In exercise of the powers conferred under sub-rule (3) of Rule 3 of the Electricity Rules, 2005, the Central Electricity Authority, with the approval of Central Government, hereby issues the “Procedure for verification of captive status of such generating plant, where Captive Generating Plant and its Captive User(s) are located in more than one state”. 

Objective: The objective of this procedure is to verify the captive status of such generating plants by the Central Electricity Authority where Captive Generating Plant (CGP) and its User(s) are located in more than one State, as per the requirements of Rule 3 of the Electricity Rules, 2005

Applicability

• This procedure shall be applicable for all power plants and consumers, who desire to submit their claim for verification as CGP and associated Captive User(s) to the Authority in accordance with sub-rule (3) of Rule 3 of the Electricity Rules, 2005.
• This procedure shall be applicable from FY 2024-25..

What is Captive Status? 

“Captive Status” refers to a situation where a power generating plant primarily produces electricity solely for its own owner’s consumption, meaning the majority of the generated electricity is used by the entity that owns the plant, not sold to the wider grid, and usually requires the owner to hold a significant ownership stake in the plant to qualify as “captive” usage. It’s a dedicated power source for a specific user or group of users. 

1. Verification and Data Submission Requirements for Captive Generating Plants (CGP)

• Data Submission: CGPs are required to submit authenticated data on actual electricity generation and consumption by the captive user(s) within fifteen days after receiving a request from the concerned authority. This data must be authenticated by the State Load Dispatch Centre (SLDC) or Regional Load Dispatch Centre (RLDC). The data must be submitted in a specified format when applying for verification of the captive status. 

• Newly Commissioned Stations: If a generating station is newly commissioned, the Commercial Operation Date (COD) will be considered the start date for the financial year for determining the captive status. For subsequent years, the standard financial year from April 1st to March 31st will apply. 

• First-time Captive Status: For stations applying for captive status for the first time, the date of approval by the Board of Directors, declaring the plant as a captive generating plant, will be considered as the start date for determining captive status for the first financial year. For future years, the period from April 1st to March 31st will be used. 

• Verification Criteria: The verification of consumption is based on net electricity generated and measured at the metering point of the generating station. This metered generation data must be identified for captive use. 

2. Metering and Communication Requirements

• Separate Interface Meters: Each CGP or generating unit identified for captive use must install a separate Interface Meter. This meter must be equipped with real-time communication capabilities with SLDC/RLDC, as per the specifications set out in the Central Electricity Authority (CEA) Metering Regulations (2006), which may be amended from time to time. 

• Captive Users’ Meters: Captive users must have separate Interface Meters with real-time communication capabilities with RLDC, SLDC, or Discoms, in accordance with the Metering Regulations. 

• Metering for ESS: If electricity consumption occurs through an Energy Storage System (ESS), each unit of the ESS must also have a separate Interface Meter with real-time communication, ensuring compliance with the Metering Regulations. 

• Metering for Subsidiaries/Holding Companies: If a Captive User wishes to claim electricity consumption by its subsidiary or holding company, that company must also have a separate Interface Meter with real-time communication to RLDC or SLDC. 

• Manufacturing Industry CGPs: If a CGP is integral to a manufacturing industry and located within the premises of the manufacturing facility, the industry must install a separate Interface Meter with real-time communication capabilities with the concerned Distribution Licensee. 

• Multiple Plants at Same Pooling Sub-Station: In cases where multiple generating plants are connected at the same pooling sub-station, each plant must install its own Interface Meter with real-time communication, ensuring that the meter can communicate with SLDC, RLDC, Discoms, or QCA (Quality Control Agent), as per the Metering Regulations. 

3. Additional Provisions for Multiple Generating Plants with Single Interface

• Separate Applications: Each CGP connected at the same pooling sub-station with a single interface must submit a separate application for verification of its captive status. 

• Affidavit Submission: Along with the application, an affidavit (Format IV) signed by the authorized QCA signatory and all plant owners connected at the same interface must be provided to the verifying authority. 

• Energy Data Submission: Each CGP must submit the total energy generated by all the generating plants connected to the pooling sub-station. This energy data must be authenticated by SLDC, RLDC, Discoms, and QCA at the time of submission for verification. 

• QCA Certification: The QCA is responsible for certifying the energy data based on the metering information of each generating plant, including the CGP connected at the same pooling sub-station. 

• Metered Data Inspection: If required, the verifying authority has the right to inspect the metered data for all generating units connected at the pooling sub-station to verify the total generation data. 

• Registration Certificate Submission: The CGP must submit the Registration Certificate of the QCA issued by the SLDC along with the verification application. 

4. Appeal Process for Captive Status Verification

• First Appeal: If an applicant is dissatisfied with the decision of the verifying authority, they can file an appeal to the Chief Engineer, Legal Division, Central Electricity Authority (CEA). This appeal must be made within thirty days of receiving the decision. The Chief Engineer will dispose of the appeal within 45 days of receiving it. 

• Second Appeal: If the applicant is still dissatisfied after the first appeal, they can make a second appeal to a committee constituted by the CEA, which includes members from various departments within the Authority. The second appeal must be filed within thirty days of receiving the first appeal’s decision. 

This summary provides an overview of the procedural requirements for the verification of captive generating plants, along with the metering and appeal processes. It also includes detailed specifications for applications, data submission, and the verification of energy usage, ensuring compliance with regulatory standards.