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Core Purpose

Notification under Section 176 of the Electricity Act, 2003 further amending the Electricity Rules, 2005 (as the Electricity (Amendment) Rules, 2023), revising captive generating plant ownership thresholds, licence duration and renewal provisions, and tariff/surcharge computation formulas.

Detailed Summary

The Ministry of Power, by notification G.S.R. 466(E) dated 30th June 2023, exercising powers under section 176 of the Electricity Act, 2003 (36 of 2003), further amends the Electricity Rules, 2005 as the Electricity (Amendment) Rules, 2023, effective from the date of publication in the Official Gazette; the amendments substitute rule 3(a)(i) to require that not less than twenty-six per cent of ownership of a Captive Generating Plant be held by the captive user (fifty-one per cent where the plant is set up by an affiliate company), redefine 'captive user' and 'captive use' in the Explanation to sub-rule (2) (including consumption via an Energy Storage System and consumption by a subsidiary company as defined in section 2(87) of the Companies Act, 2013), insert new rules 4A, 4B and 4C after rule 4 governing the duration and deemed renewal (for twenty-five years) of licences granted or deemed granted under section 14 of the Act (with an exception for transmission developers selected through tariff-based bidding under section 63), amend rule 19(1) by substituting 'implementing agency' with 'intermediary procurer' and 'provide public' with 'publish', and amend rule 19(2) by substituting 'renewable energy generators' with 'end procurers'; Schedule I is amended to base monthly tariff calculation on energy scheduled (rather than supplied) to the end procurer from the Central Pool, and Schedule II is amended regarding cross-references and the Fuel and Power Purchase Adjustment Surcharge formula, including redefining 'C' as incremental Average Power Purchase Cost including the change of fuel cost; the notification is signed by Piyush Singh, Joint Secretary (F. No. 23/18/2022-R&R), and notes the Principal Rules were published via G.S.R. 379(E) dated 8th June 2005, previously amended by G.S.R. 667(E) dated 26th October 2006 and G.S.R. 817(E) dated 31st December 2020.

Full Text

EXTRAORDINARY PART II —Section 3 —Sub-section ( i) PUBLISHED BY AUTHORITY No. 377] NEW DELHI, FRIDAY, JUNE 30, 2023/ASHADHA 9, 194 5 CG-DL-E-01072023-246925 CG-DL-E-01072023-246925 MINISTRY OF POWER NOTIFICATION New Delhi, the 30th June, 2023 G.S.R. 466(E).—In exercise of the powers conferred by section 176 of the Electricity Act, 2003 (Act 36 of 2003), the Central Government hereby makes the following rules, further to amend the Electricity Rules, 2005, namely: - 1. Short titl e and commencement .-(1) These rules may be called the Electricity (Amendment) Rules, 202 3. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Electricity Rules, 2005 (hereinafter referred to as th e said rules) , in rule 3, - (a) in clause (a), for sub -clause (i),the following sub -clause shall be substituted , namely :- “(i) “not less than twenty -six per cent. of the owners hip is held by the captive user : Provided that if the Captive Generating Plant is set up by an affiliate company, not less than fifty- one per cent. of the ownership, is held by the captive user , in that affiliate company ;and”; (b) in the Explanationoccurring after sub -rule (2) , for clause (b), the following shall be substituted ,namely :- ‘(b) “ captive user” shall mean the end user of the electricity generated in a Captive Generating Plant and the term “captive use” shall be construed accordingly : Provided that the consumption of electricity by the captive user may be either directly or thro ugh Ener gy Stor age System : Provided further that the consumption by a subsidiary company , as defined in clause (87) of section 2 of the Companies Act, 2013 (18 of 2013) , of a company which is an existing captive user shall also be admissible as captive co nsumptio n by th e captive user .’. 3. In the said rules, after rule 4, the following rules shall be inserted, namely: - (4A) Where any entity has been granted licence under section 14 of the Act , the period of the licence shall be in accordance with the terms and con ditions of the licence granted by the Appropriate Commission; (4B) Where an entity is a deemed licensee under the first, second and fifth proviso to section 14 of the Act , the period of the licence shall be twenty five years from the date of the c oming in to force of the Act; (4C) The licence granted by the Appropriate Commission under section 14 of the Act and the deemed licence under first, second and fifth proviso to said s ection 14 shall be deemed to be rene wed unless the same is revoked : Provid ed that su ch renewal,shall be for a period of twenty five years at a time or for a lesser period, if requested by the licensee : Provided further that where the Appropriate Commission has renewed the licence for a particular period before the notification o f these rules, the licence shall be deemed to be renewed for that particular period under these rules. Provided also that this rule shall not apply to the licence granted to transmission developers, selected through tariff based bidding, under section 63 of the Act . 4. In the said r ules, in Rule 19 .- (A) in sub -rule (1), - (i) in proviso to clause (c), for the word “implementing a gency ”, the words “intermediary procure r”, shall be substituted ; and (ii) in clause (m), for the word ‘provide public ’, the words “publish” shall be substituted ; (B) i n sub -rule (2), for the words “renewable energy generators ”, the words “ end p rocurers ” shall be substituted . 5. In the said Rules, (A) in Schedule -I,- (i) for the words “Tariff for a particular month i s calculated based on actual energy supplied to end procurer from the Pool like that solar power central pool, wind power central pool by the intermediary procurer and actual amount to be payable for such supply of power as illustrated below:” the words “Tariff for a particular Month is calculated based on Energy Scheduled to end procurer from the Central Pool (i.e. Solar Power Central Pool, Wind Power Central Pool etc.) by the Intermediary Procurer and the actual amount to be payable for such scheduled energy as illu strated below:” shall be substituted; (ii) in Table 1 an d 2, in column (5), for the words “Sched ule Energy supplied during the M onth” , the words “Energy Scheduled during the m onth” shall be substituted ; (B) in Schedule II, - (i) in paragra ph 1, in sub -paragraph (7), in item (ii), for the figures brackets, and letters "6(i)", the words , brackets, letters and figures“ item (i) of sub -paragraph (7) ” shall be substituted ; (ii) the heading of paragraph 3 shall be substituted , namely: - “2. Formul a for Computa tion of Fuel and Power Purchase Adjustment Surcharge” ; (iii) in paragraph 3, for serial numbers (4), (5) and (6) , the serial numbers (1), (2) and (3) shall be substituted ; and (iv) in Formula , for the letter and words “C is incremental Avera ge Power Purch ase Cost” the letter and words “C is incremental Average Power Purchase Cost (including the change of fuel cost) ” shall be substituted. [F. No. 23/18/2022 -R&R] PIYUSH SINGH , Jt. Secy. The Principal Rules were published 2005 in the Gazette of India vide notification number G.S.R 379 (E), dated the 8th June, 2005 and subsequent amendments vide notification number G.S.R 6 67 (E), dated the 26th October, 2006 and notification number G.S.R. 817 (E) dated 31st December, 2020. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi -1100 64 and Publish ed by the Controller of Publications, Delh i-110054.

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