The Maharashtra Electricity Regulatory Commission (MERC) has directed the Maharashtra State Electricity Distribution Company (MSEDCL) to refund ₹6.8 million (~$78,351) in wheeling and transmission charges for the September 2021- May 2023 period for a wind power generator, with applicable interest.

Background

The petitioner, Serum Institute of India (SIIPL), installed captive generating projects by setting up 29 wind turbine generators and sought open access to its wind-generating units.

MSEDCL issued monthly bills to SIIPL for the period from September 2021 to May 2023. However, it levied and recovered the wheeling and transmission charges based on actual gross injection rather than actual energy drawal at the consumption end.

According to the Distribution Open Access Regulations, 2016, and the Practice Directions, MSEDCL must charge the wheeling and transmission charges on the actual energy drawn at the consumption end and not on the entire generation.

MSEDCL levied and collected ₹6.8 million (~$78,351) towards excess wheeling and transmission charges for the September 2021-May 2023 period.

The petitioner contended that in similar cases arising in 2017 and 2019, the Commission had directed MSEDCL to refund excess wheeling charges.

In January 2025, MERC directed MSEDCL to refund ₹14.3 million (~$171,600) to a wind power generator in excess of wheeling and transmission charges levied between April 2016 and May 2023 on Sahyadri Industries.

The distribution company contested SIIPL’s claim, saying that charges were levied on actual consumption at the drawal end, including compensation for losses.

The petitioner filed the current petition in August 2024, seeking a refund of the excess wheeling and transmission charges collected by MSEDCL. The Commission had directed MSEDCL to share billing calculation sheets with SIIPL.

The petitioner disagreed with the methodology adopted and MSEDCL’s explanation regarding the calculation of wheeling and transmission charges.

MSEDCL, through a mail dated April 9, 2025, stated that it would discuss the issue of levying excess wheeling and transmission charges with the petitioner and submit the report to the Commission. However, it did not make any such submissions.

Commission’s Analysis

MERC observed that MSEDCL had incorrectly applied wheeling and transmission charges under the open access regulations.

It reaffirmed the legal position established by the Appellate Tribunal for Electricity (APTEL) in its 2022 judgment, which clarified that wheeling charges must be based on actual energy drawal at the consumption end.

The Commission highlighted a series of its orders (from January 2023 to January 2025) in which similar issues were adjudicated, and refunds of excess charges were ordered.

It reiterated that wheeling and transmission charges must be computed on adjusted consumption units.

The Commission noted that no stay was granted to these orders despite MSEDCL’s challenge to the same before APTEL.

MERC directed MSEDCL to refund the wheeling and transmission charges collected from SIIPL, along with applicable interest, within one month.

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