MoP streamlines Requirements of Captive Generating Plant vide Electricity (Amendment) Rules, 2023

On 30-6-2023, the Ministry of Power notified the Electricity (Amendment) Rules, 2023 to amend the Electricity Rules, 2005. The provisions came into force on 30-6-2023.

Key Points:

1. Rule 3 relating to Requirements of Captive Generating Plant has been revised.

   Earlier, to qualify as a “Captive Generating Plant” (‘CGP’) 26% of the ownership was to be held by the captive user. Now, along with 26% ownership with the captive user, if the CGP is set up an affiliate company then, 51% of the ownership should be held by the captive user in that affiliate company.

2. The following Rules have been inserted:

   • 4-A- it says that where any entity has been granted licence under Section 14 the Electricity Act, 2003 (‘the Act’), relating to Grant of Licence, the period of the licence will be in accordance with the terms and conditions of the licence granted by the Appropriate Commission;

   • 4-B- it says that where an entity is a deemed licensee under Section 14 first, second and fifth proviso of the Act, the period of the licence will be 25 years from the date of the coming into force of the Act;

   • 4-C- it says that the licence granted by the Appropriate Commission under Section 14 of the Act and the deemed licence under first, second and fifth proviso to said section 14 will be deemed to be renewed unless the same is revoked:

Exceptions:

1. Where the licence has been renewed for a particular period before the notification of these Rules, the renewal will be deemed to have been done under these rules.

2. This Rule will not apply to the licence granted to transmission developers which are selected through tariff-based bidding under Section 63 of the Act.