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MERC Maharashtra State Electricity Transmission Co. Ltd. Multi-Year Tariff (MYT) Order for FY2025-26 to FY2029-30 (Case No. 178 of 2024)

MERC order dated 28 March 2025 in Case 178 of 2024: a 383-page multi-year tariff (myt) order for Maharashtra State Electricity Transmission Co. Ltd., covering FY2025-26 to FY2029-30. Full section index with printed page numbers, key facts, and a link to the official order.

Key facts

Issuing authority
Maharashtra Electricity Regulatory Commission (MERC)
Case number
178 of 2024
Order date
28 March 2025
Petitioner
Maharashtra State Electricity Transmission Co. Ltd. (MSETCL)
Entity
Maharashtra State Electricity Transmission Co. Ltd. (MSETCL)
Order type
Multi-Year Tariff (MYT) Order
Control period
CP-5 (FY2025-26 to FY2029-30)
Tariff regime
Section 62, Electricity Act 2003
Act sections cited
s.61, s.62
Licensee segment
transmission
Asset segment
transmission
State
Maharashtra
Length
383 pages

About this order

A Multi-Year Tariff (MYT) order determines a regulated entity’s Aggregate Revenue Requirement and tariffs for a full control period — typically five financial years — under Sections 61 and 62 of the Electricity Act, 2003. It usually combines a true-up of past years, a provisional true-up of the most recent year, and projections for each year of the new control period.

This order was issued by the Maharashtra Electricity Regulatory Commission, the electricity regulator for Maharashtra. It relates to the 5th control period, FY2025-26 to FY2029-30. The section index below is extracted from the order’s own structure; page numbers refer to the printed page in the official PDF.

