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MERC Orders MSEDCL to Refund Rs 1.54 Cr Wrongfully Imposed on Solar Generators
Mar 25, 2025
The Maharashtra Electricity Regulatory Commission (MERC) has ruled against the Maharashtra State Electricity Distribution Company (MSEDCL) for wrongly imposing wheeling charges and losses on solar power generators. The regulator directed MSEDCL to refund Rs 1.54 crore to petitioners TP Solapur Saurya, TP Arya Saurya, and TP Ekadash and reverse 2.10 million units (MU) of wheeling losses deducted between May 2023 and March 2024.
Background of the Case
- The petitioners, operating under Tata Power Renewable Energy (TPREL), supply electricity to large consumers like Tata Steel, Neosym Industry, and Fenace Auto.
- Their solar projects (8.4 MW in Solapur, 12.5 MW & 8.8 MW in Nanded) are connected directly to Maharashtra State Electricity Transmission (MSETCL) at 132 kV, bypassing MSEDCL’s distribution network.
- Despite this, MSEDCL imposed wheeling charges and deducted energy units, claiming transmission losses.
MERC’s Key Observations & Ruling
- Wheeling charges apply only when power flows through a distribution network. Since the projects are connected directly to MSETCL, MSEDCL’s charges were deemed unlawful.
- Auxiliary power drawn from MSEDCL does not justify wheeling charges.
- Pooling substations do not constitute physical interconnection with MSEDCL’s distribution network.
- MSEDCL must refund the imposed charges and ensure such charges are not levied in the future.
This ruling strengthens open-access solar generators' rights and prevents unjustified cost burdens on clean energy producers.