The High Court of Karnataka has invalidated the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022 (GEOA Rules, 2022).
These rules were aimed at promoting:
Generation, purchase, and consumption of green energy.
Energy generation from waste-to-energy plants through open access.
The intent behind these rules was to support India’s international climate commitment to achieve net-zero emissions by 2070.
The court ruled that the Centre lacked legislative authority under the Electricity Act, 2003, to frame the GEOA Rules, 2022.
Under Sections 42(2) and 181 of the Electricity Act, 2003, the power to regulate transmission and open access lies exclusively with State Electricity Commissions.
The court emphasized that "all aspects of open access" fall under the State Commission's jurisdiction, not the Centre's.
The judgment partly allowed petitions filed by Brindavan Hyderopower Pvt. Ltd. and 12 other hydropower generating companies.
These companies had existing agreements for wheeling and banking with electricity transmission and distribution companies.
The Centre had invoked Section 176(2) of the Electricity Act, 2003, claiming residual powers to frame rules for carrying out provisions of the Act.
The court rejected this argument, stating:
The Centre cannot use residual powers to transgress or override existing legislative provisions.
Framing rules based on commitments for achieving net-zero emissions cannot bypass existing laws.
Along with the GEOA Rules, 2022, the court also struck down the Karnataka Regulatory Commission (Terms and Conditions for Green Energy Open Access) Regulations, 2022.
These regulations were based on the now-invalidated GEOA Rules, 2022.
The court highlighted that unless the Electricity Act, 2003, is amended, the Central Government cannot frame rules to regulate aspects that are explicitly under State jurisdiction.
It stated that the Union cannot use climate commitments to justify overreach into State-regulated domains without proper legislative authority.
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