The matter has now been deferred to September 10, while the MERC order remains in effect.
The dispute dates back to December 2025, when MERC rejected MSEDCL’s plea seeking to quash invoices raised by JSW Energy and allowed the power producer’s petition.
The order effectively required MSEDCL to make payments of around ₹600 crore to JSW Energy, including tariff dues under the power purchase agreement and applicable late-payment surcharge.
MSEDCL subsequently challenged the decision before the Appellate Tribunal for Electricity (APTEL).
MERC sought to revisit its own order
The case took an unusual turn during proceedings before APTEL, when MERC indicated that its December 2025 order could be legally unsustainable and sought permission to reconsider the order.
MSEDCL had sought to withdraw its APTEL appeal with liberty to approach MERC for a review.
However, in its order dated August 19, APTEL allowed MSEDCL to withdraw the appeal but rejected its request for liberty to approach MERC with a review petition.
APTEL described MERC’s position as unusual and unconventional. JSW Energy had opposed the move, arguing that the regulator could not effectively revisit its own order after deciding the dispute.
With APTEL refusing to grant the review route, the ₹600-crore relief granted by MERC remains intact for now.
SC had earlier directed ₹250 crore interim payment
The dispute had also reached the Supreme Court earlier this year. On April 30, 2026, the apex court directed MSEDCL to make an interim part-payment of ₹250 crore to JSW Energy and asked APTEL to reconsider MSEDCL’s interim application.
The Supreme Court order followed MSEDCL’s challenge to an APTEL interim order that had rejected its plea seeking a stay on the MERC order.
MERC had earlier held that the Centre’s direction under Section 11 of the Electricity Act, 2003, did not apply to JSW Energy’s Ratnagiri unit and had directed MSEDCL to pay the tariff under the power purchase agreement dated February 23, 2010, along with the applicable late-payment surcharge.
Earlier this month, the company said that it had added 1,166 MW of renewable capacity since April 2026, taking renewables to around 60% of its total installed capacity.
Following the acquisition of Maruti Clean Coal and Power, JSW Energy’s total installed generation capacity stands at 14,920 MW. Its renewable portfolio includes wind, solar, hybrid and hydro capacity, while thermal capacity stands at 5,958 MW.
The company remains on track to add 3 GW of greenfield capacity in FY27.
Shares of JSW Energy ended 0.26% higher at ₹546.10 on Tuesday. The stock has gained nearly 9% so far in 2026.
