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MERC Approves Case-C Deviation Volume Limits for Small DISCOMs up to 250 MW

The Maharashtra Electricity Regulatory Commission (MERC) has approved deviation volume limits for distribution licensees and deemed DISCOMs with peak demand up to 250 MW, adopting the Maharashtra State Load Despatch Centre’s (MSLDC) “Case-C” demand slab approach. This move aims to address regulatory gaps for smaller DISCOMs whose deviation limits could not be reasonably determined under the existing 2019 formula-based system.

Previously, entities with demand up to 20 MW had fixed limits of 1–2 MW, while larger ones followed the non-coincident peak demand (NCPD) formula. However, new mid-sized DISCOMs like Adani Electricity SEEPZ, with about 30 MW peak demand, fell between the two frameworks. The new Case-C slabs, developed after analyzing 2023 deviation data, ensure more practical limits for DISCOMs up to 250 MW, while those above this threshold will continue under the NCPD-based formula.

MERC observed that under the Case-C model, smaller DISCOMs exceeded their limits in only 0–26% of time blocks, proving the approach’s effectiveness. The Commission finalized the provisional limits issued in March 2025 for FY 2025–26 and directed MSLDC to implement them. This decision provides regulatory clarity and flexibility for smaller DISCOMs, reducing operational inefficiencies and ensuring compliance within Maharashtra’s power deviation framework.