BENGALURU: The Karnataka High Court on Monday directed the state government to pay Rs 7.25 per unit (KWh) of power purchased from JSW Energy. The interim order is subject to the outcome of a petition filed by JSW Energy, questioning the rate fixed by the state government before a single judge.
The division bench of Chief Justice Prasanna B Varale and Justice Krishna S Dixit passed the order after hearing the appeal filed by JSW Energy questioning the orders passed by the state government and the Karnataka Power Transmission Corporation on October 16 and 17, 2023, respectively, through which all electric supply companies (Escoms) were ordered to pay Rs 4.86 per unit.
The division bench asked the state government to file its response to the petition before a single judge within a week and requested the single judge to decide on the petition within one week after the submission of the response.
The single judge on October 27 passed the interim order directing the petitioner, subject to further orders, to continue supplying its surplus electricity to the state grid, reserving liberty to the petitioner to file a representation with the state government within a week from the date of the interim order for payments on par with the power exchange rate/s as of the date of the impugned order dated October 16. The single judge asked the state to decide the rate within two weeks and commence paying it to the petitioner.
The state government had ordered all private generators to supply power to the state grid and stipulated that Escom shall pay Rs 4.86 per unit provisionally subject to the proceedings before the Karnataka Electricity Regulatory Commission (KERC).
Questioning it, JSW Energy filed the petition before the single judge, stating that it informed the state government on August 11, through Power Company of Karnataka Limited, that it is willing to offer power at Rs 7.25 KWh (Ex-Bus) through power exchanges on a long duration contract basis. Without considering it, the state government issued the order which is not only against the Electricity Act but also incurs a loss of over Rs 10 crore per day, it argued.
Contending that the orders have been issued because the state is reeling under daily energy shortfall due to drought, the state government stated that if the petitioner is aggrieved, its remedy is under Section 11(2) of the Electricity Act and it has to approach KERC.