The Bombay High Court has set aside the Maharashtra Electricity Regulatory Commission’s (MERC) review order issued on June 25, 2025. The court ruled that MERC changed the earlier tariff order of March 28, 2025 without giving any hearing to consumers, renewable energy companies and other stakeholders. Several companies and associations had filed writ petitions arguing that MERC violated the principles of natural justice and also ignored the mandatory procedure mentioned in the 2022 business regulations.

 

The petitioners said that the original Multi Year Tariff order was passed only after public notices, public objections and hearings, but during the review process MERC only heard Maharashtra State Electricity Distribution Company Limited (MSEDCL) and did not hear any other party. The court agreed with this argument and said that once tariff was originally fixed after a public process, any change in that tariff cannot be done behind the backs of stakeholders. The court also noted that the review order was not a small correction but a substantial modification with serious financial effects on consumers and renewable developers. Therefore, the review could not have been done secretly.

 

The High Court has now cancelled the review order and has directed MERC to start the review process again by following all rules, including issuing public notices and giving copies of the review petition to stakeholders who ask for it. After this process, MERC must hear objections and pass a fresh order. Till then, the original tariff order of March 28, 2025 will continue. The court also said that if anyone is unhappy with the new order, they are free to challenge it before the Appellate Tribunal for Electricity. After the judgment, MERC and MSEDCL requested a stay so that they could approach the Supreme Court. The court granted a 4-week stay, but clarified that the interim order of July 1, 2025 and later extensions will continue to remain in force.