The Ministry of Power (MoP) on January 02, 2026, issued the Draft Electricity (Amendment) Rules, 2026, further to amend the Electricity Rules, 2005.
The following has been stated: -
•Rule 3 shall be substituted, which specifies that,
3. Requirements of Captive Generating Plant, which redefine key terms such as assessment period, captive user, ownership, and SPV, and expand captive use to include storage systems and group entities. A plant qualifies as captive only if captive users hold ≥26% ownership and consume ≥51% of electricity generated from identified captive units during the assessment period. Specifies detailed compliance norms for SPVs, cooperatives, and associations of persons, including proportionate consumption and ownership rules.
Lays down verification, appeal, and surcharge provisions, with penalties and carrying costs applicable if captive status conditions are not met.
Comments or Suggestions thereon may kindly be furnished within 15 days from the date of issue of this letter, i.e., by January 17, 2026.
The detailed notification is given in the document below.
[Notification No.: 23/26/2022-R&R (Part-1)]
