In a significant development for Maharashtra's power consumers, the Supreme Court has issued a clear timeline for resolving the ongoing electricity tariff dispute. The apex court has directed the Maharashtra Electricity Regulatory Commission (MERC) to make a decision on the review petition filed by the Maharashtra State Electricity Distribution Company Ltd (MSEDCL) within twelve weeks.
Court Mandates Stakeholder Consultation
The Supreme Court emphasized that MERC must consult all relevant stakeholders before reaching its final decision. Until the fresh order is issued, the existing electricity tariffs will remain in force, according to senior MSEDCL officials who confirmed the development.
This judicial intervention comes after MSEDCL approached the Supreme Court challenging a Bombay High Court ruling that had quashed MERC's review order earlier this month. The High Court had initially granted both MSEDCL and MERC four weeks to approach the apex court.
Legal Proceedings and Court Directives
In its detailed order, the Supreme Court stated: "At the outset, counsel for the parties agree that ends of justice would be met if the matter is remanded back to the MERC. We, therefore, remand the review petition to MERC and direct it to decide on it within a period of 12 weeks from the date of the order."
The court further clarified that MERC must provide an opportunity of hearing to all concerned stakeholders before issuing its final decision. This requirement addresses one of the key concerns raised by consumer groups and industry bodies in the original petitions.
Background of the Tariff Controversy
The entire issue traces back to MERC's March 28 Multi-Year Tariff (MYT) order, which had significantly reduced electricity tariffs and was widely praised as historic and consumer-friendly. However, following an appeal by MSEDCL, MERC stayed this order and issued a revised tariff on June 25.
Energy experts claimed that the revised tariff substantially increased rates, triggering multiple writ petitions before the Bombay High Court. The petitions were filed by various industry bodies, consumer groups, and energy companies who argued that MERC had issued the review order without holding public hearings or inviting objections, despite making major policy and tariff changes.
A senior MSEDCL official explained that the apex court order means the present tariff structure will continue for now. "Now, MERC will decide how they will move ahead to involve all stakeholders before making a decision on the review petition," the official stated.
Expert Opinion on Legal Requirements
Power expert RB Goenka highlighted that MERC is now obligated to conduct a public hearing. "MERC cannot give an order on the review petition as MSEDCL filed it without following its limited scope. MSEDCL should now file a fresh petition which will include discussions on all factors. If the decision is taken on the review petition, it would be illegal. In that case we will file an appeal in the tribunal," Goenka warned.
The Supreme Court's directive ensures that all parties will have their say in the matter, potentially setting a precedent for how such tariff disputes are handled in the future. The twelve-week deadline provides a clear timeframe for resolution while maintaining current electricity rates during the decision-making process.
