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Govt Streamlines Captive Power Ownership Rules
15 Mar
Summary
- Ownership definition now includes subsidiaries and holding companies.
- Verification of captive status spans the entire financial year.
- New grievance redressal committee to handle disputes.
The government has updated the Electricity Rules, 2026, to clarify regulations surrounding captive power generating plants. These amendments aim to enhance the ease of doing business for industries by resolving interpretational ambiguities.
The definition of ownership has been expanded to encompass subsidiaries and holding companies related to the entity establishing the plant. Verification of captive status will now be conducted for the full financial year. A new provision prevents distribution licensees from charging captive consumers while their status is under verification.
To address disputes arising from verification decisions, a grievance redressal committee will be constituted. State governments can appoint nodal agencies for intra-state captive consumption verification from April 1, 2026, while the National Load Despatch Centre will handle inter-state verification.
These changes align the captive generation regime with modern corporate structures and evolving industrial energy needs, supporting the National Electricity Policy's goal of reliable and cost-effective electricity supply.
