The Supreme Court has ordered the Maharashtra Electricity Regulatory Commission (MERC) to reconsider its tariff review after following proper procedure and hearing all stakeholders. The apex court also allowed the Bombay High Court’s earlier directions to remain in force until MERC completes the fresh review. A bench of Chief Justice B R Gavai, Justice K Vinod Chandran and Justice N V Anjaria passed the order while hearing the special leave petitions filed by MERC and Maharashtra State Electricity Distribution Company Limited (MSEDCL).

 

The Supreme Court agreed with both sides that sending the case back to MERC was the best solution. It directed MERC to complete the new review within 12 weeks. Until then, the directions given earlier by the Bombay High Court - especially paragraphs 48 and 49 of its November 3, 2025 judgment - will remain in force. The dispute began after the Bombay High Court cancelled MERC’s June 25, 2025 review order. The High Court said, MERC had changed the earlier Multi Year Tariff order of March 28, 2025 without giving any hearing to consumers, renewable energy developers or other affected groups. Petitioners argued that while the original tariff order was passed after public notices and hearings, the review was done secretly by hearing only MSEDCL. They said the review made major changes that affected both consumers and renewable energy companies.

 

The High Court agreed and ordered MERC to restart the entire review process. It directed MERC to issue public notices, share the review petition with anyone who asks for it, invite objections, hold hearings, and then pass a new order. It also said, the original tariff order of March 28, 2025 would continue until the review was properly completed. With the Supreme Court’s latest directions, MERC must now carry out the review again in a transparent and fair manner, hear all stakeholders, and issue a fresh decision within the given timeframe. The High Court’s protections will continue until MERC finishes this process.