (converted to kVAh via billing PF) - a distinct and more favourable methodology than direct meter-based kVAh billing for non-solar consumers.
- • Consumers who faced genuine PF deterioration solely due to COVID-19 lockdown inaccessibility (April/May 2020) may still claim targeted relief via Reference PF mechanism, but this is a narrow, past, one-time dispensation, not open-ended.
This order reinforces MERC's firm stance that kVAh billing, notified nearly two years in advance, is final and consumer-side PF/harmonic compliance is non-negotiable. C&I buyers and developers advising HT clients in Maharashtra should treat kVAh exposure as a fixed cost risk requiring APFC/real-time reactive compensation investment now, not a regulatory pressure point to contest. The narrow lockdown-PF relief is the only concession available and is time-bound to Apr-May 2020.
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.