The Appellate Tribunal for Electricity (APTEL) has issued an interim order staying the issuance of disconnection notices and electricity bills raised under the new power banking mechanism introduced by the Maharashtra Electricity Regulatory Commission (MERC).

Recently, MERC modified aspects of its multi-year tariff order, revising time-of-day (ToD) banking rules and rationalizing the rebate structure to better align with regulatory principles and solar consumption patterns.

The Tribunal clarified that this stay would remain in force until a final judgment is delivered in this matter.

It directed that the appellants must submit an undertaking stating that, if the appeals are decided against them, they will pay the entire amount within one month.

At the same time, the Tribunal ordered that the appellants must continue paying banking charges under the earlier power banking regime.

The matter has been listed for further hearing on May 11, 2026.

Recently, the Bombay High Court dismissed a writ petition challenging MERC’s review order on tariff revisions, holding that the petitioners must avail themselves of the remedy before APTEL. The petitioners argued that MERC failed to consider or address the objections raised by stakeholders, particularly regarding ToD tariffs, banking provisions, and the withdrawal of night-hour rebates.

Background

The case arises from multiple appeals filed by industry associations, renewable energy companies, and industrial consumers challenging MERC’s order.

These appeals opposed the implementation of a new power banking mechanism and the resulting billing.

During the hearing, the appellants noted that disconnection notices had been issued to some of them due to non-payment of electricity bills calculated in accordance with the new order.

Commission’s Analysis

APTEL noted that the appeals are currently under active consideration and that the issuance of disconnection notices during this period required intervention.

It emphasized that granting interim protection was necessary in the interest of justice and equity.

The Tribunal noted that this interim order will be subject to an undertaking to be submitted by the appellants that if the appeals are decided against them, they will pay the entire amount stayed by this interim order within one month of the judgment, provided there is no stay from the Supreme Court during that period.

Accordingly, the Tribunal stayed both the disconnection notices and the bills to the extent they reflect charges calculated under the new power banking mechanism.

Last month, the Supreme Court upheld the Maharashtra government’s authority to withdraw or modify electricity duty exemptions granted to captive power generators, while directing that such withdrawal can take effect only after a reasonable one-year notice.

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