# MERC Maharashtra State Electricity Distribution Co. Ltd. Review Order for FY2025-26 to FY2029-30 (Case No. 75 of 2025)

- **Issuing authority:** Maharashtra Electricity Regulatory Commission (MERC)
- **Case number:** 75 of 2025
- **Order date:** 25 March 2026
- **Petitioner:** Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL)
- **Order type:** Review Order
- **Control period:** CP-5 (FY2025-26 to FY2029-30)
- **Tariff regime:** Section 62, Electricity Act 2003
- **Length:** 123 pages
- **Official PDF:** https://merc.gov.in/wp-content/uploads/2026/03/MSEDCL-Order_75-of-2025_25032026.pdf

## Section index

| Section | Title | Page |
|---|---|---|
| 2 | Summary of Petition filed by MSEDCL and grounds as submitted by MSEDCL | 10 |
| 3 | Scope of the present Petition and proceeding undertaken | 13 |
| 4 | Suggestions/Objections, MSEDCL’s Reply and Commission’s Ruling | 14 |
| 4.2 |  Maintainability of the present Petition | 14 |
| 4.3 |  Time of Day Tariff and Banking Provisions | 21 |
| 4.4 |  Grid Support Charges | 26 |
| 4.5 |  Tariff Recategorization of Hotel Industry | 28 |
| 4.6 |  kVAh Billing Methodology | 29 |
| 4.7 |  Capex & Opex | 32 |
| 4.8 |  Agricultural Sales Estimation | 34 |
| 4.9 |  Power Purchase Expenses | 36 |
| 4.10 |  Additional Submission by MSEDCL dated 04 December 2025 | 38 |
| 4.11 |  Wheeling Charges | 39 |
| 4.12 |  Miscellaneous | 43 |
|  |  Tariff Hike | 43 |
|  |  Smart Meter Implementation | 44 |
|  |  Prompt Payment Rebate | 44 |
|  |  Regulatory Framework for Combined Solar & Bio Energy Plant and BESS Projects | 44 |
|  |  Net Metering for Street Lights | 45 |
|  |  Virtual Net Metering & Group Net Metering | 45 |
|  |  Performance Linked Incentive/ Penalty to MSEDCL | 45 |
|  |  Peer to Peer Model Implementation | 45 |
|  |  Parallel Distribution Licence | 46 |
|  |  Forensic Audit of MSEDCL Accounts | 46 |
|  |  Reorganization of slab for LT-I: Domestic | 46 |
|  |  Consumer Representatives at MERC | 46 |
|  |  Lower Tariff for Public Water Works | 46 |
|  |  High Fuel Adjustment Charges (FAC) | 47 |
|  |  Security Deposit | 47 |
|  |  Open Access/ Green Energy Open Access | 47 |
| 6 | Issue I: Disallowance of capitalisation and consequential impact on ARR | 51 |
| 10 | Issue V: Disallowance in Interest on Working Capital | 66 |
| 12 | Issue VII: Calculation of rate of depreciation for FY 2022-23 to FY 2024-25 and for the 5th Control Period | 68 |
| 13 | Issue VIII: Disallowance of power purchase cost for FY 2024-25 | 69 |
| 14 | Issue IX: Energy Balance calculation in True-up Period | 70 |
| 15 | Revenue from additional Sale approved in this Order and variation in total revenue gap | 71 |
| 16 | Summary of Impact of all claims on ARR component under Review Petition | 72 |
| 17 | Revised Modified ACoS | 72 |
| 18 | Issue X: Time of Day (ToD) tariff and banking provisions | 73 |
| 19 | Issue XI: Change in classification of the hotel industry | 79 |
| 21 | Issue XIII: Disallowance of Grid Support Charges | 82 |
| 22 | Issue XIV: Removal of RPO fulfilment in respect of green power supplied to non-obligated entities at the green tariff | 84 |
| 23 | Issue XV: Inequitable distribution of savings in power purchase cost | 85 |
| 26 | Applicability of the Order | 88 |
|  | Order | 90 |
|  | Annexure IV: Monthly Power Purchase Expenses | 114 |

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