Bombay HC Stays MERC Order Passed 'Without Public Consultation'

The Bombay High Court has stayed an order issued by the Maharashtra Electricity Regulatory Commission (MERC) in a case related to a review petition filed by the Maharashtra State Electricity Distribution Company Ltd (MSEDCL) under the Multi-Year Tariff (MYT) framework.

The court criticised the state power regulator for bypassing public consultation and failing to involve stakeholders before passing the order against MSEDCL’s review petition.

HC Order

“In view of the foregoing discussion, the impugned review order dated 25th June 2025 is hereby quashed and set aside. The matter is now remanded to MERC to decide the Review Petition filed by MSEDCL afresh after consulting all stakeholders and hearing and taking into consideration their objections, if any.”

The matter reached the court after several renewable energy companies sought intervention, alleging that the MYT order, issued on March 28, 2025, was passed without consulting the public and other stakeholders.

The written order noted that “the common thread in all these petitions was that the impugned review order is passed in breach of the principles of natural justice as well as the mandatory provisions of the Maharashtra Electricity Regulatory Commission (Transactions of Business and Fees and Charges) Regulations, 2022 (for short the ‘TOB Regulations, 2022’).”

What MYT Regulations Say 

Under Regulation 12 of the MYT Regulations, 2024, a public notice is required outlining proposed tariffs and related matters. Petitioners argued that since tariff matters directly affect both power consumers and generators, their participation was essential, and excluding them violated established procedures and trust.

According to case records, MSEDCL filed its tariff petition before MERC seeking approval of its Multi-Year Tariff and Aggregate Revenue Requirement (ARR) for FY2025–26 to FY2029–30. After public consultations and hearings, MERC issued the MYT order on March 28, 2025. Unsatisfied, MSEDCL filed an interlocutory application on April 1, 2025.

On April 2, 2025, MERC issued an interim order staying the implementation of the MYT order until MSEDCL formally submitted its review petition. Stakeholders alleged that the stay order was issued without hearing affected parties and that they were denied access to related proceedings.

MERC subsequently passed the impugned review order on June 25, 2025, prompting several renewable energy companies to challenge it before the Bombay High Court.