Section index

  1. 1. Introduction5 sections · p. 17
    1. 1.1. Backgroundp. 17
    2. 1.2. Multi-Year Tariff Regulations and Control Periodp. 17
    3. 1.3. Petition and main Prayers of MSETCLp. 17
    4. 1.4. Admission of Petition and Public Consultation Processp. 17
    5. 1.5. Organisation of the Orderp. 17
  2. 2. Suggestions / objections received, MSETCL’s response and the Commission’s ruling8 sections · p. 18
    1. 2.2. Impact of Past disallowed Capitalisation against unutilised bays from approved schemep. 23
    2. 2.3. Return on Equityp. 25
    3. 2.4. Capitalisation and Gross Fixed Assetsp. 26
    4. 2.5. Non-Tariff Incomep. 28
    5. 2.6. Issue of GMR Warora Energy Ltd (GWEL) InSTS Grid connectivity to STU for evacuation of MSEDCL share of 200 MW Powerp. 29
    6. 2.7. Issue of Overloading of 220 kV double circuit Babhaleshwar – Nashik Linep. 30
    7. 2.8. Issue of Line loading of 400 kV Chakan – Talegaon Linep. 33
    8. 2.10. Non-Availability of Available Transmission Capacity (ATC) for the upcoming Projectsp. 34
  3. 3. Summary of Impact of Disallowed Capitalisation for previous years4 sections · p. 34
    1. 3.1. Background / MSETCL submission:p. 37
    2. 3.2. Impact of past disallowed capitalisation now being claimed, which is put to usep. 38
    3. 3.3. Impact of past disallowed capitalisation against unutilised bays from approved schemes (as identified in MTR Order in Case No. 232 of 2022), which are put to usep. 43
    4. 3.4. Impact of past disallowed Capitalisation against balance Unutilised (33/22/11 kV) bays till FY 2014-15, which is put to usep. 47
  4. 4. Impact of Review Order5 sections · p. 47
    1. 4.1. Introductionp. 49
    2. 4.2. Utilisation of Special reserve Amountp. 49
    3. 4.3. Impact on account of exclusion of Past revenue gap of Rs 236.63 Crore from computation of effective revenue gap for FY 2019-20p. 50
    4. 4.4. Impact of Disallowance of the reactor scheme funded through PSDF grantp. 54
    5. 4.5. Impact of Utilization of Special Reserve Amount as approved by the Commissionp. 55
  5. 5. Truing-up of ARR for FY 2022-23 and FY 2023-2417 sections · p. 55
    1. 5.1. Backgroundp. 55
    2. 5.2. Operation & Maintenance Expenses for FY 2022-23 and FY 2023-24p. 61
    3. 5.3. Employee Expensesp. 63
    4. 5.4. Administrative and General Expensesp. 72
    5. 5.5. Repairs and Maintenance Expensesp. 79
    6. 5.6. Normative O&M expenses for FY 2022-23 & FY 2023-24p. 81
    7. 5.7. Capital Expenditure and Capitalisationp. 93
    8. 5.8. Depreciation for FY 2022-23 and FY 2023-24p. 126
    9. 5.9. Interest on Long Term Loan for FY 2022-23 and FY 2023-24p. 129
    10. 5.10. Other Finance Charges for FY 2022-23 and FY 2023-24p. 133
    11. 5.11. Interest on Working Capital for FY 2022-23 and FY2023-24p. 133
    12. 5.12. Return on Equity for FY 2022-23 and FY 2023-24p. 136
    13. 5.13. Contribution to Contingency Reserves for FY 2022-23p. 142
    14. 5.14. Revenue from Transmission Charges, Income from Wheeling Charges and Point of Connections (PoC) Charges for FY 2022-23 and FY 2023-24p. 143
    15. 5.15. Non-Tariff Income for FY 2022-23 and FY 2023-24p. 149
    16. 5.16. Sharing of efficiency gains /(losses)p. 150
    17. 5.17. Summary of Truing -up of ARR for FY 2022-23 and FY 2023-24p. 154
  6. 6. Provisional Truing-up of ARR for FY 2024-2516 sections · p. 154
    1. 6.1. Backgroundp. 158
    2. 6.2. Operation & Maintenance Expenses for FY 2024-25p. 158
    3. 6.3. Employee Expensesp. 159
    4. 6.4. Administrative and General Expensesp. 161
    5. 6.5. Repair and Maintenance (R&M) Expensesp. 162
    6. 6.6. Normative O&M expenses for FY 2024-25p. 163
    7. 6.7. Capital Expenditure and Capitalization for FY 2024-25p. 171
    8. 6.8. Depreciation for FY 2024-25p. 174
    9. 6.9. Interest on Long Term Loan for FY 2024-25p. 176
    10. 6.10. Other Finance Charges for FY 2024-25p. 178
    11. 6.11. Interest on Working Capital for FY 2024-25p. 178
    12. 6.12. Return on Equity for FY 2024-25p. 179
    13. 6.13. Contribution to Contingency Reserves for FY 2024-25p. 182
    14. 6.14. Revenue from Transmission Charges, Income from Wheeling Charges and Point of Connection (PoC) Charges for FY 2024-25p. 183
    15. 6.15. Non-Tariff Income for FY 2024-25p. 185
    16. 6.16. Summary of Provisional Truing-up of ARR for FY 2024-25p. 186
  7. 7. Aggregate Revenue Requirement for the 5th Control period from FY 2025-26 to FY 2029-30, revenue gap and impact on transmission tariff16 sections · p. 186
    1. 7.1. Backgroundp. 186
