Kerala High Court Stays Electricity Regulatory Commission's 2025 Renewable Energy Regulations

Justice Mohammed Nias C.P. passed the interim order on a plea by Domestic On-Grid Solar Power Prosumer Forum – Kerala and its President, and stayed the Regulations for a period of one month.

The Court noted that during the last hearing before it, on November 3, the Regulatory Commission had submitted that it would issue a notification only after a public hearing and considering objections raised therein. It had told that approximately a month's time would be required for the same.

It observed:

“there shall be a direction to respondents 1 to 3 to file counter affidavits meeting the grounds/allegations raised in the writ petition, to enable this Court to consider the legality and validity of the regulations dated 05.11.2025...In the interregnum, the operation, implementation/ enforcement and all further proceedings pursuant to the notification dated 05.11.2025 will stand stayed for a period of one month.”

The petitioners had alleged that the Regulations were drafted through a fraudulent process to destroy the rooftop solar sector.

In July, while considering a public interest litigation by the petitioner, the High Court had ordered the Kerala State Electricity Regulatory Commission to conduct hybrid public hearings instead of online hearings alone while considering the revision of the Renewable Energy Regulations.

The case is next posted on December 1 (Monday).

Background

The 1^st petitioner is stated to be an association representing domestic on-grid solar power prosumers in Kerala, and was formed to protect the rights of solar energy users that invested in rooftop installations relying on the policies of the Government, KSERC, and KSEB Ltd. The 2^nd petitioner is its President.

According to them, the KSERC is no longer an independent statutory regulatory and has been captured by the Kerala State Electricity Board Ltd. (KSEBL) since the former's members are either ex-KSEB officials or persons closely connected with the political executive. They, thus, claimed that the KSERC appointments were made in violation of Section 85(5) of the Electricity Act. These persons have also been impleaded in the plea as Respondents 5 to 7, two of whom were alleged to have been involved in the corruption related to the 2014–15 Design, Build, Finance, Own and Operate (DBFOO) power purchase agreements, which caused losses of around Rs. 6000 crores to consumers.

The plea further stated that the electricity sector in the State is involved in systemic corruption.

“Instead of prosecuting the wrongdoers, the Government regularised them by appointing them as regulators, thereby using KSERC as a tool to legitimise corruption and stifle renewable energy initiatives… They contend that this “organised nexus” between respondents 1 to 3 operates like an economic crime syndicate, perpetuating corruption, suppressing renewable energy, and burdening consumers through inflated tariffs and cross-subsidies,” the Court had recorded the petitioners' allegations in its previous interim order.

In their writ petition, the petitioners have sought a direction to the State government for separation of Generation, Transmission, and Distribution functions of KSEB. It also sought for declarations that the appointment of the respondents as members to the KSERC was ultra vires the Electricity Act.

Further, among other prayers, there is also one to direct the CBI to conduct an independent and court-monitored investigation into the corruption in KSERC and KSEB.

Earlier, the petition was argued against by the respondents to be one that can be classified as a PIL and according, listed before the Division Bench considering PILs. However, the petitioners contended that they do not wish to pursue it as a PIL and the same was again listed before the Single Judge.

The petition is moved by Advocates Yeshwant Shenoy, Aysha Abraham, Adolphin Mamachan and Reji John Kallely.

Case No: WP(C) No. 39797 of 2025

Case Title: Domestic On-Grid Solar Power Prosumer Forum-Kerala and Anr v. State of Kerala and Ors.

Click to Read or Download Order

Click to Read/Download Order dated 03.11.2025

Click to Read/Download Division Bench order