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Madras High Court

Renewable Energy Producers ... vs Tamil Nadu Green Energy Corporation Ltd on 28 April, 2026

Author: M.Dhandapani

Bench: M.Dhandapani

                                                                              WP No. 16884 of 2026


                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS
                                               DATED: 28-04-2026
                                                     CORAM
                                   THE HON'BLE MR JUSTICE M.DHANDAPANI

                                              WP No. 16884 of 2026
                                                     AND
                                  WMP NO. 18144 OF 2026,WMP NO. 18146 OF 2026,
                                            WMP NO. 18470 OF 2026

                Renewable Energy Producers Association
                No.2, Karur Road, Modern Nagar,
                Dindigul-624 001
                Represented by its Chief Advisor cum CEO,
                Dr. K. Venkatachalam.
                                                                                 ..Petitioner(s)
                                                        Vs
                1. Tamil Nadu Green Energy Corporation Ltd
                   (TNGECL)
                   Represented by its Chairman and Managing Director,
                   No.144, Anna Salai, Chennai-600 002.

                2. Tamil Nadu Power Distribution Corporation Ltd.,
                   (TNPDCL)
                   Represented by its Chairman and Managing Director,
                   No.144, Anna Salai, Chennai-600 002.

                3. State Load Despatch Centre,
                   No.144, Anna Salai,
                   Chennai-600 002.

                4. Tamil Nadu Electricity Regulatory Commission,
                   Thiru Vi.Ka. Industrial Estate,
                   Guindy, Chennai-600 032,
                   Represented by its Secretary.
                                                                               ..Respondent(s)

                          Writ Petition filed under Article 226 of the Constitution of India for
                issuance of a Writ of Certiorarified Mandamus calling for the records of the 4 th

                                                                                      __________
                                                                                       Page1 of 9
https://www.mhc.tn.gov.in/judis
                                                                                 WP No. 16884 of 2026


                respondent in its order dated 13.08.2024 in M.P.No.23 of 2024, filed by the 2 nd
                respondent, mandating the implementation procedure for the adjustment of
                energy purchased/wheeled by the HT consumers under various open access
                sources, pursuant to the Forecasting, Scheduling, and Deviation Settlement for
                Wind and Solar Generation Regulations, 2024 (DSM Regulations), and quash
                the same, insofar as it applies retrospectively from 01.04.2024, onwards despite
                being issued only on 13.08.2024, and the directions relating to banking and the
                manner of adjustment issued in gross violation of the principles of natural
                justice, as being ultra vires, without jurisdiction, and in contravention of the
                Electricity Act, 2003 and the DSM Regulations, 2024 and consequently direct
                the respondent TNERC to issue a fresh order, with prospective effect, in
                consonance with the principles governing banking as upheld by the Hon’ble
                APTEL, and followed by TNERC in its tariff orders and after hearing the
                stakeholders, inter alia, in the matters relating to the issue of banking and the
                manner of adjustment.

                              For Petitioner(s):      Mr.R.S.Pandiyaraj

                              For Respondent(s):      Mr.D.R.Arun Kumar



                                                       ORDER

This writ petition has been filed challenging the order of the Tamil Nadu Electricity Regulatory Commission (TNERC) dated 13.08.2024 made in M.P.No.23 of 2024.

__________ Page2 of 9 https://www.mhc.tn.gov.in/judis WP No. 16884 of 2026

2.Learned counsel for the petitioner would submit that, when similar issue came up before this Court in W.P.No.14287 of 2025, this Court, by order dated 30.04.2025, granted liberty to the petitioner therein to approach the TNERC by filing an application in respect of the grievances expressed by the petitioner. This Court also directed the respondents not to implement certain directions in the impugned order, so as to enable the petitioner to approach the Commission. The learned counsel for the petitioner and Mr.D.R.Arun Kumar, learned counsel who takes notice for the respondents, would submit that similar orders can be passed in this writ petition also.

3.The order of this Court made in W.P.No.14287 of 2025, dated 30.04.2025, reads as follows :

