MERC Delivers First Ruling Enforcing the Supreme Court’s Judgment on Railways’ CSS & AS Liability

The Maharashtra Electricity Regulatory Commission (MERC) has directed Indian Railways to make an interim payment of ₹3,351 crore towards outstanding Cross Subsidy Surcharge (CSS) and Additional Surcharge dues claimed by Maharashtra State Electricity Distribution Company Limited (MSEDCL). The order is the first regulatory ruling implementing the Supreme Court’s 8 May 2026 judgment affirming Railways’ liability for CSS and Additional Surcharge on open access electricity consumption.

Supreme Court Railways Electricity Charges

The Maharashtra Electricity Regulatory Commission has directed Indian Railways to pay ₹3,351 Crore by way of an interim payment towards outstanding Cross Subsidy Surcharge and Additional Surcharge claimed by Maharashtra State Electricity Distribution Company Limited (MSEDCL).

This is the first order by any State Electricity Regulatory Commission giving effect to the Hon’ble Supreme Court’s judgment dated 8 May 2026, which conclusively affirmed Railways’ liability to pay such charges on open access consumption. Significantly, this substantial interim protection was secured within three weeks of the Supreme Court’s ruling.

The order marks a decisive step towards reinforcing regulatory discipline and the timely recovery of legitimate dues in the power sector.

Cyril Amarchand Mangaldas represented MSEDCL. The team was led by Vishal Binod, Partner; with Sagnik Maitra, Senior Associate; and Swadha Sharma, Associate.

Join the discussion

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.