Public hearings are essential for stakeholder engagement in regulatory processes, and discontinuing established practices without valid reasons is subject to judicial review for arbitrariness.

JUDGMENT :

Nitin Jamdar, C. J.

The subject matter of this Public Interest Litigation is the decision of the Kerala State Electricity Regulatory Commission to conduct only an online public hearing, and not a physical hearing, in connection with the draft regulations pertaining to renewable energy.

2. The Petitioner – Domestic On-Grid Solar Power Prosumers Forum is a registered association formed with the object of ensuring the welfare and protection of the rights of all solar energy users in Kerala, particularly domestic on-grid solar power prosumers. The Respondent – Kerala State Electricity Regulatory Commission, is a statutory body constituted under Section 82 of the Electricity Act, 2003 .

3. The State Police Chief and Director General of Police, Police Headquarters, Thiruvananthapuram; and the City Police Commissioner, Office of the City Police Commissioner, Thiruvananthapuram, are impleaded as additional respondents.

4. The Electricity Act, 2003 (Act of 2003), under which the Respondent – Commission is constituted, is enacted to consolidate the laws relating to generation, transmission, distribution, trading, and use of electricity, and generally for taking measures conducive to the development of the electricity industry, protecting the interest of consumers and the supply of electricity to all areas, promoting efficient and environmentally benign policies, and establishing Regulatory Commissions, such as the Respondent. Part II of the Act of 2003 deals with the National Electricity Policy and Plan. Parts III to VI address the modalities, including generation, licensing, transmission, and distribution of electricity. In Part VII of the Act of 2003, tariffs are regulated under Section 61 . Under Section 62 , the procedure for tariff order is specified, and Section 66 deals with the development of the market, where the Appropriate Commission is enjoined to promote the development of a market in the manner specified in the National Electricity Policy. Part VIII deals with the works of licensees. Part IX deals with the constitution and functions of the Central Electricity Authority. Part X deals with the constitution, powers, and functions of the Regulatory Commissions.

5. Under Section 82 of Part X of the Act of 2003, the State Government is empowered to constitute a State Commission, known as the “State Electricity Regulatory Commission”, to discharge various functions as outlined in the scheme of Section 86. As per clause (a) of Section 86(1), the State Commission shall determine the tariff for generation, supply, transmission, and wheeling of electricity, whether wholesale, bulk, or retail. The State Commission, under clause (b) of Section 86(1), is empowered to regulate the electricity purchase and procurement process of distribution licensees and electricity traders, and under clause (e) of Section 86(1), the State Commission promotes cogeneration and generation of electricity from renewable sources of energy by providing suitable measures for connectivity with the grid. Section 181 empowers the State Commissions to make regulations. Such regulations can be made in particular and without prejudice to the generality of the powers specified therein, including any other matter which is to be, or may be, specified under clause (zp). As per sub-section (3) of Section 181 , all regulations made by the State Commission under the Act of 2003 shall be subject to the condition of previous publication.

6. On the aspect of previous publication referred to under Section 181 (3), the Ministry of Power, Government of India, in exercise of the powers conferred under sub-section (1) and cla