HomePolicies & Regulations ›Ministry of Power Announces Electricity Third Amendment Rules, 2023

Ministry of Power Announces Electricity Third Amendment Rules, 2023

According to the amendment, the captive status of such production plants, where captive power plants are situated in more than one state, shall be verified by the central electricity authority in accordance with the procedure released by the authority with the approval of the central government.

September 06, 2023. By Nivedita Ojha

Ministry of Power amended the rules to minimise the gap between the cost of power and the tariff approved by states and to bring down the regulatory assets in the power sector, aimed at the financial sustainability of the power sector, as per the draft amendments to the Electricity Rules, 2005 issued by the government.

According to the amendment, the captive status of such production plants, where captive power plants are situated in more than one state, shall be verified by the central electricity authority in accordance with the procedure released by the authority with the approval of the central government.

Earlier, the rules amended that a power plant could only qualify as a 'captive generating plant' if not less than 26 percent of its ownership was retained by a captive user.

The latest amendments proposed a slight alteration in the usage of the term ‘captive user’ with ‘captive users’ as it caught the attention of the consumers.

In order to flourish the regulatory provisions further, the amendments invite for the removal of sub-clause (i) of clause (a) of the Sub Rule, which determines criteria for captive power generation companies. In addition, a new clause is introduced, adding the criteria for captive power plants beyond Clause 2.
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