The Supreme Court of India has directed the Maharashtra Electricity Regulatory Commission (MERC) to review the petitions challenging the impugned multi-year tariff (MYT) within 12 weeks.

In a November 17, 2025, ruling remanding the matter to the MERC, the apex court said all stakeholders must be heard before the electricity regulator takes a decision.

It also said the directions issued by the Bombay High Court in the matter will continue to operate.

Recently, the Bombay High Court quashed the impugned MYT order limiting power banking facilities in the state and said that the earlier MYT order, passed by MERC on March 28, 2025, will continue to be in force.

The ruling came in the background of multiple writ petitions filed by stakeholders in the renewable energy sector, challenging the MYT order passed without public consultation.

On March 28, 2025, MERC passed the MYT order, and MSEDCL filed an interlocutory application requesting a stay of its enforcement in the interest of protecting consumers and stakeholders.

Following the MSEDCL petition, MERC issued a stay on the MYT order without holding any public consultation.

On June 25, 2025, MSEDCL filed a review petition seeking amendments to the MYT order, and the Commission approved it, again without considering stakeholder opinions.

The impugned June order altered several key aspects of the MYT order, including renewable energy banking and approvals for distribution companies’ capital expenditure/annual aggregate review requirements.

Based on a writ petition filed by the National Solar Energy Federation of India, the Bombay High Court stayed MSEDCL’s limitations on the use of banked solar power within solar hours in September.

Solar project developers said that the energy banking restrictions could adversely impact solar capacity additions in Maharashtra and result in a 10% reduction in consumer savings.

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