    2. 7.2. Operation & Maintenance Expenses for FY 2025-26 to FY 2029-30p. 190
    3. 7.3. Opex for FY 2025-26 to FY 2029-30p. 203
    4. 7.4. Capex and Capitalisation for FY 2025-26 to FY 2029-30p. 204
    5. 7.5. Gross Fixed Assets (GFA) for FY 2025-26 to FY 2029-30p. 207
    6. 7.6. Depreciation for FY 2025-26 to FY 2029-30p. 210
    7. 7.7. Interest on Loan for FY 2025-26 to FY 2029-30p. 213
    8. 7.8. Interest on Working Capital for FY 2025-26 to FY 2029-30p. 216
    9. 7.9. Other Finance Charges for FY 2025-26 to FY 2029-30p. 216
    10. 7.10. Return on Equity for FY 2025-26 to FY 2029-30p. 217
    11. 7.11. Contribution to Contingency Reserve for FY 2025-26 to FY 2029-30p. 220
    12. 7.12. Income from Wheeling charges and point of connection (PoC) Charges for FY 2025-26 to FY 2029-30p. 221
    13. 7.13. Non-Tariff Income for FY 2025-26 to FY 2029-30p. 222
    14. 7.14. Aggregate Revenue Requirement for FY 2025-26 to FY 2029-30p. 223
    15. 7.15. Cumulative Revenue (Gap)/Surplus upto FY 2024-25p. 225
    16. 7.16. Utilisation / Treatment of Special Reserve amountp. 231
  8. 8. Other issues raised by MSETCL for Commission’s approval4 sections · p. 231
    1. 8.1. Installation of Rooftop Solar Projects to reduce Energy consumption at Sub-station of MSETCLp. 235
    2. 8.2. Formulation of methodology for recovery of O&M charges by MSETCL from InSTS Licensee and Transmission Service Provider (TSP) under TBCBp. 238
    3. 8.3. Refund of evacuation expenditure for Wind & Bagasse Projectsp. 240
    4. 8.4. Interest Income – Additional demand note to MEGPTCL towards 2x 765 kV Bays at 765 kV Ektuni substation – Rs.6.42 Crorep. 242
  9. 9. Earlier directives, and compliance status12 sections · p. 242
    1. 9.1. Backgroundp. 242
    2. 9.2. Cost Audit Report (Order in Case No. 232 of 2022)p. 243
    3. 9.3. Scheme being delayed as per Order in Case No. 302 of 2019 (Order in Case No. 232 of 2022)p. 246
    4. 9.4. Retirement of Assets (Order in Case No. 232 of 2022)p. 249
    5. 9.5. Submission approach of capitalisation (Order in Case No. 232 of 2022)p. 251
    6. 9.6. Expedite work in 400 kV Line from Babhaleshwar to Mumbai (Kudus) (Order in Case No. 232 of 2022):p. 255
    7. 9.7. Disallowance of the reactor scheme funded through PSDF grant (8 No. Reactor scheme) (Order in Case No. 137 of 2023)p. 255
    8. 9.8. Past Disallowed Capitalisation (Order in Case No. 232 of 2022)p. 256
    9. 9.9. Gross Fixed Assets (GFA) for MTR Period (Order in Case No. 232 of 2022)p. 257
    10. 9.10. Shifted Scheme (Capitalisation is Shifted to “put to use” years (Order in Case No. 232 of 2022))p. 257
    11. 9.11. Impact of Exclusion of past revenue gap of Rs 236.63 Crore (Order in Case No. 137 of 2023)p. 261
    12. 9.12. Penalty of Rs 48 Crore imposed on MSETCL in the matter of 400/220 kV switchyard at GMR Warora Energy Ltd. Power plant premises (Order in Case No. 137 of 2023)p. 262
  10. 10. Compliance to the Directive in Non-Tariff related orders passed in Present Control Period6 sections · p. 262
    1. 10.1. Case No. 202 of 2020 dated 22.10.2020p. 263
    2. 10.2. Case No. 215 of 2020 dated 31.12.2020p. 264
    3. 10.3. Case No. 58 of 2021 dated 09.08.2021p. 266
    4. 10.4. Case No. 236 of 2020 dated 14.01.2021 and Case No. 137 of 2021 dated 28.10.2021p. 268
    5. 10.5. Case No. 210 of 2020 dated 31.01.2021p. 268
    6. 10.6. Case No. 62 of 2022, Case No. 63 of 2022 and Case No. 64 of 2022p. 269
  11. 11. Recovery of transmission chargesp. 269
  12. 12. Applicability of the Orderp. 269
  13. 13. Annexure-1: List of Persons Present at the Technical Validation Session on 27 November 2024p. 269
  14. 14. Annexure-2: List of Persons Present at the Public Hearing on 07 January 2025p. 271
  15. 15. Annexure-3: List of Schemes pertaining to Past Disallowed Capitalisation considered for approval:p. 274
  16. 16. Annexure-4: List of Schemes against which capitalisation is claimed by MSETCL in FY 2022-23 to FY 2029-30:p. 281

Index extracted from the official order. Page numbers are the printed page in the PDF; front-matter (table of contents, abbreviations) is not indexed.

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Official order PDF (MERC) · 383 pages.

Case details, dates and the section index on this page are extracted directly from the official order published by MERC. This page was assembled by CtrlPeriod Research using automated document analysis; it does not reproduce the order’s determined tariff figures. It is a research aid, not legal or financial advice — verify against the official order before relying on it.