Karnataka High Court Nullifies Central Green Energy Rules

The Karnataka High Court has invalidated the Central Government's Green Energy Open Access Rules, 2022, citing its lack of authority under the Electricity Act, 2003. It emphasized the autonomy of the Karnataka Electricity Regulatory Commission (KERC) in regulatory matters, directing KERC to draft new regulations if necessary.

The Karnataka High Court has struck down the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022, a set of regulations introduced by the Central Government. Justice N S Sanjay Gowda ruled that framing these rules was beyond the Centre's authority under the Electricity Act, 2003, as it undermines the powers designated to the Karnataka Electricity Regulatory Commission (KERC).

In his ruling, Justice Gowda affirmed that the Electricity Act entrusts regulatory commissions with exclusive power over setting tariffs and open access, protecting them from government intervention. Consequently, the Court also nullified the Karnataka Regulatory Commission's (KERC) 2022 green energy regulations, compelling the body to devise fresh policies independently.

The court stressed the need for independent regulatory operations, reinforcing that neither the state nor central authorities should interfere. As an interim measure, the Court allowed petitioners to continue using existing facilities while recommending new regulations include an annual banking capability to support green energy initiatives.

(With inputs from agencies.)