Maharashtra Electricity Regulatory Commission (MERC), the state power regulator, has made it clear that it is not interested in taking a fresh look at the power purchase agreements (PPAs) signed before its constitution on August 5, 1999.
MERC, however, said in the order issued on September 14, 2001, that fresh tariff revisions and amendments to the PPA have to be approved by it. The verdict was delivered in the case between Sunflag Iron & Steel Company and the Maharashtra State Electricity Board (MSEB).
MERC officials clarified that this would not have any bearing in the ongoing case between the Dabhol Power Company and MSEB on the jurisdiction of MERC to adjudicate on various disputes between the two sides. MSEB and DPC are currently feuding in the high court over the jurisdiction of MERC to look into disputes between them. MSEB has taken the line that MERC is the right forum, while DPC says disputes should be resolved through international arbitration.