Author: PPD Team Date: 14/02/2025
The Central Electricity Authority (CEA) has introduced a new procedure to verify the captive status of generating plants where the Captive Generating Plant (CGP) and its users are in different states.
Effective from FY 2024-25, this procedure ensures compliance with Rule 3 of the Electricity Rules, 2005, as amended on September 1, 2023. The guidelines have been approved by the central government.
The new rules mandate an annual verification process, to be conducted by CEA’s Legal Division. Applications must be submitted by May 31 each year, including authenticated data on ownership, electricity consumption, regulatory filings, and metering details. Applicants must provide affidavits and detailed data on electricity generation, user-wise consumption, and equity shareholding. Group captive setups must ensure only eligible users are included. The verification process will be completed within two months of receiving a complete application.
For multiple generating plants sharing a single grid interface, separate applications and affidavits from plant owners are required, along with authentication of total energy generation by relevant authorities.
The procedure also outlines how changes in ownership and consumption affect captive status, applying weighted average calculations. Energy Storage Systems (ESS) can be included, and special provisions exist for generating stations owned by Special Purpose Vehicles (SPVs). Plants failing to meet the requirements face disqualification, but an appeal mechanism is available.
This move aims to enhance transparency and accountability in the captive power sector. Read full document: Click Here