MERC Imposes Penalty On MSEDCL For Not Implementing Virtual Net-Metering

The Maharashtra Electricity Regulatory Commission (MERC) has now imposed a fine of Rs 1 lakh on MSEDCL. The state power regulator levied the fine on the state discom owing to its alleged non-compliance with the earlier orders of the commission. These orders were passed, directing MSEDCL to implement a virtual net-metering system in Maharashtra. 

The case came to the fore when three housing societies from Maharashtra approached the state commission, alleging reluctance of MSEDCL to implement virtual net-metering. The petitioners said that despite the Commissions’s orders on virtual-net metering, MSEDCL was not accepting applications for virtual net-metering. 

MSEDCL in its response before the forum accepted the non-compliance but submitted that it has challenged the MERC (Grid Interactive Rooftop Renewable Energy Generating Systems) (Second Amendment) Regulations, 2024 (impunged Regulations) before the Bombay High Court. 

Commission's Views 

The Commission, however said that since no stay order was passed inb the case from the High Court MSEDCL was destined to follow the impugned orders of the Commission. MERC said that it has repeatedly asked the state discom to implement the virtual net metering scheme and also work towards building a portal for accepting the applications. 

MERC said that it was amply clear that MSEDCL did not take the directive of the Commission seriously and not comply with it. Such non-compliance of directives and Regulations qualified for action under Section 142 of the Electricity Act, 2003, the Commission said. 

“In view of the above, the Commission has left with no other option but to deal with deliberate non-compliance of Regulations. Accordingly, the Commission imposed a penalty of Rs.1,00,000/- on MSEDCL for non-compliance with the directives and Regulations of the Commission. MSEDCL is directed to deposit the penalty amount within 7 days,” the Commission said. 

It also added, “Further, MSEDCL shall approve the applications of the Petitioners within (7) days from the date of this Order, failing which additional penalty of Rs. 6000/- per day shall be applicable.”