The Supreme Court has agreed to urgently hear Maharashtra State Electricity Distribution Company Limited's (MSEDCL) plea seeking a review of an order that upheld an award of nearly Rs 600 crore to JSW Energy. The dispute centres on whether directions issued by the Ministry of Power under Section 11 of the Electricity Act applied to JSW Energy's Unit-1 at Ratnagiri and whether the Maharashtra Electricity Regulatory Commission (MERC) can reconsider its own order.
MSEDCL approached the Supreme Court after the Appellate Tribunal for Electricity (APTEL) on Aug. 19 refused to allow the state power distributor to pursue a review of the award before MERC. APTEL had allowed MSEDCL to withdraw its appeal but did not grant permission to seek a review before the regulator.
MSEDCL Challenges Rs 599 Crore Award
The dispute follows a Dec. 24, 2025, order by MERC directing MSEDCL to pay about Rs 599 crore to JSW Energy. The amount includes Rs 568 crore in differential energy charges and Rs 31 crore in fixed charges, along with a late-payment surcharge.
MERC held that the Ministry of Power's directions under Section 11 of the Electricity Act did not apply to JSW Energy's Unit-1 at Ratnagiri because the plant is an intrastate generating station. It said the state government was therefore the appropriate authority.
MSEDCL challenged the MERC order before APTEL. During the proceedings, Solicitor General Tushar Mehta, appearing for MERC, told the tribunal that the regulator was willing to reconsider its own order and asked for the matter to be sent back to the commission.
JSW Energy opposed the move. The company argued that it was unusual for a regulator to support one party in a dispute against another and said the move would affect its rights.
APTEL Flags Forum Shopping
APTEL described MERC's position as "unprecedented" and considered whether MSEDCL could withdraw its appeal and instead pursue a review before the regulator.
The tribunal noted that MSEDCL had already pursued the dispute through multiple proceedings, including obtaining relief from the Supreme Court. It said the distributor sought to withdraw the appeal only after failing to secure interim relief.
APTEL said the sequence indicated an attempt at forum shopping.
The tribunal ultimately allowed MSEDCL to withdraw its appeal but refused to give it liberty to seek a review before MERC. It also noted that MSEDCL had already paid Rs 250 crore to JSW Energy under Supreme Court directions, creating vested rights in favour of the generator.
The MERC order directing MSEDCL to pay about Rs 599 crore, along with the applicable surcharge, therefore remains in force. MSEDCL has now taken the dispute to the Supreme Court.
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