Maharashtra Electricity Regulatory Commission (MERC) was established by State Government under Section 17 of the Electricity Regulatory Commission Act, 1998 (14 of 1998). This Act was replaced by the Electricity Act, 2003 ( 36 of 2003) and under its first proviso of Section 81, State Electricity Regulatory Commission established under Section 17 of the Electricity Regulatory Commission Act,1998, was regarded as the State Commission, for the purposes of the Electricity Act, 2003. Apart from the State Electricity Regulatory Commissions (SERCs) at the State level, there is also a Central Electricity Regulatory Commission (CERC) at the Central level.

Prior to the advent of Electricity Act 2003 the electricity sector was governed by the Indian Electricity Act, 1910, the Electricity (Supply) Act, 1948 and the Electricity Regulatory Commission Act, 1998. Electricity Act, 2003 has replaced all these Acts.

Maharashtra Electricity Regulatory Commission (MERC) was established on 5th August, 1999 and started working on 12th August, 1999. MERC is a 3-member Commission and one of the 3 members is Chairman. All the 3 Members of the Commission are full time Members and they are appointed by State Government. Chairman is the Chief Executive of the Commission.