Mumbai: Mahavitaran has escalated its tariff dispute to the Supreme Court, contesting a Bombay High Court ruling that requires a 12 per cent immediate reduction in consumer tariffs.
The special leave petition aims to overturn this directive, creating uncertainty for millions in Maharashtra regarding future electricity rates. This legal battle began with a March 28 tariff order from the State Electricity Regulatory Commission, which approved significant cuts contrary to Mahavitaran's proposed revenue gap.
The Commission’s subsequent findings instead calculated a substantial revenue surplus, leading to the substantial rate reduction. Mahavitaran, however, argued the tariff cut would result in a massive financial setback, claiming a potential loss of approximately ninety two thousand crore rupees over a five year period, and promptly filed a review petition with the regulator.
The regulatory body subsequently issued a revised order on June 25, largely accepting the utility’s financial arguments and increasing tariffs for specific consumer groups. This quick reversal became the subject of litigation when several stakeholders challenged it in the High Court.
They asserted that the Commission violated fundamental principles of natural justice by failing to provide adequate opportunity for consumer groups and other affected representatives to argue against the proposed changes before finalizing the revised rates.
The Bombay High Court sided with the petitioners, revoking the June 25 order and reinstating the initial March 28 tariff reduction. The court also specifically instructed the Commission to conduct a fresh review of Mahavitaran's petition only after properly hearing all affected parties.
Facing the financial strain of immediately implementing the 12 per cent cut as per the High Court ruling, Mahavitaran has now approached the apex court. The company aims for a speedy hearing, hoping for a stay on the High Court’s order, which would allow existing higher rates to remain in effect while the complex financial dispute is finally resolved.
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