Telangana’s New Procedure For Captive Power Plants Verification Simplified Guidelines

The Telangana Electricity Regulatory Commission has introduced a new procedure for verifying the status of captive power plants and their users in Telangana. This procedure is part of the broader regulations on open access to electricity. It is designed to ensure that captive power plants (CGPs) and their users meet the necessary criteria for being classified as such.

Under these new provisions, the Commission will oversee the verification of CGPs and their users based on information submitted by the local distribution licensees. Every year, before the end of June, the distribution licensees must provide a consolidated report to the Commission. This report should include details about each CGP’s electricity generation, consumption by users, and equity shares.

The verification process involves a few key steps. First, CGPs and their users must apply to the distribution licensee with the required documents. These include details of annual electricity generation, user-wise consumption, and ownership equity. An affidavit must be submitted by the end of June each year. Once the distribution licensee collects this information, the Commission will verify the data and determine the captive status of the plant and its users.

The procedure is meant to ensure that at least 26% of the ownership with voting rights in the CGP is held by the captive users, who must also consume at least 51% of the electricity generated annually. If the CGP is part of a co-operative society, the society’s members collectively must meet these criteria. In cases where the CGP is part of a special purpose vehicle (SPV) with multiple generating units, the users must hold at least 26% of the equity and consume 51% of the generated electricity.

Ownership and consumption are verified annually. The distribution licensee will assist in this verification by providing necessary details and helping address any queries. If any discrepancies or failures are found, the status of the CGP or its users might be adjusted accordingly.

For the verification of ownership, the CGP must provide various documents such as certificates from chartered accountants, copies of the company’s registration and amendments, and resolutions from the board. If the CGP is a co-operative society or an association of persons, similar documents must be provided, including certificates from the relevant authorities and details of membership contributions.

In terms of consumption, the CGP must ensure that at least 51% of the net electricity generated is consumed by the users. This includes accounting for technical losses in the electrical network and energy storage systems. The procedure outlines how to calculate and verify these losses based on published data and normative figures.

If the CGP or its users fail to meet the required criteria, they will lose their captive status. However, they will have the chance to explain and rectify any issues before the final decision is made. If a shareholder or member defaults on meeting the consumption criteria, the remaining users who comply with the ownership and consumption requirements will retain the captive status.

To support accurate monitoring, each CGP unit must be equipped with a real-time communication meter that connects to the regional or state load dispatch centers. This ensures transparency and accurate tracking of electricity generation and consumption.

The Telangana Electricity Regulatory Commission’s new procedure aims to ensure compliance with captive power plant regulations through a detailed verification process involving documentation, reporting, and annual checks.