MERC Imposes 45L Penalty On MSEDCL Over Non-Compliance

MERC Imposes 45L Penalty On MSEDL Over Non-Compliance

In its latest judgment, the Maharashtra Electricity Regulatory Commission (MERC) imposed penalties on the Maharashtra State Electricity Distribution Co. Ltd (MSEDCL) over non-compliance issues. The Maharashtra power regulator passed the Order after Harshwardhan Jadhav, an ex-MLA, moved MERC, seeking action against the state discom. 

In his petition before the MERC, the petitioner blamed the MSEDCL for non-compliance with the e MERC (Electricity Supply Code and Standards of Performance For Distribution Licensees, Including Power Quality) Regulations, 2021 (MERC Supply Code Regulations, 2021). These referred to the non-compliance of the state power distribution licensee in matters related to the installation of power quality meters, a mechanism for automatic compensation, and periodic testing of consumer meters. 

The MERC order said that the MSEDCL’s ‘careless approach’ towards compliance with provisions of Supply Code Regulations related to the installation of power quality meters and implementation of automatic compensation has forced the Commission to impose a penalty on MSEDCL under Section 142 of the Electricity Act 2003. 

“As said, non-compliance is continuing, a penalty of Rs 6000 per day of delay is also imposed till MSEDCL complies with provisions of Regulations. MSEDCL shall deposit the penalty amount computed till 30 November 2023 in above paragraph in the Office of the Commission within 15 days from date of this Order. Once Regulations are framed after following due regulatory process, the Commission needs to ensure implementation of the same. MSEDCL shall submit a monthly progress report on the implementation of these provisions of Regulations. If no substantial progress is visible within six months from the date of this Order, then the Commission will be forced to initiate appropriate action against Senior Official of the MSEDCL,” the Order said.

The final Order of the MERC said, “MSEDL to pay the following penalty amount within 15 days from date of this Order–a) Rs. 40.70 lakh (Rs 2 lakh for two contraventions and Rs 38.70 lakh for continued contravention calculated till 30 Nov 2023) for noncompliance of Regulation 22.14 (installation of power quality meters) of MERC Supply Code Regulations 2021. b) Rs. 4.66 lakh (Rs 1 lakh for first contraventions and Rs 3.66 lakh for continued contravention calculated till 30 Nov 2023) for noncompliance of Second proviso to Regulation 25.2 (mechanism for automatic compensation) of MERC Supply Code Regulations 2021read with MTR Order dated 31 March 2023,”

The Order also said that the exact penalty amount will be calculated once MSEDCL complies with provisions of Regulations, and thereafter, the differential penalty amount shall be paid by MSEDCL.

“MSEDCL to submit monthly progress report on implementation of above provisions of Regulations. If no substantial progress is visible within six months from date of this Order, then Commission will be forced to initiate appropriate action against Senior Officials of the MSEDCL,” the MERC order said.