THE
JHARKHAND GAZETTE
EXTRAORDINARY
PUBLISHED BY AUTHORITY
19 VAISHAKH 1946 (S)
RANCHI, THURSDAY 9th MAY, 2024
JHARKHAND STATE ELECTRICITY REGULATORY
COMMISSION
--------
NOTIFICATION
9th May, 2024
Jharkhand State Electricity Regulatory Commission (Verification of
CaptiveGenerating Plants and Captive Consumers) Regulations, 2024
Notification No. 101--In exercise of powers conferred under sub-section (1) of
Section 181, read with Section 9of the Electricity Act, 2003 and all other powers
enabling it in that behalf, the Jharkhand State Electricity Regulatory Commission,
hereby frames the following Regulations.
1. Objective
1.1. The objective of these regulations is to specify a methodology for verification of
status of Captive generating plants and Captive User, when consumers import
power from their respective Captive generator(s) located either within the
State or outside the State and consequences of not meeting the conditions of
either Captive generator or Captive User.
2. Short Title and Commencement
2.1. These Regulations may be called the Jharkhand State Electricity Regulatory
Commission(Verification of CaptiveGenerating Plants and Captive Consumers)
Regulations, 2024.
No. 258
Jharkhand Gazette (Extraordinary), Thursday 9th May, 2024
2
2.2. These Regulations shall come into force from the date of their publication in
the Jharkhand State Government Gazette.
3. Scope and Extent of Applications
3.1. The present procedure is applicable to all power plants functioning/ seeking
status as Captive Generating Plant and having one or more Captive
consumers in the State of Jharkhand, irrespective of the fact whether the
Captive generating station is within the State of Jharkhand or not.
4. Definitions and Interpretation
4.1. In this Regulation unless the context otherwise requires:
a) ‘Act’shall mean the Electricity Act, 2003 and subsequent amendments
thereof;
b) Association of Persons:shall mean formation of companies with charitable
objects, etc.; Where it is proved to the satisfaction of the Central
Government that a person or an association of persons proposed to be
registered under this Act as a limited company.
c) ‘Captive generating plant’or ‘CGP’shall mean a Captive generating plant
as defined in the Act read with Rule 3 of the Electricity Rules, 2005, as
amended from time to time;
d) ‘CaptiveUser’shall meanthe end User of the electricity generated from its
own Captive Generating Plant and the term “Captive Use” shall be
construed accordingly;
e) Company: shall mean a company incorporated under Company Act 2013
or under any previous company law.
f) ‘Electricity Rules, 2005’shall meanthe Rules notified by the Central
Government vide G.S.R. 379 (E) dated 8th June 2005 and as amended from
time to time;
g) Registered Cooperative Society:shall mean companies capable of being
registered; For the purposes of this Part, cooperative society, society or any
other business entity formed under any other law for the time being in force
which applies for registration under this Part.
h) Special Purpose Vehicle: shall mean a legal entity owning, operating and
maintaining a generating station and with no other business or activity to
be engaged in by the legal entity.
i) ‘State Load Despatch Centre (SLDC)’ shall have the same meaning as
defined under Electricity Act, 2003;
j) ‘Year’shall mean a financial year from 1stApril to 31stMarch;
Jharkhand Gazette (Extraordinary), Thursday 9th May, 2024
3
4.2. Words and expressions used in these Regulations and not defined herein but
defined in the Act shall have the meanings respectively assigned to them in
the Act.
4.3. Reference to any Act, Rules, and Regulations shall include the amendment(s),
consolidation(s), or re-enactment(s) thereof.
4.4. All proceedings under these Regulations shall be governed by the JSERC
(Conduct of Business) Regulations, 2016, as amended or re-enacted from time
to time.
5. Procedure for Verification of the Status of CGP
5.1. The Commission will verify the status of CGP and CaptiveUser after the end of
each financial year with respect to the consumption and equity shareholding
criteria stipulated in these regulations on the basis of data submitted by the
CGP and their CaptiveUser.
5.2. Before the 15th of May of each year, the CGP and their CaptiveUser must
submit an affidavit to the Commission in the specified format(s), detailing
previous year electricity generation, User-wise consumption, and equity
shareholding.
5.3. Based on the affidavit submitted by such CGP and CaptiveUser, the
Commission shall take the assistance from concerned RLDC, SLDC, and
Distribution Licensee (in whose area the CGP or their CaptiveUser are located)
for the verification of the Captive status of CGP or CaptiveUser.
5.4. The Commission may seek any clarifications from the CGP, and confirm the
CGP status for the previous financial years latest by 30th of June of each year.
