Prayas (Energy Group) has submitted comments on MSEDCL's Review Petition of the MYT Order dated 28 March 2025. MSEDCL seeks additional costs : (a) Rs. 55,600 crores in Capex, (b) Rs. 69,800 crores due to errors in MERC power procurement model (c) Rs. 3,272 crores due to errors in agricultural demand estimation methodology (d) Rs. 11,751 crores due to dispensations approved by Supreme Court, APTEL and MERC in various orders. MSEDCL has also claimed erroneous classification of hotel industry and specification of time-of-day tariffs with clarifications on banking restrictions.
In this submission, the following points are made:
- PEG believes that the claims raised by MSEDCL are in the nature of reconsideration of the entire matter itself and do not qualify for a review as per in Order 47 of the Code of Civil Procedure 1908 and regulation 28(a) of the MERC (Transaction of Business and Fees and Charges) Regulations 2022. In this context, PEG proposes that the Commission should reject MSEDCL's review petition claims.
- However, as the issues discussed in the order will impact medium term development of the Maharashtra power sector and set the course for future sector developments and investment, it is critical that there is a swift resolution and clarity and that future litigation is avoided.
- In this context, it is suggested that:
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- The MYT regulations are amended with due public consultation to shift the 5th Control Period from FY26-FY30 to FY27-FY31
- MSEDCL is directed to file a fresh petition by April 2026 for true-ups for FY23, FY24 and FY25 and provisional true-up for FY26 and ARR and Tariff determination from FY27 to FY31.Mid term review can be conducted in FY29 and the 6th control period can be from FY32 onwards.
- All prudent costs incurred can be claimed at the time of true-up in the new control period. However, in the interim, prudent cost recovery for power procurement and other costs can take place through FAC and OUC Mechanisms.
This approach provides medium-term clarity, avoids prolonged litigation, and ensures due public consultation.