Karnataka High Court stays CERC’s new regulations imposing higher penalty for deviation on renewable energy firms
The Karnataka High Court has temporarily stayed the implementation of certain provisions of the CERC's new DSM Regulations affecting renewable energy firms. This decision comes in response to a petition from the National Solar Energy Federation of India, which argued that the new regulations imposed stricter penalties without proper consultation. The court's order allows the petitioners to continue operating under the previous DSM regime while the case is heard.
- ▪The Karnataka High Court stayed the operation of two provisions of the CERC's DSM Regulations, 2024.
- ▪The National Solar Energy Federation of India challenged the legality of the new regulations, citing a lack of consultation.
- ▪The court's interim order allows petitioners to adhere to the earlier DSM regime while the case is pending.
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In a temporary relief for the renewable energy sector across the country, the High Court of Karnataka has stayed the operation of the two key provisions of the Deviation Settlement Mechanism and Related Matters (DSM) Regulations, 2024, of the Central Electricity Regulatory Commission (CERC), altering the formula for computing deviation charges, imposed stricter deviation bands, and prescribed enhanced penalties with effect from April 1.Justice K.S. Hemalekha passed the interim order on a petition filed by the National Solar Energy Federation of India (NSEFI) and some of the individual renewable energy generators challenging the legality of Regulations 6(2)(b) and 8(4) of the 2024 Regulations.Altering formulaThese provisions sought to alter the computation formula for grid deviations and…
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