The Karnataka High Court has invalidated the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules 2022, introduced by the Central government for the generation, purchase, and use of green energy. In a ruling on December 20, 2024, Justice NS Sanjay Gowda stated that the Central government lacked the authority under the Electricity Act of 2003 to draft these rules. The Act specifically grants power over open access matters to State commissions, such as the Karnataka Electricity Regulatory Commission (KERC).
The Court also annulled the KERC’s 2022 regulations on Green Energy Open Access, which were aligned with the Union government’s rules, arguing that the KERC had no independent authority to frame them. Accepting the 2022 Rules would undermine the State commissions’ role in regulating green energy open access, the Court noted.
The Court emphasized that such rules, being a form of delegated legislation, cannot alter substantive provisions of the Electricity Act. It also observed that only State commissions, under Sections 42(2) and 181, have the exclusive authority to govern transmission, determination, and open access matters.
In response, the Court instructed KERC to create regulations for green energy open access if necessary. However, these regulations must align with the National Electricity Policy and the Union Tariff Policy while considering all stakeholder interests.
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