Karnataka High Court stays CERC’s new regulations imposing higher penalty for deviation on renewable energy firms

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.

Excerpt limited to ~120 words for fair-use compliance. The full article is at The Hindu.