Section 3 in Rajasthan Electricity Regulatory Commission (tariff for Captive Power Plants) Regulations, 2007
3. Eligibility for CPP.
- A Captive Generating Plant established under section 9 of the Act shall qualify as a CPP for the purpose of these Regulations if,(1)in case of a power plant:-(a)not less than twenty six percent of the ownership is held by the captive user(s), and(b)not less than fifty one percent of the aggregate electricity generated in such plant, determined on an annual basis, is consumed for the captive use:Provided that in case of power plant set up by registered cooperative society, the conditions mentioned under paragraphs at (a) and (b) above shall be satisfied collectively by the members of the co-operative society:Provided further that in case of power plant setup by association of persons, the captive user(s) shall hold not less than twenty six percent of the ownership of the plant in aggregate and such captive user(s) shall consume not less than fifty one percent of the electricity generated, determined on an annual basis, in proportion to their shares in ownership of the power plant.(2)in case of a generating station owned by a company, formed as special purpose vehicle for such generating station herein a unit or units of such generating station identified for captive use, and not the entire generating station, shall satisfy the conditions contained in paragraphs (a) and (b) of sub-clause (1) above, provided that -(a)The electricity required to be consumed by captive users shall be determined with reference to such generating unit or units in aggregate identified for captive use and not with reference to generating station as a whole; and(b)The equity shares to be held by the captive user(s) in the generating station shall not be less than twenty six per cent of the proportionate of the equity of the company related to the generating unit or units identified as the captive generating plant.Illustration. - if a generating station with two units of 50 MW each namely Units A and B, one unit of 50 MW, namely Unit A, may be identified as the Captive Generating Plant. The captive users shall hold not less than thirteen percent of the equity shares in the company (being the twenty six percent proportionate to Unit A of 50 MW) and not less than fifty one percent of the electricity generated in Unit A determined on an annual basis is to be consumed by the captive users.(c)It shall be the obligation of the captive users to ensure that the consumption by the Captive Users at the percentages mentioned in subclauses (1) above is maintained and in case the minimum percentage of captive use is not complied within any year, the entire electricity generated shall be treated as if it is a supply of electricity by a generating company.
