Quashing the impugned multi-year tariff (MYT) review order passed by the Maharashtra Electricity Regulatory Commission (MERC), the Bombay High Court said that the MYT order, passed by MERC on March 28, 2025, will continue to be in force.

The ruling comes in the backdrop of several writ petitions filed by stakeholders in the renewable energy industry challenging the MYT review order dated June 25, 2025, passed by MERC without public consultation.

The petitions, filed by leading renewable energy developers and industrial associations, challenged MERC’s ex parte review decision, which altered several key aspects of the MYT Order, including renewable energy banking, hotel tariff categorization, and approvals for capital expenditure/annual aggregate review requirements by distribution companies. The Court found that these changes had “far-reaching consequences” for consumers and industry participants who should have been consulted before being passed.

The court ruled that the order was quashed for failing to comply with public consultation mandates as per Regulation 14 of the MYT Regulation, 2024, which pertains to the determination of tariffs, fees, and charges for transmission, distribution, and retail power supply businesses.

The judgment emphasized that, under Regulations 28(f) and 40(b) of the Transactions of Business Regulations, affected parties must be given notice and an opportunity to be heard before any review or amendment of a tariff order.

The High Court has directed MERC to rehear MSEDCL’s review petition only after issuing public notice and allowing all stakeholders to participate in the proceedings. Until MERC concludes the review afresh, the original MYT Order of March 28, 2025, will remain in force. Once the due process is followed, the aggrieved petitioner can also appeal to the APTEL.

The Court has stayed the operation of the Order for four weeks to enable MERC and MSEDCL to appeal before the Supreme Court of India.

Background

After MERC passed the MYT order on March 28, 2025, MSEDCL filed an interlocutory application requesting a stay of its implementation and enforcement, stating that it was in the interest of protecting consumers and stakeholders.

Following the interlocutory application filed by MSEDCL, MERC issued a stay on the MYT order without holding any public consultation.

Furthermore, MSEDCL filed a review petition on June 25, 2025, seeking amendments to the MYT order, and the Commission passed it without considering the opinions of stakeholders.

In September 2025, the Bombay High Court stayed the MSEDCL restrictions on the use of banked renewable energy for solar hours. It ruled that the older MYT framework, which allows renewable energy use at any time except during peak hours, would remain in effect.

Stating the impact of the restrictions on energy banking, solar project developers said that it could reduce solar savings by at least 10%.

This ruling is expected to have significant implications for Maharashtra’s power sector, reaffirming the requirement for transparency and stakeholder consultation in tariff-related decisions that affect consumers and renewable energy players.