Bombay High Court Examines Legality of Maharashtra Electricity Regulatory Commission’s Distribution Open Access Regulations. Challenge Concerns Alleged Jurisdictional Overreach Curtailing Consumers’ Right to Access Power Exchange Under the Electricity Act, 2003.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The provided text is an incomplete extract of a judgment from the Bombay High Court in a set of writ petitions (WP Nos. 2694/2014, 2318/2014, 2294/2014, and 1372/2015). The petitions challenge the Maharashtra Electricity Regulatory Commission (Distribution Open Access) Regulations, 2014, notified on 25 June 2014. The first petitioner in WP 2694/2014, India Energy Exchange Limited, operates a Power Exchange platform for electronic trading of electricity under the Central Electricity Regulatory Commission's (CERC) framework, particularly the CERC (Power Market) Regulations, 2010. The petitioner contends that the impugned State regulations are ultra vires and infringe upon the right of consumers to access electricity from the Power Exchange on a day-ahead basis, violating the Electricity Act, 2003 and the national policy promoting open access. The text details the procedural history leading to the challenge: CERC's 2007 permission for setting up a Power Exchange, subsequent CERC regulations and orders, and MERC's draft regulations in 2011 and 2013. The judgment abruptly ends after describing MERC’s public notice of 3 April 2013, without any record of submissions, issues framed, reasoning, or final decision. The remaining judicial analysis, arguments of parties, and operative directions are absent from the supplied text.

Issue of Consideration

WRIT PETITION NO. 2694 OF 2014

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Case Details

2015 LawText (BOM) (10) 65

Writ Petition No. 2694 of 2014 along with Writ Petition Nos. 2318 of 2014, 2294 of 2014, and 1372 of 2015

2015-10-30

S.C. Dharmadhikari, G.S. Kulkarni

Shyam Mehta, M.G. Ramachandran, Dipali Sheth, Darius Khambatta, Venkatesh Dhond, Deepa Chavan, Iqbal Chagla, Paresh Patkar, Sharan Jagtiani

India Energy Exchange Limited, Rajesh K. Mediratta

Maharashtra Electricity Regulatory Commission, Maharashtra State Electricity Distribution Co. Ltd., Vidarbha Industries Association, Thane-Belapur Industries Association, Mumbai Grahak Panchayat, Prayas Energy Group, Reliance Infrastructure Limited, Tata Power Company Limited

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Nature of Litigation

Challenge to the Maharashtra Electricity Regulatory Commission (Distribution Open Access) Regulations, 2014 notified on 25th June, 2014

Remedy Sought

Quashing of the impugned regulations to the extent they curtail the right of consumers to source electricity from Power Exchange on a day-ahead basis

Filing Reason

The petitioners, including a Power Exchange operator, argue that the regulations are in excess of the State Commission's jurisdiction and violate the Electricity Act, 2003 and national electricity policy promoting open access

Submissions/Arguments

Petitioners contend that the impugned regulations are ultra vires the MERC's powers and violate the Electricity Act, 2003, particularly provisions on open access and national policy, and that the State Commission cannot curtail inter-State trading through Power Exchanges. Not mentioned for respondents

Judgment Excerpts

All these petitions challenge the regulations notified vide Gazette Notification dated 25th June, 2014 and to the extent indicated in each of these Writ Petitions. Hence, the impugned regulations are in excess of jurisdiction as far as it seeks to curtail the right of the consumers to source electricity from Power Exchange on a day-ahead basis.

Procedural History

The Central Electricity Regulatory Commission (CERC) granted permission to petitioner IEX to set up a Power Exchange in 2007 vide orders. CERC subsequently notified the Open Access in Inter-State Transmission Regulations, 2008 and Power Market Regulations, 2010. MERC issued draft Distribution Open Access Regulations in 2011 and again in 2013, inviting objections. The final impugned regulations were notified on 25 June 2014. Multiple writ petitions were filed in 2014–2015 challenging these regulations.

Acts & Sections

  • Electricity Act, 2003: 2(47), 82, 94(3), 179, 178(2)(y)
  • Electricity Regulatory Commission Act, 1998:
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