Bhiwandi: Even before the final verdict on the contentious power tariff review petition, the sudden resignation of the Maharashtra Electricity Regulatory Commission (MERC) chairperson has triggered serious concerns among electricity consumers and industry bodies. Alleging lack of transparency and possible government interference, powerloom associations in Bhiwandi have demanded immediate intervention by the state government.
Leadership change sparks confusion
The controversy erupted after MERC Chairperson Sanjeev Kumar tendered his resignation ahead of schedule, despite the tariff determination process being in its final stage. Retired bureaucrat Valsa Nair Singh has been appointed as the new chairperson, a move that has left nearly 11,000 objecting consumers confused and apprehensive about the credibility of the impending order.
Tirupati Siripuram, President of the Bhiwandi Powerloom Mazdoor Bim Weavers and Owners Association, said that the multi-year tariff (MYT) review petition filed by Maharashtra State Electricity Distribution Company Limited (MSEDCL) was under active consideration following directions from the Supreme Court. Public hearings were conducted across five cities — Mumbai, Pune, Nagpur, Amravati and Aurangabad — and the process was nearing completion when the sudden leadership change took place.
MSEDCL had submitted its tariff proposal to MERC in December 2024. On March 28, 2025, the three-member commission comprising Chairperson Sanjeev Kumar and members Anand Limaye and Surendra Biyani had struck down the proposed additional 8 per cent power theft and distribution losses, granting significant relief to consumers. The order was widely welcomed by consumer bodies.
Tariff hike challenged in court
However, acting on a review petition filed by MSEDCL, the commission stayed its own order within four days and, on June 25, 2025, approved a steep hike in electricity tariffs. This prompted consumer groups to approach the Bombay High Court and later the Supreme Court. Both courts came down heavily on the regulator, citing lack of transparency and failure to hear consumer objections, and stayed the tariff hike while directing MERC to conduct fresh public hearings.
Accordingly, departmental-wise public hearings were held across Maharashtra between January 2 and January 8, 2026, during which nearly 11,000 consumers and organisations unanimously demanded restoration of the March 28 order.
Fairness questioned
While Sanjeev Kumar’s tenure was officially valid till February 7, 2026, he resigned on January 17, midway through the process. Since the entire hearing procedure was conducted under his leadership, consumer groups fear that the final decision is now likely to be pronounced by the newly appointed chairperson, raising questions over procedural fairness and institutional independence.
Siripuram said the growing dissatisfaction among the state’s 3.5 crore electricity consumers cannot be ignored. “The Chief Minister and Deputy Chief Minister must intervene immediately. The original March 28 order should be restored and relief given to power consumers. Otherwise, the government will have to face massive public anger,” he warned.
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