Maharashtra: MERC Reiterates Simultaneous Use Of Rooftop 'Net-Metering' With Open Access

The Maharashtra Electricity Regulatory Commission (MERC), in its latest order, has reiterated its stand of allowing power consumers in Maharashtra to simultaneously use open access benefits in addition to receiving the benefits of ‘net-metering’ for their rooftop solar connections.

The order came when a Kolhapur-based trust named M/s Sou Sushila D. Ghodawat Charitable Trust (SSDGT) approached the state power regulator accusing Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) of depriving them of their ‘net-metering’ rights.

Case Details 

The trust was allegedly using Short-Term Open Access (STOA) through MSEDCL for its power needs and had also installed rooftop solar. However, the firm alleged that the state discom had been calculating their power bills on a ‘gross-metering’ system and not as per the ‘net-metering’ system. SSDGT alleged that this was a violation of the MERC (Distribution Open Access–Second Amendment) Regulations 2023. The party also demanded Rs 60.96 lakh with interest from MSEDCL for overcharging it.

MSEDCL, on its part, said that SSDGCT had not lawfully applied for green energy open access under MERC (Distribution Open Access–Second Amendment) Regulations 2023. It said that due to the alleged non-compliance with the green energy open access rules for approaching the right authority, SSDGCT’s Short-Term Open Access, approved by MSEDCL, was invalid.

MSEDCL's Stand 

“ As aforesaid STOAs are illegal or invalid under DOA Second Amendment Regulations, then consequently the claim or grievance made in said Petition is fundamentally illegal or misconceived,” MSEDCL’s response before the MERC read.

However, the MERC blamed MSEDCL for its alleged delay in the notification of Green Energy Open Access rules and DOA rules and said that the delays on the part of MSEDCL should not lead to deprivation of the genuine rights of solar rooftop consumers in the state.

MSEDCL said that as the dispute was for a period from January 2024, which was post-notification of DOA (Second Amendment) Regulations 2023, the consumer was entitled to the simultaneous use of rooftop net-metering with open access.

MERC also said that, as per SSDGCT, the DOA Second Amendment Regulations were notified on November 10, 2023 by the Commission, but their implementation was issued by MSEDCL on September 9, 2024, after a delay of 10 months.

MERC's Observations 

“In this regard, the Commission notes that MSEDCL has delayed the implementation of DOA (Second Amendment) Regulations 2023 and in fact only after direction of the Commission in Case No. 129 of 2024, MSEDCL has issued Circular on 9 September 2024 for implementation of DOA (Second Amendment) Regulations 2023. By delaying issuance of Circular, MSEDCL has not promulgated the correct procedures for availing GEOA. Moreover, MSEDCL has issued STOAs for the months of January, February, March, August, September and October-2024. Now MSEDCL itself taking stand that its approvals are invalid and hence benefit of net metering cannot be extended to SSDGCT. Clearly by virtue of its own wrong, MSEDCL is denying legitimate benefit accruable to SSDGCT.,” MERC said.

It also added, “Had MSEDCL implemented DOA (Second Amendment) Regulations 2023 in timely manner, SSDGCT could have availed Open Access by applying Central Nodal Agency, which evidently it has done in recent period after getting aware of the process. Therefore, in the opinion of the Commission, benefit of roof-top net metering cannot be denied to SSDGCT on account of MSEDCL’s failure.”

Final Order 

In its final order, it said, “As MSEDCL has already granted Open Access permissions to SSDGCT, as per provisions of the Regulations, it needs to allow simultaneous utilization of energy generated from rooftop solar plant. Hence, the Commission directs MSEDCL to pass on corresponding credit adjustments in electricity bills of SSDGCT. This ruling of the Commission is subject to outcome of Case No.232 of 2024.”

The state power regulator has asked the parties to sit together and reconcile the claim amount within 30 days of the order.