BENGALURU: Karnataka HC recently struck down two rules governing generation, purchase and consumption of green energy – Electricity (Promoting Renewable Energy through Green Energy Open Access) Rules-2022, issued by Centre, and Karnataka Electricity Regulatory Commission (Terms and Conditions for Green Energy Open Access) Regulations-2022.
Green Energy Open Access provides for consumers of certain categories to purchase renewable energy directly from generators or power exchanges. Green energy companies challenged the rules issued by Centre and KERC.
In its order, HC said Centre cannot put in place rules that are in contravention of a law enacted by Parliament. It said Parliament enacted Electricity Act-2003 for de-licensing electricity sector by establishing a regulator that would be able to promote, coordinate, & administer generation, transmission and distribution of electricity.
It noted that India’s commitment to achieve net-zero emission entitles Centre to frame a law in that regard, as Article 253 of the Constitution confers power on Parliament to make laws applicable for the whole or parts of the country to implement the international treaties, agreements or conventions to which the country is a party. “However, it does not empower Centre to transgress an existing law,” it said.
HC also directed state regulator to examine possibility of providing annual banking facility, as sought by generating companies.