5.5. In case the Commission does not receive requite data and document for the
purpose of verification of Captive status within the time frame affixed in this
procedure, it would be free to determine the statues of the plant with the data
available to it.
5.6. The Commission shall intimate the CGP status to the CGPs/CaptiveUser and
distribution licenses by the 15th July of each financial year.
5.7. Verification of consumption criteria: -
a. For unit(s) which has/have been identified for Captive use, verification of
criteria of consumption shall be based on the net electricity generated from
this/these generating unit(s) in a generating station, i.e., the gross
electricity generated less auxiliary consumption.
b. The net electricity generated shall be determined on annual basis at the
end of the year.
c. Verification criteria for various types of CaptiveUser shall be as follows:
Jharkhand Gazette (Extraordinary), Thursday 9th May, 2024
4
Sl. no.
Type of CaptiveUser
Criteria
1
Single Captive User
The self-consumption shall not be less
than
51%
of
the
net
electricity
generated on an annual basis.
2
Partnership firm/ Limited
Liability Partnership (LLP)
The self-consumption shall not be less
than
51%
of
the
net
electricity
generated on an annual basis
3
Association of Persons (AoP)
The CaptiveUser shall consume not
less than 51% of the net electricity
generated on annual basis for Captive
use in proportion to their share in
thepower plant within the variation
not exceeding 10%.
(i.e
proportionality
test
shall
be
calculated
for
51%
of
aggregate
generation and not for consumption
beyond 51% by Captive consumer.)
4
Cooperative Society
Members of Society shall collectively
consume not less than 51% of the net
electricity generated on an annual
basis
5
Special Purpose Vehicle
(SPV)
The CaptiveUser shall consume not
less than 51% of the net electricity
generated
on
annual
basis
in
proportion to their shares in the units
identified for Captive use.
d. Manner of assessment of data related to generation from CGP and
consumption by the CaptiveUser: -
Sl.
no.
Location
Criteria
1
CGP and its
CaptiveUser are
co-located
a. For CGP:
Net generation from the CGP and consumption by the
CaptiveUser shall be based on the reading of the meter
installed for recordingthe generation at the injection side
(“generation meter”).
b. For CaptiveUser:
The
electricity
sourced
at
the
consumption
side
(“consumption meter”).
2
CGP and its
CaptiveUser are
located within
the State (but
not co-located),
a. For CGP:
Based on actual injection from the CGP as per the data
provided by the SLDC
b. For CaptiveUser:
The corresponding consumption or the actual consumption
whichever is lower, based on the meter reading at the User
Jharkhand Gazette (Extraordinary), Thursday 9th May, 2024
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Sl.
no.
Location
Criteria
interface with the grid as provided by the SLDC and the
distribution licensee in whose area the User are located.
3
The CGP and its
CaptiveUser
is/are located in
different States
a. For CGP:
Based on actual injection from the CGP as per the data
provided by the respective RLDC/SLDC.
b. For CaptiveUser:
The corresponding consumption or the actual consumption
whichever is lower, based on the meter reading at the User
interface with the grid as provided by the concerned SLDC
of the recipient state(s) and the distribution licensee in
whose area the User are located.
Provided that the consumption of electricity by the CaptiveUser may be either
directly or through Energy Storage System;
Provided that the consumption by a subsidiary company as defined in clause
(87) of section 2 of the Companies Act, 2013 (18 of 2023) or the holding
company as defined in clause (46) of section 2 of the Companies Act, 2013 (18
of 2023), of a company which is a CaptiveUser, shall also be admissible as
Captive consumption by the CaptiveUser.
Provided that the Captive status of such generating plants, where Captive
generating plant and its CaptiveUserare located in more than one state, shall
be verified by the Central Electricity Authority as per the procedure issued by
the Authority with the approval of the Central Government.
5.8. Verification of equity shareholding criteria
a. Verification criteria for various types of CGP shall be as follows: -
Sl.
no.
Type of
CaptiveUser
Criteria
Support Document
1
Single CaptiveUser
The User shall hold not less than
26% of the equity share capital
having voting rights throughout the
year.
A certificate from the
Company Secretary.
2
Partnership firm/
Limited Liability
Partnership (LLP)
Ownership in the Captive plant shall
be not less than 26% proprietary
interest
and
control
over
the
generatingstation or power plant on
annual basis.
A certificate from the
Company Secretary.
3
Association of
Persons (AoP)
The
CaptiveUser
shall
hold
an
aggregate of not less than 26% of
the ownership/paid-up equity share
capital with voting rights throughout
the Year.
