The Maharashtra Electricity Regulatory Commission (MERC) has directed the Maharashtra State Electricity Distribution Company (MSEDCL) to refund excess wheeling and transmission charges collected from a wind power project between August 2018 and May 2023.

The refund, totaling ₹14.2 million (~$165,272), must be paid along with applicable interest within one month.

The Commission also asked MSEDCL to verify the claims of the petitioner, Ghatge Patil Industries (GPIL), before releasing the payment and rejected the petitioner’s demand for litigation costs, finding it without merit.

Background

GPIL owns 17.25 MW of wind power capacity in Dhule, Maharashtra, and supplies electricity to its manufacturing units at Uchgaon and Kagal through open access.

It approached MERC, alleging that from August 2018 to May 2023, MSEDCL incorrectly levied wheeling and transmission fees based on generation rather than the actual energy drawal at the point of consumption. This practice, according to GPIL, violated established MERC orders and the Appellate Tribunal for Electricity’s 2022 judgment.

GPIL sought a refund of ₹14.2 million (~$165,272) with 15% interest, asserting that MSEDCL’s actions constituted repeated violations and a continuing wrong. It also requested litigation costs from the distribution company.

MSEDCL argued that GPIL’s petition was time-barred for any period before May 2021.

It maintained that charges were levied per Regulation 14.6 of the Distribution Open Access Regulations, 2016, and the Multi-Year Tariff (MYT) Order of November 2016.

The MYT Order established the framework for determining wheeling charges, focusing on net energy sales without losses. It included specific rates and distinctly separates wheeling charges from losses.

Commission’s Analysis

The Commission rejected MSEDCL’s limitation argument and held the billing practice as a continuing wrong. It found that MSEDCL’s billing practice of levying charges based on generation rather than drawal was inconsistent with the regulatory framework and previous orders.

MERC emphasized that the MYT Order of 2016 did not authorize billing based on generation losses twice and criticized MSEDCL for failing to align its billing methodology with clarified regulatory norms and judicial pronouncements.

The Commission directed MSEDCL to refund the excess wheeling and transmission charges of ₹14.2 million (~$165,272) with 15% interest.

MERC also noted MSEDCL’s procedural lapses, delayed filings, and contradictory positions in various forums. It cautioned MSEDCL against future non-compliance and warned of stricter scrutiny.

The Commission, however, rejected GPIL’s request for litigation costs.

Recently, MERC rejected a petition filed by a renewable energy consultant seeking the abolition of grid support charges imposed on rooftop solar systems with capacities above 10 kW and below 1 MW.

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