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The Karnataka Electricity Regulatory Commission (KERC) introduced revised draft regulations regarding the verification of captive status for generating plants and consumers within the state. This initiative, detailed in a notification dated March 22, 2024, seeks to streamline and clarify the criteria necessary for entities to be recognized as captive-generating plants or consumers, offering a clearer path for the adoption of captive-generation facilities.
Under the Electricity Act of 2003, a “captive generating plant” is defined based on its primary purpose of serving the electricity needs of its owner(s), with specific criteria regarding shareholding and consumption patterns. These criteria ensure that a significant portion of the electricity generated is used by those who have a substantial stake in the plant. This move is part of a broader effort to encourage private investment in the power sector, allowing businesses and collectives to generate their electricity, potentially reducing reliance on state-provided power, and promoting renewable energy sources.
The revised regulations emphasize the need for a captive generating plant (CGP) to meet certain conditions under the Electricity Act of 2003 and the Electricity Rules of 2005 to qualify for benefits. This includes mandates on shareholding patterns and the proportion of electricity consumption, which are designed to ensure that the majority of the generated power is indeed used by the plant’s owners. The document specifies that these criteria are to be verified annually, based on the shareholding pattern existing during the financial year and the consumption details as submitted by the generator/consumer(s) and the distribution licensees.
Notably, the commission has observed confusion around the determination of captive status when a consumer joins or leaves a CGP during the middle of a financial year. To address this, it provided guidelines on how these situations should be handled, ensuring clarity and fairness in the application of regulations.
The document also clarifies the process for determining the captive status of a generating plant, including the documentation required from intending captive users for verification. This includes detailed definitions of terms such as “captive generating plant,” “captive user,” and “open access,” among others, ensuring all stakeholders have a clear understanding of the legal framework within which they operate.
Moreover, the regulations outline the responsibilities of generating companies, captive users, and distribution licensees in maintaining accurate records and submitting necessary documentation for the verification of captive status. This includes annual submissions of shareholding and consumption details, along with any changes in ownership or shareholding patterns during the financial year.
In case of disputes regarding the captive status or payment of surcharges, the regulations provide a mechanism for resolution, emphasizing the commission’s role in adjudicating such disputes. This ensures a fair and transparent process for all parties involved.
Finally, the document outlines the procedures for metering, monitoring, and reporting the electricity generated and consumed by captive plants. This includes requirements for special energy meters with real-time communication capabilities, ensuring accurate and timely data collection.
The introduction of these revised regulations represents a significant step forward in clarifying and enforcing the criteria for captive-generating plants in Karnataka. By providing detailed guidelines and a clear regulatory framework, KERC aims to encourage the development of captive power generation, support the transition to renewable energy sources, and ultimately contribute to a more sustainable and self-reliant energy sector in the state. |
