Karnataka High Court Strikes Down Centre's Green Energy Open Access Rules, Says It Lacks Legislative Competence
23 hours, 52 minutes ago

Karnataka High Court Strikes Down Centre's Green Energy Open Access Rules, Says It Lacks Legislative Competence

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The Karnataka High Court has struck down the Electricity Rules 2022 framed by the Central Government for generation, purchase and consumption of green energy i.e., electrical energy from renewable sources of energy. If the Parliament made a law [specifically conferring power on the Regulator to frame Regulations which governed every aspect of open access, it is inconceivable that the Central Government can side-step the requirement of the Parliament enacting a law in that regard and straight away proceed to frame the impugned Rules.” Significantly, the Court also struck down the Karnataka Regulatory Commission Regulations, 2022 which were framed by KERC under an obligation cast by the now invalidated Central Rules. Referring to various provisions under the Act the court said “It is the State Commission alone which is conferred with the responsibility of introducing open access, determining charges for wheeling and payment of surcharge, would, by itself, clearly indicate that no other entity apart from the State Commission can even attempt to get involved in the matters of distribution and, more importantly, providing open access.” Emphasising that the main purpose of creating a Regulatory Commission is to ensure that there is an independent and impartial body to deal with the charges that can be levied in the matter of open access, and this is obviously with the intent that the Regulatory Commission would ensure a fair determination of the charges that would become payable. The court said “The entire ambit of electricity supply is to be administered by the Regulatory Commission and the Government has not been conferred with any power or responsibility to interfere or interject in this process.” Following which it held “Since the power to regulate the transmission, determination and, more specifically, all aspects relating to open access is conferred exclusively on the State Commission under Sections 42 and 181 of the Electricity Act, it is obvious that all aspects of open access lie within the exclusive domain of the State Commission. Since the power to administer and monitor open access is conferred on the State Commission, it is obvious that the Central Government does not have the power to frame any Rules.” It added “The Central Government cannot, in the guise of exercising its residual power under Section 176 of the Act, contend that it can frame rules to carry out the provisions of the Act.” Further it said, “If the impugned Rules framed by the Central Government are accepted, then the aspect of providing open access to renewable sources of energy as specified by the State Commissions stands nullified.

History of this topic

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