Power Ministry notifies Electricity (Third Amendment) Rules, 2023: captive consumption includes power consumption by holding or subsidiary company of captive user

The Ministry of Power has notified the Electricity (Third Amendment) Rules, 2023 (“Amendment Rule”) to further amend the Electricity Rules, 2005 (“Principal Rule”). This is effective immediately.

Key Highlights:

1. The ambit of captive consumption is extended to include now include captive power consumption by a subsidiary company or a holding company of a company which is a captive user;

2. Captive status of generating plants, where both the captive generating plant and its captive user(s) are located in more than one State, will be verified by the Central Electricity Authority;

3. In Rule 3(1)(a)(i), the word “captive user” has been substituted with the word “captive user(s); and”.

Source: Ministry of Power