In Brief
Reliance Infrastructure challenged Maharashtra's electricity regulator's (MERC) decision to impose stricter efficiency norms on its Dahanu thermal power station compared to other similar units, claiming discrimination and breach of national tariff policy. The Supreme Court held that MERC's power to frame tariff regulations is legislative in nature, requiring a balance between competing policy objectives—consumer interest, financial viability, and efficiency. The Court found no constitutional infirmity in prescribing different norms based on each station's historical performance, as this incentivizes efficiency while protecting consumers. The Court also clarified that writ petitions challenging regulation validity are maintainable under Article 226, even if related appeals are pending before the Appellate Tribunal. The appeal was disposed of, affirming the High Court's dismissal of the petition but setting aside the costs imposed.
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