Mumbai: The Maharashtra Electricity Regulatory Commission (MERC) has imposed a penalty of ₹1 lakh on the Maharashtra State Electricity Distribution Company Limited (MSEDCL) for failing to comply with its directive to implement the Virtual Net Metering (VNM) scheme across the state.
Introduced on September 5, 2024, the VNM policy aims to allow housing societies, group housing complexes, and collective consumers to share the benefits of solar power generation. Despite receiving formal regulatory approval, MSEDCL did not operationalise the scheme, prompting MERC to take serious note of the utility’s non-compliance.
MSEDCL attributed the delay to the ongoing development of its online application portal. However, MERC, in its September 5, 2025, order, had instructed the company to begin processing physically submitted VNM applications until the portal became functional. Even after this directive, MSEDCL failed to act, claiming that the matter was sub judice before the Bombay High Court.
Upon examining the documents, MERC found that there was no stay order from the High Court and that the petition cited by MSEDCL had no bearing on the implementation of the VNM scheme. In its order dated October 17, the Commission termed MSEDCL’s explanation “factually incorrect” and a case of “wilful non-compliance.”
Taking a stern view of the delay, MERC not only fined MSEDCL ₹1 lakh but also directed it to issue pending VNM approvals within seven days. The Commission warned that any further delay would attract an additional penalty of ₹6,000 per day until full compliance is achieved.
Reiterating the importance of adhering to regulatory directions, MERC cautioned that any future violations by the power utility or other licensees would invite stringent action under the Electricity Act, 2003.
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