BENGALURU: Observing that the power to enact a law to achieve net-zero emission cannot empower the central government to transgress the existing Electricity Act, 2003, the Karnataka High Court struck down the Centre’s Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022, and also the Karnataka Electricity Regulatory Commission (KERC) (Terms and Conditions for Green Energy Open Access) Regulations, 2022, framed by KERC, for lack of competence to frame the same.
The court directed the KERC to frame appropriate regulations if it so desires, in the matter of granting open access to green energy generators and consumers. During this exercise, the court said the KERC will only be guided by the National Electricity Policy and the Tariff Policy framed by the central government, and should independently consider the interests of all the stakeholders before framing the regulations.
Justice N S Sanjay Gowda passed the order while partly allowing a batch of petitions filed by Brindavan Hydropower Private Limited and several others questioning the validity of the rules.
The court said the role of the Centre under the Electricity Act is essentially to frame a policy and it can only issue directions to the regulator, and the regulator can only be guided by such directions and not be bound by it.
Taking cognisance of the fact that this order would leave a vacuum till the regulations are framed by the KERC independently, the court said an interim arrangement would therefore have to be made to ensure that the wheeling and banking facilities availed hitherto by the petitioners are facilitated.
After the pronouncement of the order recently, an oral request for a grant of stay of this order was made but the court refused it, saying that it has been held that the Centre lacked the competence to frame the rules in question and therefore the question of permitting it to continue would be illegal.