A certificate from a
registered Chartered
Accountant.
4
Cooperative Society
Members
of
the
society
shall A certificate from the
Jharkhand Gazette (Extraordinary), Thursday 9th May, 2024
6
Sl.
no.
Type of
CaptiveUser
Criteria
Support Document
collectively satisfy not less than 26%
of the ownership on annual basis.
District Registrar of
Cooperative Society.
5
Special Purpose
Vehicle (SPV)
The
CaptiveUser
shall
hold
an
aggregate of not less than 26% of
the proportionate paid-up equity
share capital with voting rights of
the units identified for Captive use
(i.e. the proportionate of the Equity
of the company related to the
generating unit or units identified as
the CGP) throughout the year
A certificate from a
registered Chartered
Accountant.
Provided that if the Captive generating plant is set up by an affiliate company,
not less than fifty-one per cent of the ownership, is held by the CaptiveUser, in
that affiliate company;
6. Consequence of failure to meet CaptiveUserstatus
6.1. The CaptiveUser shall be required to submit the security deposit by 15th of
July of every year in the form of unconditional and irrevocable Bank
Guarantee (BG) for an amount equivalent to 51% Captive consumption for
one-year period, to the concerned distribution licensee as a payment security
mechanism towards estimated cross subsidy surcharge, additional surcharge
and any other charge as may be decided from time to time by the
Commission.
6.2. The Bank Guarantee (BG) shall have a term of 12 months and will have to be
renewed/revised annually of an amount equivalent to 51% of its estimated
Captive consumption by 31st of May or after completion of Captive verification
by the Commission, whichever comes first.
6.3. In case the Bank guarantee is not renewed/revised by 31st of May before its
expiry date of 15th of July, the Bank guarantee shall be invoked by the
Distribution licensee towards its cross-subsidy surcharge and additional
surcharge or any other applicable Open access charges.
6.4. In case Bank guarantee is not renewed/revised by 31st of May before its
expiry date of 15th of July the Bank guarantee shall be forfeited by the
Distribution licensee towards its cross-subsidy surcharge and additional
surcharge or any other applicable Open access charges.
Provided that there shall be no exemption from Cross Subsidy Surcharge and
Additional Surcharge on the electricity consumed by other consumers who are
receiving power from this Captive generating plant and are not the Captive
consumers.
6.5. If the CGP or CaptiveUser fails to meet the criteria of ownership and/or
consumption, specified in Rule 3 of Electricity Rule 2005 and in these
Regulations, as the case may be as amended from time to time, by the end of
the financial year, such CGP or CaptiveUser shall lose its Captive status for
Jharkhand Gazette (Extraordinary), Thursday 9th May, 2024
7
that year leading to imposition of Cross Subsidy Surcharge and Additional
Surcharge along with other charges as applicable on open access consumers
which shall be payable to the concerned distribution licensee(s).
7.
Inherent powers of the Commission
7.1. Nothing in these Regulations shall be deemed to limit or otherwise affect the
power of the Commission to make such orders as may be necessary to meet
the ends of justice.
7.2. Nothing in these Regulations shall bar the Commission from adopting in
conformity with the provisions of the Act, a procedure which is at variance
with any of the provisions of these Regulations, if the Commission, in view of
the special circumstances of a matter or a class of matters, deems it just or
expedient for deciding such matter or class of matters.
7.3. Nothing in these Regulations shall, expressly or implied, bar the Commission
from dealing with any matter or exercising any power under the Act for which
no Regulations have been framed, and the Commission may deal with such
matters, powers, and functions in a manner, as it considers just and
appropriate.
8.
Power to Relax
8.1. The Commission may by general or specific order, for reasons to be recorded
in writing, and after giving an opportunity of hearing to the parties likely to be
affected, may relax any of the provisions of these Regulations on its own
motion or on an application made before it by the affected party.
9.
Power to Remove Difficulties
9.1. If any difficulty arises in giving effect to the provisions of these Regulations,
the Commission may, by general or specific order, give directions, not
inconsistent with the provisions of the Act, as may appear to be necessary or
expedient for the purpose of removing difficulties.
10. Power to amend
10.1. The Commission may from time to time add, vary, alter, modify or amend any
provisions of these Regulations after following the necessary procedures.
11. Interpretation
11.1. The decision of the Commission regarding the interpretation of these
Regulations shall be final and binding.
By Order of the Commission.
