Ramayana ISPAT Pvt. Ltd. vs State Of Rajasthan 2025 INSC 424 - Electricity Act - Regulations Validity
Electricity Act, 2003 - RERC’s authority to regulate intra-state aspects of open access transactions, even when electricity is sourced from another state, aligns with the Act’s objectives and ensures effective regulatory oversight. (Para 50)
Rajasthan Electricity Regulatory Commission (Terms and Conditions for Open Access) Regulations, 2016 - High Court upheld the validity of the Regulations of 2016 holding that any inconvenience caused or even some hardship faced by the captive power generators shall not make the regulations illegal - SC dismissed appeal and held: When ‘Electricity’ which is a subject matter of Entry 38, List III is wheeled from outside the state and distributed within the state, the regulations governing such distribution within the state cannot, by any stretch, be termed to be suffering from any excess of jurisdiction. (Para 46) Considering the technical and regulatory imperatives involved, the 24-hour advance notice condition under Regulation 26(7) cannot be considered ultra vires, as it falls within the regulatory domain of the State Commission to establish fair, transparent, and non- disruptive mechanisms for open access. (Para 58) The Regulations of 2016 are consistent with the legislative intent of the Act of 2003, ensuring that open access is exercised in a manner that does not compromise system stability, fairness, or economic viability. Therefore, the regulatory framework does not foreclose open access but rather operationalizes it within reasonable constraints essential for sustaining the electricity sector. (Para 65)
