Petition for Approval and Adoption of tariff determined for procurement of short-term power purchase – EQ
Summary:
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## ⚖️ **Case Overview**
**Case No.:** 181 of 2025
**Order Date:** 1 September 2025
**Petitioner:** Maharashtra State Electricity Distribution Company Ltd. (MSEDCL)
**Coram:**
* Mr. Sanjay Kumar – Chairperson
* Mr. Anand M. Limaye – Member
* Mr. Surendra J. Biyani – Member
**Subject:**
Approval and adoption of tariff discovered through competitive bidding for **short-term power procurement** for the following periods:
* **17 August 2025 to 30 November 2025**, and
* **01 February 2026 to 31 May 2026**.
Also, approval for fixing a **ceiling rate** for short-term power purchases for **FY 2025–26** and **FY 2026–27**.
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## ⚡ **Background and Need for Power Procurement**
### **Demand–Supply Conditions**
* MSEDCL cited **seasonal variations** (post-monsoon “October Heat”, increased irrigation load, and Rabi crop season) as major reasons for shortfalls in generation capacity.
* Expected **peak demand**:
* October 2025 – 23,179 MW
* February 2026 – 27,419 MW
* March 2026 – 26,996 MW
* April 2026 – 26,546 MW
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## 🏢 **Adopted Procurement & Tariffs**
**Approved Power Purchase (Extract):**
| Period | Tariff (₹/Unit) | Total MW | Major Bidders |
| ———— | ————— | ——– | ———————————————————————— |
| Aug 2025 | 4.99–5.30 | 855 | PTC India, TATA Power Trading, Manikaran Power, NTPC Vidyut Vyapar Nigam |
| Sep 2025 | 5.27–5.40 | 920 | PTC India, NTPC Vidyut Vyapar Nigam, Jindal Power |
| Oct 2025 | 4.91–5.20 | 1,295 | PTC India, NTPC, TATA Power Trading |
| Nov 2025 | 4.90–5.01 | 510 | PTC India, TATA Power Trading |
| Feb 2026 | 5.36–5.45 | 635 | NTPC, Manikaran, TATA Power Trading |
| Apr–May 2026 | 6.40–6.45 | 1,340 | NTPC, PTC, Manikaran Power |
| | | | |
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## 📊 **Tariff Comparison & Competitiveness**
* Previous short-term tender (FY 2024–25): rates ranged **₹5.50–6.80/unit**.
* Current tender (ET-52): rates between **₹4.91–6.45/unit**, found competitive.
* Commission deemed discovered tariffs reasonable under Section 63 of the Electricity Act, 2003.
* Procurement for April–May 2026 exceeds ceiling of ₹5.50/unit but remains below the previously approved cap of ₹8.50/unit (FY 2024–25).
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## 💰 **Ceiling Tariff Decision**
* **FY 2025–26:** Ceiling remains ₹5.50/unit (no change).
* **FY 2026–27:** MERC did **not revise** ceiling tariff; will review later if needed.
* The overall **weighted average rate** of short-term power procurement is expected to remain within the approved range.
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## 🧮 **Commission’s Key Observations**
1. MSEDCL’s demand forecasts were **AI/ML-based**, showing strong seasonal demand trends.
2. Short-term procurement justified due to the **760 MW gap** created by TPC Mundra’s withdrawal.
3. Bidding process was transparent and competitive under **MoP 2016 guidelines**.
4. Tariffs discovered for April–May 2026 (₹6.40–6.45/unit) are **reasonable and adopted**.
5. No change to ceiling rate at this stage; MSEDCL can approach MERC later if necessary.
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## 🏁 **Final Order**
1. **Petition (Case No. 181 of 2025)** and **IA No. 98 of 2025** — **allowed**.
2. **MSEDCL is permitted** to procure short-term power:
* From **17 August 2025 to 30 November 2025**, and
* From **1 February 2026 to 31 May 2026**,
at discovered tariffs under tender ET-52.
3. The Commission **adopts** and **approves** the discovered tariffs (₹4.99–6.45/unit).
**Signed by:**
* Surendra J. Biyani (Member)
* Anand M. Limaye (Member)
* Sanjay Kumar (Chairperson)
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