Karnataka High Court strikes down Green Energy Open Access Rules 2022

Justice N S Sanjay Gowda also struck down the Karnataka Regulatory Commission (Terms and Conditions for Green Energy Open Access) Regulations, 2022, saying it was framed since it was required by the central rules.

Justice N S Sanjay Gowda passed the order on petitions filed by several hydropower companies against the two Rules, with the respondents in the case being the State, Centre, and various electricity distributors. They argued that under the Electricity Act, the power to frame such regulations was exclusively granted to the State Commission and not the Centre. The petitioners also said that the mentioned rules framed by the Karnataka Electricity Regulatory Commission (KERC) would also have to be struck down as they were framed in accordance with the central rules and not the power conferred to them independently.

Justice Gowda observed since the Electricity Act conferred all powers relating to transmission, determination, and open access to the relevant State Commission, the Central Government could not have the power to frame rules.

“The apex court in the case of Naresh Chandra Agarwal has laid down the law that a rule-making body must function within the purview of the authority conferred to it… If the provisions of the Electricity Act exclude the Central Government from playing any role in the matter pertaining to granting open access and specifically confers the powers in relation to open access only to the Appropriate Commission, this substantive provision of administering open access cannot be usurped by the Central Government by placing reliance on the residuary powers granted to frame rules to carry out the purposes of the Electricity Act.”