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Hindustan Zinc Ltd. v. Rajasthan Electricity Regulatory Commission

The document summarizes a case between Hindustan Zinc Ltd. and the Rajasthan Electricity Regulatory Commission regarding renewable purchase obligations (RPO) for captive power plants. The main issue is whether regulations imposing RPO obligations on captive power plants are valid under the Electricity Act of 2003. The parties disagree on whether the Act allows RERC to regulate captive power plants in this way and whether it hinders production from such plants. The judgment addresses whether RERC has jurisdiction to frame RPO regulations for captive plants and impose penalties for non-compliance. It also considers arguments about national energy policy and the impact on captive plant generation.

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Drishti Tiwari
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418 views9 pages

Hindustan Zinc Ltd. v. Rajasthan Electricity Regulatory Commission

The document summarizes a case between Hindustan Zinc Ltd. and the Rajasthan Electricity Regulatory Commission regarding renewable purchase obligations (RPO) for captive power plants. The main issue is whether regulations imposing RPO obligations on captive power plants are valid under the Electricity Act of 2003. The parties disagree on whether the Act allows RERC to regulate captive power plants in this way and whether it hinders production from such plants. The judgment addresses whether RERC has jurisdiction to frame RPO regulations for captive plants and impose penalties for non-compliance. It also considers arguments about national energy policy and the impact on captive plant generation.

Uploaded by

Drishti Tiwari
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Hindustan Zinc Ltd.

v.
Rajasthan Electricity Regulatory
Commission
BY-
MANSI VATS
DIVYA JAIN
MRINAL GUPTA
RPO
CAPTIVE POWER
REC-RENEWABLE ENERGY CERTIFICATES
FACTS
 In 2007- RERC issued a series of obligations, identifying
three types of entities that would need to begin sourcing a
portion of their power from renewable sources. 
 In 2010- RERC updated the rule and allowed companies to
use energy offsets or Renewable Energy Certificates (RECs)
as a valid way of complying.
  In 2015- it was settled that industrial energy users must
derive roughly 10 percent of their energy from renewable
power sources.
 More than 25 various industries argued that they should be
exempt from the renewable energy targets because RERC did
not have the authority to impose the obligations and would
hinder production from their captive power plants.
MAIN ISSUE
 whether the impugned Regulations imposing RE
Obligation upon Captive Power Plants framed by the
RERC in exercise of power Under Section 86(1)(e) of
the Act of 2003, which provides for promotion,
cogeneration of electricity from renewal source of
energy are ultra vires the provisions of the Act or
repugnant to Article 14 and 19(1)(g) of the Constitution.
CONTENTION BY THE PARTIES
 The 2003 Act , National Electricity Policy, 2005 and the Tariff Policy,
2006 had envisaged the promotion of captive generation of electricity,
which is being curtailed by the Regulations through the RPO, thereby
resulting in a lower production of energy by the captive power plants.
 The jurisdiction of the RERC to impose such obligations on HZL was
contended, since captive power plants have been shielded from all the
licensing and regulatory regimes under the 2003 Act.
 The RPO Can be imposed by the RERC under S.86(1)(b) of the 2003
Act on distribution licenses alone and not on a captive power, being a
generator of electricity.
JUDGEMENT

1. Jurisdiction under section 86 (1) (e) read with section 181 of the

2003 Act to frame the impugned Regulations in respect of

industries running their own captive power plant.

2. Applicability of section 86 (1) (e) of the 2003 Act to distribution

licences and captive power generators.


3.Imposition of penalty in the event of non-
compliance with the impugned regulations.

4. Mandate of national electricity policy and


curtailment of power generation of the
captive power plant.

5. RPO applicability on captive and open


access consumers is well within the Ambit
of Electricity Act 2003.

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