A view of the High Court of Karnataka building. The court has said the Centre lacked the legislative competence under the Electricity Act, 2003, to frame the Green Energy Open Access Rules, 2022.
| Photo Credit: File photo
In a major setback to the Central government, the High Court of Karnataka has struck down the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022, which were framed for promoting generation, purchase, and consumption of green energy, including the energy from waste-to-energy plants through open access in a bid to reach the goal of net-zero emission by 2070 as per international climate commitment.
The court said the Centre lacked the legislative competence under the Electricity Act, 2003, to frame the rules (commonly known as the Green Energy Open Access [GEOA] Rules, 2022).
Regulating powers
“Since the power to regulate the transmission, determination and, more specifically, all aspects relating to open access is conferred exclusively on the State electricity commission under Sections 42(2) and 181 of the Act, it is obvious that all aspects of open access lie within the exclusive domain of the State commission,” the court said.
Justice N.S. Sanjay Gowda passed the order while partly allowing the petitions filed by Brindavan Hyderopower Pvt. Ltd., and 12 other hydropower generating companies, who have subsisting agreements for wheeling and banking with electricity transmission and distribution companies.
The Centre, in the guise of exercising its residual power under Section 176(2) of the Act, cannot contend that it can frame rules to carry out the provisions of the Act, the court said while also striking down the Karnataka Regulatory Commission (Terms and Conditions for Green Energy Open Access) Regulations, 2022, as it was framed on the basis of the GEOA Rules, 2022.
However, the court gave liberty to the Karnataka Electricity Regulatory Commission to either frame the regulation afresh for granting open access to green energy generators and consumers if it so desires or retain its 2004 regulations on open access.
Net-zero commitment
On the Centre’s argument that the GEOA Rules were framed to fulfil India’s commitment made at the international climate change conference in Paris to achieve net-zero emission by exercising the power under Article 253 of the Constitution of India, which enables Parliament to make law for implementing any treaty, agreement or convention, the court said this constitutional power does not empower the Centre to transgress an existing law and frame rules/regulations in contravention of the Electricity Act, which was enacted in 2003.
“To put it differently, Parliament is empowered to amend the Electricity Act if it [the Centre] is of the view that the nation has to implement any international treaty that it had signed. Unless the Electricity Act is amended and the Central government is empowered to frame rules under the said amendment, the Union cannot use the commitment given by it to achieve net-zero emission to frame rules in transgression of an existing law,” the court made it clear.
Published – January 07, 2025 08:07 pm IST
