In a relief for industries using solar power, the Nagpur Bombay High Court has clarified that companies cannot be denied electricity benefits without proper rules. The court said that if extra money is taken by the power company, it must be returned. This decision came in a case filed by Haldiram Foods International Private Limited over a dispute about night-time electricity rebate. The petition was filed by the company through its Managing Director Sushilkumar Shivkisan Agrawal against Maharashtra State Electricity Distribution Company Limited (MSEDCL).

 

The company had challenged a communication issued on April 25, 2014, by MSEDCL, which denied it the benefit of night rebate on electricity consumption. Haldiram argued that it runs a large manufacturing unit in Nagpur and consumes huge electricity. To reduce dependency, the company had invested around Rs 15 crore in setting up a 1.5 MW solar power project for its own use. It claimed that as per tariff orders of the Maharashtra Electricity Regulatory Commission (MERC), it was entitled to a lower rate for electricity used during night hours (10 pm to 6 am).

 

According to the company, it could sell the solar power it generates at Rs 7.95 per unit, while it had to buy electricity from MSEDCL at Rs 7.01 per unit. However, if the night rebate was applied, the cost would come down to about Rs 4.51 per unit, which would benefit the company. The company claimed that despite this, MSEDCL did not give the rebate and instead charged higher rates between

 

April and December 2014. On the other hand, MSEDCL argued that giving such a rebate could impact other consumers and said there were no clear rules to allow this benefit in such situations. After hearing both sides, the bench of Justices Urmila Joshi Phalke and Nivedita P Mehta referred to an earlier MERC order which stated that reduction of night rebate due to solar generation should not be done until proper rules are framed. The court observed that if any excess amount was charged from the company, it must be refunded. At the same time, if any amount is still due, the power company can recover it after proper calculation. The court directed MSEDCL officials to verify all payments made by Haldiram, adjust the night rebate properly, and either recover pending dues or refund excess money as per law. Advocate Tushar D Mandlekar appeared for Haldiram, while Advocate A D Mohgaonkar represented MSEDCL.