The Maharashtra Electricity Regulatory Commission (MERC) has issued its much-awaited final review order on MSEDCL’s tariff petition, giving big relief to household consumers and farmers. After extensive public hearings and thousands of stakeholder submissions, the commission has reaffirmed its commitment to transparent regulation, consumer protection, and sustainable energy growth. This order, covering the period FY 2025–26 to FY 2029–30, ensures that electricity tariffs will remain broadly stable compared to last year, with modest reductions for households and farmers. MERC has also clarified rules on solar banking, Time-of-Day (ToD) tariffs, hotel industry classification, and rooftop solar charges. However, experts in the field of power termed the final review order ‘old wine in a new bottle’. R B Goenka, Chairman Energy Cell, Vidarbha Industries Association’ and Sudhir Budhay, Power Expert, said there is nothing new in the order.

 

“The order fails to provide solutions for long-standing issues, such as high industrial tariffs or infrastructure inefficiencies,” they said. MERC’s recalculations show that average tariffs will not increase. In fact, residential consumers and agricultural users will see gradual reductions over the next five years. For example, household tariffs are expected to fall by about 14 per cent by FY 2029–30, while agricultural tariffs could drop by nearly 29 per cent. “This order is designed to protect ordinary consumers while keeping the system financially viable. We have ensured that tariff changes do not burden households and farmers, who form the backbone of Maharashtra’s economy,” said MERC. Solar banking and ToD: Aligning with national rules One of the most debated issues was how solar open access consumers can use banked energy.

 

MERC claims that it has now aligned banking strictly with its Distribution Open Access Regulations. Solar energy banked during the day can only be used in the same solar hours (9 am–5 pm), and not at night. At the same time, the Commission has redesigned ToD tariffs to encourage consumption during solar hours. Night rebates have been removed, while solar hours will attract clear discounts and evening peak hours will carry a premium. Domestic rooftop Solar: No new charges yet MSEDCL had proposed a Grid Support Charge (GSC) on rooftop solar users as State crosses 5000 MW rooftop in Maharashtra.

 

HT consumers will pay Rs 1.42 & Rs 1.96 for LT consumers. MERC has clarified that banking charges will be removed after application of GSC without clarifying on whether it will be on generated units or exported units. Hotels: In commercial category consumers Hotels will continue to be billed under the commercial category. MERC stated that Government tourism incentives should be implemented through subsidies or refunds, not by changing tariff categories. This ensures that cross-subsidy burdens are not unfairly shifted to other consumers. A transparent, balanced outcome The commission emphasised that this order was the result of one of the most extensive public consultations in recent years, with hearings held across six headquarters and nearly 2,000 objections considered.

 

“This is regulation at its most transparent,” said the MERC. “We listened to every stakeholder – from industry to farmers, from renewable developers to households – and crafted a balanced outcome. Tariffs remain fair, renewable energy is promoted responsibly, and consumer rights are protected,” the commission added. With this order, MERC has set the framework for Maharashtra’s electricity sector for the next five years. Consumers can expect stable bills, while renewable energy suppliers and consumers are now forced to think out of box and plan accordingly. Comments from experts R B Goenka The High Court and Supreme Court had previously told the regulator not to make huge, sweeping changes to banking policies (like how electricity is stored or credited) during a ‘review’ process. A review is meant for fixing small, obvious mistakes - like a typo or a math error. It is not the right place to rewrite major rules. The experts are arguing that if the regulator wants to make “far-reaching changes,” they must use the proper, formal channels like - a fresh MYT/MTR: (Multi-Year Tariff/Mid-Term Review).

 

These are long, detailed public processes where everyone gets to voice their opinion. Instead, the regulator used a review proceeding to push these changes through. By doing this, the regulator is technically following the “letter” of the law (holding a hearing), but they are violating the “spirit” of what the High Court ordered. They are doing exactly what the court warned them not to do, just under a different label. Sudhir Budhay This is an order redrafted with minor changes in the earlier order. MERC acknowledges that banking provisions are in DOA Regulations and that “amendment to provisions of the DOA Regulations pertaining to banking may not be envisaged in the MYT process.” By narrowing the portability of solar hour banked units to other non peak hour time zones, MERC has effectively amended the regulatory position, which is contrary to its own statement that DOA amendments cannot be done in MYT, and contrary to the regulatory hierarchy

 

(Regulations under Section 181 vs individual tariff orders under Sections 61–64). Basic character of banking (solar hour bank usable across non-peak) would not be changed except by a formal, prospective Regulation amendment, not retrofitted via review. By this thousands of projects already functioning will see red as they are designed as per earlier regulations. The change in GSC are also made without clarifying the public demand by most of stakeholders whether GSC should be applied on generated units or exported units. To me logically it should apply to ONLY EXPORTED UNITS as it is a charge which is replacing banking charge as per MERC’s own order. Charging GSC on generated units will go against the Section 7 and section 9 of Electricity Act which delicenses power generation for captive use. While making ToD applicable to domestic consumers, MERC has not spelled out any methodology for applying slab rates to such consumers failing which MERC’s objective of “shifting consumption to day time” will be no use as this category is billed slab wise. It is essential for MREC to clarify how slab rates will get superimposed wit ToD cover.