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The Maharashtra Electricity Regulatory Commission (MERC) reviewed a petition by the Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) for the approval of short-term power procurement and tariff adoption for the period from April 1, 2025, to May 31, 2025. This petition also included a request for setting a ceiling rate for short-term power purchases for the fiscal year 2025-26.
MSEDCL highlighted the need for additional power to address peak demand during April and May, driven by post-monsoon agricultural activities and increased electricity usage. The company’s analysis showed a potential shortfall of up to 1,700 MW during peak hours, prompting the issuance of tender ET-117 for procurement through a transparent bidding process. The tender aimed to secure power ranging from 500 MW to 800 MW during specified periods. The discovered tariffs ranged from ?5.50/kWh to ?6.92/kWh, consistent with prevailing market rates.
The MERC acknowledged that the rates for the October 2024 and March 2025 procurements were within the previously approved ceiling of ?8.50/kWh and required no further approval. However, as no ceiling rate was available for FY 2025-26, MSEDCL sought the Commission’s adoption of the discovered tariff for April and May 2025. The Commission approved the procurement, finding the rates reasonable and aligned with market trends. The approval was granted to ensure uninterrupted power supply during peak demand months.
The Commission directed MSEDCL to provide detailed demand-supply projections in its upcoming tariff filings and to explore energy storage options to address surplus power during solar hours. Additionally, it reserved decisions on setting a ceiling tariff for FY 2025-26 until a comprehensive power procurement plan is submitted as part of MSEDCL’s Multi-Year Tariff petition.
MSEDCL was instructed to submit final power purchase agreements for records, ensuring compliance with procurement guidelines. The decision underscores the importance of proactive planning and transparent processes in managing electricity demand and supply effectively. |
