MSEDCL At Wrong End Of MERC Orders Again, Now Over Delay In Net Billing

MSEDCL or Mahavitaran, the key discom entity in Maharashtra outside Mumbai, has regularly been in the news for issues related to its tardy handling of renewable project related matters. Or efforts to slow down renewable adoption even in many cases by making it less attractive. In the latest instance of drawing regulatory censure for its (lack of) efforts, the MERC has directed it to process and execute a Net Billing connection agreement for Varun Beverages Limited (VBL), marking a key moment in the ongoing evolution of solar policy implementation in the state. VBL is the leading bottler for Pepsi in India, with multiple other businesses in the processed foods sector.

VBL, had proposed a 3.8 MW rooftop solar system at its Ahmednagar facility. The company submitted a Net Billing application in April 2024 under MERC’s Grid Interactive Renewable Energy Generating System (RREGS) Regulations. Despite clear statutory timelines, MSEDCL delayed processing the application, prompting VBL to file a petition in August 2024 at MERC.

At the core of the dispute were two key issues: the delay in executing the Net Billing Agreement and whether consumers like VBL could simultaneously avail Net Billing and Open Access (OA) . A provision introduced in the MERC Distribution Open Access (Second Amendment) Regulations, 2023.

During hearings held in September and December 2024, MERC expressed strong disapproval of MSEDCL’s prolonged inaction, citing procedural violations and delays surpassing 240 days. The commission emphasized that there was no legal stay on the regulations being contested by MSEDCL in the Bombay High Court, and thus full compliance was mandatory.

The commission ordered MSEDCL to process the application within seven days and complete similar pending applications in 30 days. While VBL’s Net Billing application was eventually approved in late September 2024, MSEDCL had yet to finalize the mandatory connection agreement by year-end. This step is critical to synchronize the renewable system with the grid and enable billing adjustments.

VBL insisted it met all eligibility criteria for Net Billing while operating under intra-state OA. It also disputed MSEDCL’s contention that it had applied under Green Energy Open Access (GEOA), asserting that the company had not sought permission under central GEOA rules.

In its final order, MERC upheld VBL’s right to avail both Net Billing and OA concurrently, provided regulatory compliance is met. The commission reiterated that failure to finalize agreements and process applications within the prescribed timelines could invite penalties and departmental inquiries.

The ruling underscores the importance of timely regulatory compliance as Maharashtra’s industrial consumers increasingly pivot toward renewable energy to reduce costs and emissions.