“This writ petition is filed challenging the order of the Tamil Nadu Electricity Regulatory Commission dated 13.08.2024 made in M.P.No.23 of 2024.
2.When the matter came up for admission, the Learned Advocate General took notice on behalf of the respondents. It can be seen that the grievance that is expressed by the petitioner is that when M.P.No.23 of 2024 was filed by the respondents seeking the approval of the implementation procedure for the adjustment of energy purchased and wheeled to High Tension customers under various open access sources by virtue of Forecasting __________ Page3 of 9 https://www.mhc.tn.gov.in/judis WP No. 16884 of 2026 Scheduling and Deviation Settlement for Wind and Solar Generation Regulations, 2024 ('DSM Regulations') which came into effect from 01.04.2024, the TNERC by its order dated 13.08.2024, laid down the procedure for block-wise energy adjustments with effect from 01.04.2024. It refrained from passing any order on the banking period for WEGs thereby, maintaining the status quo with respect to the banking mechanism, in line with the orders of the APTEL. It is further contended that despite refraining from making the changes for the banking period/mechanism, the TNERC has unilaterally altered the operational framework of the Banking in contravention of the objective of the DSM Regulations, its own tariff orders and orders of APTEL concerning the banking, which according to the petitioner was without jurisdiction and in violation of the principles of natural justice. The petitioner has enumerated the relevant directions in the impugned order in paragraph No.11 of the affidavit, which is extracted hereunder for ready reference:
“11. The relevant directions in the impugned order dated 13.08.2024, unilaterally modifying the prevailing banking mechanism, without any notice, or opportunity of hearing to the affected stakeholders, are set forth below:
3.4.1 The energy accounting shall be done in 15 minutes time block basis for Open Access energy accounting purpose. Block wise / day wise generation / purchase shall be adjusted against the same block wise / day wise consumption.
3.4.2. The surplus energy, if any, available after adjustment in the respective same 15 minutes time block basis shall be considered as banked energy along with the banking charges in force and excess consumption over and above the actual injection of energy will be charged at the tariff applicable to the consumer subject to the terms and __________ Page4 of 9 https://www.mhc.tn.gov.in/judis WP No. 16884 of 2026 conditions of supply.
3.4.3. The banking of energy shall be evaluated for energy accounting on 15 minutes time block basis. The positive difference between the injected energy from Wind/Solar generator available at consumption point (excluding losses in kind) and consumer’s consumption in same 15 minutes time block basis on the same day shall be considered as banked energy and this banked energy shall be permitted to be consumed on banking cycle basis.
3.4.4 Energy banked can be adjusted during any block period except during peak hour blocks within the banking cycle. However, for the Pumped Storage System/Battery Energy Storage System (BESS), energy injected can be adjusted in any time block, including peak hour blocks 3.4.5. This order will be applicable with effect from 01-04-2024 as per the TNERC (Forecasting, Scheduling and Deviation Settlement and related matters for Wind and Solar Generation) Regulations. 2024. Commission also directs that the billing software for adjustment of energy at the consumer end for block wise/day wise generation against block wise/day wise consumption shall be made ready within 6 months from the date of issue of this order.

Till such time, adjustment of energy at the consumer end shall be made as per the relevant tariff orders issued by the Commission from time to time.

3.5.2 (i) In view of the APTEL order. Commission refrain from passing any order on banking period in respect of the WEGs and directs status-quo shall be maintained in respect of banking period for WEGs. Regarding solar generation, the banking period is continued to be one month billing period without any banking charges till banking charges are fixed by the Commission under proposed Green Energy Open Access (GEOA) Regulations.” (emphasis supplied).

3.The Learned Advocate General for the respondents would submit that it cannot be said that the TNERC did not have __________ Page5 of 9 https://www.mhc.tn.gov.in/judis WP No. 16884 of 2026 jurisdiction at all in the matter. However, he would agree with the Learned Counsel for the petitioner that there were no specific prayers that were made by the respondents in respect of those directions. To that extent, he is not in a position to dispute the contention that the directions are issued without adequate opportunity for the petitioner, who are the stakeholders and who have something to say in the matter. To that extent, it is now submitted by the Learned Counsel for petitioner that they will again approach the TNERC by way of appropriate application in respect of those directions. The same can be done. The only prayer that is made is to keep those directions in 'abeyance' till for some time so that, the respondents can approach the forum and get the directions/ clarifications in that regard.

4.In view thereof, this writ petition is disposed of keeping open the liberty of the petitioner to approach the Tamil Nadu Electricity Regulatory Commission (TNERC) itself with reference to its order dated 13.08.2024 made in M.P.No.23 of 2024 by filing such applications before the very same Commission, in respect of the grievance that is expressed by the petitioner. For a period of 8 weeks from today, the directions that are enumerated in paragraph No.11 above, shall not be implemented by the respondents so as to enable the petitioner to approach the Commission. As and when such application is filed, the Commissioner shall take up the application and dispose of on merits in accordance with law.

Consequently, connected miscellaneous petitions are closed. There shall be no order as to costs.” __________ Page6 of 9 https://www.mhc.tn.gov.in/judis WP No. 16884 of 2026

4.Since this Court, in a similar writ petition, has issued certain directions as extracted supra, this writ petition can also be disposed of in the same lines.

Accordingly, this writ petition is disposed of keeping open the liberty of the petitioner to approach the Tamil Nadu Electricity Regulatory Commission (TNERC) itself with reference to its order dated 13.08.2024 made in M.P.No.23 of 2024 by filing such applications before the very same Commission, in respect of the grievance that is expressed by the petitioner. For a period of 8 weeks from today, the directions that are enumerated in the impugned order as extracted supra shall not be implemented by the respondents so as to enable the petitioner to approach the Commission. As and when such application is filed, the Commissioner shall take up the application and dispose of on merits and in accordance with law. No costs. Consequently, connected miscellaneous petitions are closed.

28-04-2026 Index: Yes/No Speaking/Non-speaking order Neutral Citation: Yes/No MKN __________ Page7 of 9 https://www.mhc.tn.gov.in/judis WP No. 16884 of 2026 To

1. The Chairman and Managing Director, Tamil Nadu Green Energy Corporation Ltd (TNGECL) No.144, Anna Salai, Chennai-600 002.

2. The Chairman and Managing Director, Tamil Nadu Power Distribution Corporation Ltd., (TNPDCL) No.144, Anna Salai, Chennai-600 002.

3. State Load Despatch Centre, No.144, Anna Salai, Chennai-600 002.

4. The Secretary, Tamil Nadu Electricity Regulatory Commission, Thiru Vi.Ka. Industrial Estate, Guindy, Chennai-600 032.

__________ Page8 of 9 https://www.mhc.tn.gov.in/judis WP No. 16884 of 2026 M.DHANDAPANI J.

MKN WP No. 16884 of 2026 28-04-2026 __________ Page9 of 9 https://www.mhc.tn.gov.in/judis