R.P.Nayak,
Secretary
Jharkhand Gazette (Extraordinary), Thursday 9th May, 2024
8
FORMAT
[To be submitted by the Captive Generating Plant]
CERTIFICATE ON “OWNERSHIP” AS PER RULE 3 OF ELECTRICITY RULES,
2005
We hereby certify that the Equity Share Capital with voting rights of _________ (Name
of
company)
having
constitution
as
Single
CaptiveUser/
Partnership
firm/LLP/AoP/SPV having its registered office at satisfy the requirements under Rule
3 of the Electricity Rules 2005 for qualifying as a Captive Generation Plant with
reference to “Ownership” criteria. The detailed breakup of the issued, subscribed and
paid-up equity share capital, including percentage of holding in Equity Share Capital
with voting rights of the Company held by CaptiveUser vis-a-vis otherUser have been
tabulated below.
Equity Share Capital CaptiveUser/others with Voting Rights as on…….
S.No.
Class of
Share
holderCaptiveUser/
others
Class
of
Equity
shares
No. of
Equity
Shares
Value
per
Equity
Share
Amount
of Equity
Share
Capital
Percentage
holding in
Equity Share
capital
No. of
Voting
rights
Percentage
holding in
Voting
Rights
Percentage
holding in
Equity
Share
Capital
with voting
rights
1.
2.
-
N.
Total
Please find attached the following:
Annexure
1. Copy of the latest audited balance sheet of the Captive Use
A) Copy of the Share Certificate for the above.
B) Copy of the SH-4 Certificate.
Signature of Chartered Accountant/ Company Secretary:
Name in Block letters:
Membership No.:
Name of firm:
Firm Registration number:
Place:
Date:
Jharkhand Gazette (Extraordinary), Thursday 9th May, 2024
9
To be submitted by the Generator which is a Limited Liability Partnership Firm]
CERTIFICATE ON “OWNERSHIP” AS PER RULE 3 OF ELECTRICITY RULES,
2005 FOR WHEELING UNDER CAPTIVE CATEGORY
We hereby certify that M/s. ________________, a Partnership Firm having its
Registered Office at ___________ satisfy the requirements under Rule 3 of Electricity
Rules, 2005 for qualifying as a Captive Generation Plant with reference to
“Ownership” criteria as per the Partnership Deed dated ______________ with reference
to HT.SC No._________________ of ______________ E.D.C. We confirm that the Captive
consumers are holding proprietary interests and control over the Captive Generation
Plant.
The detailed breakup of the ownership of each partner in the Partnership Firm has
been tabulated below in Table A. Further, specific breakup of the proprietary interest
and control in relation to Captive Generation Plant held by CaptiveUser vis-à-vis
other User has been tabulated below in Table B.
TABLE A
Ownerships of the Captive Generation Plant of the Partnership Firm as on
………...
Sl no
Name
of the
partner
Capital
contribution
% of capital
contribution
Profit
sharing
Ratio
Whether
Control
Proportionate
to Capital
Contribution?
Remarks
on
control
pattern*
1.
2.
-
N.
Total
* Please provide remarks in the relevant column whether control is proportionate to
the capital contribution. Further annex the Partnership Deed of the verification of
above details.
TABLE B
Ownership of the Captive Generation Plant of the Partnership Firm as
on…………...
Type of
Owner
HT. SC.
NO.
EDC
% of proprietary
interest in the
Captive Generating
Plant
Whether Control
Proportionate to
Proprietary interest?
Remarks on
control
pattern*
Captive
Other
Total
* Please provide remarks in the relevant column whether control is proportionate to
the capital contribution. Further annex the Partnership Deed of the verification of
above details.
Jharkhand Gazette (Extraordinary), Thursday 9th May, 2024
10
[To be submitted by the CaptiveUser (also owners) of the Limited Liability
Partnership Firm]
AUDITOR’S CERTIFICATE
I hereby certify that CaptiveUser Name, a company incorporated under Companies
Act, 2013 (or earlier Act) and having its registered office at _________________ with HT.
SC. No. ______ at ______________ EDC is a partner with capital contribution of Rs.
______ with controlling interest of __________ percentage in Captive Power Generator
Firm Name which owns a Generating Plant with Capacity __________ under HT. SC.
No. _____________ at _____________ EDC as on date.
Please find attached the following:
Annexure
1. Copy of the latest audited balance sheet of the Captive Use
2. Copy of the latest partnership deed.
Signature:
Name in Block letters:
Membership No.:
Name of firm:
Firm Registration No.:
Name of the Partner:
Membership No.:
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Printed & Published by the Superintendent of Jharkhand Government Press, Doranda, Ranchi.
Jharkhand Gazette (Extraordinary) 258-- 50.