HC strikes down central, state green energy rules

Bengaluru: The high court recently struck down the Electricity (Promoting Renewable Energy through Green Energy Open Access) Rules-2022, issued by the central govt, as well as the Karnataka Regulatory Commission (Terms and Conditions for Green Energy Open Access) Regulations-2022.
The rules were applicable for generation, purchase, and consumption of green energy. Green Energy Open Access (GEOA) provides for consumers of certain categories to purchase renewable energy directly from generators or power exchanges. Green energy companies challenged the rules issued by the Centre and the Karnataka Electricity Regulatory Commission (KERC).
After perusing the materials on record and arguments of the parties, Justice NS Sanjay Gowda pointed out that the Parliament enacted the Electricity Act-2003 for de-licensing the entire electricity sector by establishing a regulator which would be able to promote, coordinate, and administer the generation, transmission, and distribution of the electricity generated.
The judge noted that Article 253 of the Constitution (and Entry Nos.13 and 14 of the Union List of the Constitution of India) confers power on the Parliament to make laws applicable for the whole or any part of the country to implement the treaties, agreements, or conventions to which the country is a party.
"The commitment of the country to achieve net-zero emission therefore entitles the Union to frame a law in that regard. However, this power to enact a law to achieve net-zero emission does not empower the Centre to transgress an existing law and frame rules/regulations in contravention of a law that the Parliament enacted in 2003," the judge said.
The judge cancelled the KERC regulations on the ground that it was framed under the impugned 2022 Central rules and not independently. He also directed the regulator to examine the possibility of providing the annual banking facility as sought by the generating companies.
QUOTE
If Article 253 of the Constitution contemplates a law to be made by the Parliament, necessarily, the Parliament has to pass the enactment. The central govt cannot use the power to frame rules — which is only a piece of subordinate or delegated legislation — to side-step the Parliament
Justice Sanjay Gowda