Premium

State has power to direct generators to supply electricity to grid in extraordinary circumstances: Karnataka HC

The Karnataka High Court rejects private companies’ contention that the ‘appropriate Government’ mentioned under the Electricity Act would be the Centre.

2 min readBengaluruDec 24, 2025 10:05 AM IST

The government directive had come in the wake of hydroelectric shortages in 2023.

The Karnataka High Court has ruled that the state possesses the power to direct power generators to supply available electricity to the grid under certain circumstances as laid down in the Electricity Act.

A bench of Justices Anu Sivaraman and Rajesh Rai passed the order on December 19 while hearing the state’s appeal against a single-bench order that ruled in favour of private companies that had challenged a government directive that all electricity they generate be supplied to the grid at a tariff of Rs 4.86 per unit. The government directive had come in the wake of hydroelectric shortages in 2023.

Advocate-General Shashikiran Shetty submitted on behalf of the state that the government order had been passed under section 11 of the Electricity Act, which enables directions from the “appropriate Government” to electricity generators in extraordinary circumstances. Citing a prior judgment of the court, he submitted that failed monsoons and reservoir depletion, among other things, would be an extraordinary circumstance.

The opposing counsel argued that since the sales of electricity involved more than one state, the Centre would actually be the “appropriate Government” and that a mere electricity shortage would not be an extraordinary circumstance.

The bench did not agree with the contention of the private companies, stating, “We are of the view that “appropriate government”, as defined in Section 11 of the Act, must be interpreted contextually to mean the State Government for embedded generators facing State-specific extraordinary circumstances, rather than rigidly applying the definition…”

While ruling in favour of the state’s appeal, the bench noted, “It could be gathered that the notification was issued in an extraordinary circumstance, the public order arising from natural calamities, such as failed monsoon, reservoir depilation, recorded peak demand of 16,950 Mega Watt and energy consumption of 294 Mega Unit in the month of August 2023 owing to a monsoon deficit which paved way to a dire situation. It is pivotal to note that the State Government took the decision as a remedial and protective one in the State’s interest.”