TGERC Issues Draft Guidelines for Captive Generating Plants Verification
The draft, released by the Telangana Electricity Regulatory Commission, outlines the process for confirming the captive status of power plants and their users under the terms of the ‘Open Access Regulation, 2024’. The last date for receiving objections/suggestions is September 21, 2024.
September 09, 2024. By EI News Network
The draft procedure aims to ensure compliance with the Electricity Act, 2003, and the Electricity Rules, 2005, which define the qualifications for CGPs. A captive power plant is a power plant set up primarily for a company's own use or by a cooperative society to serve its members.
The draft specifies the process and documentation required to verify that a plant meets these criteria, ensuring it retains its captive status and the benefits associated with it.
The procedure applies to all power plants in Telangana that seek verification of their captive status. The verification process is conducted annually based on equity shareholding and consumption criteria.
For verification, captive plants must submit applications and relevant documents to the local distribution licensee by June 30 each year. The licensee consolidates the information and submits a report to the TGERC for final verification.
The commission will verify whether the plant meets the captive requirements, including that at least 26 percent of the ownership is held by captive users and at least 51 percent of the electricity generated is consumed by these users.
The draft guideline specifies that CGPs must provide several documents, including a certificate from a Chartered Accountant, proof of ownership structure, and records of electricity generation and consumption.
The draft includes provisions for changes in ownership structure and the need for annual verification of equity shares and consumption to maintain captive status.
The commission may seek clarifications from CGPs or their users during the verification process, and any failure to provide the requested information may result in the loss of captive status.
“When a shareholder or a member of the company, cooperative society, AoP or SPV as the case may be, defaults in fulfilling the consumption criteria provided under Rule 3 of Electricity Rules, 2005, and other captive user(s) together do not comply with ownership criteria of not less than 26%, the CGP will lose its captive status, and all captive user(s) shall forgo the concessions available to a captive user,” noted the draft.
TGERC is designated as the authority responsible for verifying captive status and the commission will work with local distribution licensees and other relevant entities to confirm compliance.
please contact: contact@energetica-india.net.
Aman Mehtani
Founder & Group CEO
ADM Group Offers Smart, Sustainable Solutions for Global Automotive Industry
Gaurav Dolwani
CEO
From Scrap to Sustainability: LICO Materials’ Circular Economy Approach
Gaurav Kumar
Head of Supply Chain and Manufacturing
Euler Motors Bridges Cost Gap Between EVs and ICE Vehicles with Localization
Shveta Arya
India Region Leader
Powering India’s Mobility Future: Cummins Showcases Advanced Power Solutions at Bharat Mobility
Samkit Shah
Co-Founder
Jitendra EV Leading Hybrid EV Revolution with Hydrix