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Core Purpose

Notification of the Electricity (Third Amendment) Rules, 2023, amending Rule 3 of the Electricity Rules, 2005 regarding captive generating plants and captive users, under section 176 of the Electricity Act, 2003.

Detailed Summary

In exercise of the powers conferred by section 176 of the Electricity Act, 2003 (Act 36 of 2003), the Ministry of Power made the Electricity (Third Amendment) Rules, 2023 (G.S.R. 649(E), dated 1st September 2023), effective from the date of publication, amending rule 3 of the Electricity Rules, 2005: in sub-rule (1), clause (a), sub-clause (i), the words “captive user” were substituted with “captive user(s); and” and the accompanying proviso was omitted; the second proviso in the Explanation to clause (b) was substituted to provide that consumption by a subsidiary company (as defined in clause (87) of section 2 of the Companies Act, 2013) or a holding company (as defined in clause (46) of section 2 of the Companies Act, 2013) of a company that is a captive user shall also be admissible as captive consumption by the captive user; and a new sub-rule (3) was inserted requiring the Central Electricity Authority to verify captive status where the captive generating plant and its captive user(s) are located in more than one state, per a procedure approved by the Central Government. The notification states the principal Electricity Rules, 2005 were published vide G.S.R. 379(E) dated 8th June 2005 and last amended vide G.S.R. 558(E) dated 26th July 2023. Issued under F. No. 23/18/2022-R&R and signed by Piyush Singh, Joint Secretary.

Full Text

EXTRAORDINARY PART II —Section 3 —Sub-section ( i) PUBLISHED BY AUTHORITY No. 508] NEW DELH I, FRIDAY, SEPTEMBER 1, 2023/ BHADRA 10, 194 5 CG-DL-E-02092023-248504 MINISTRY OF POWER NOTIFICATION New Delhi, the 1st September, 2023 G.S.R . 649 (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 t o amend the Electricity Rules, 2005, namely: - 1. Short title and commencement .- (1) These rules may be c alled the Electricity (Third Amendment) Rules, 2023. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Electricity Rules, 2005, in rule 3, - (i) in sub -rule(1), in clause (a), in sub -clause(i), for the words “captive user”, the words “captive user(s); and” shall be substituted; (ii) in sub -rule(1), in clause (a), in sub -clause(i), the proviso ther e under shall be omitted; (iii) in Explanation, in clause (b), for second proviso, the following shall be substituted, namely: - “Provided further that the consumption by a subsidiary company as defined in clause (87) of section 2 of the Companies Act, 20 13 (18 of 2013) or the holding company as defined in clause (46) of section 2 of the Companies Act, 2013 (18 of 2013), of a company which is a captive user, shall also be admissible as captive consumption by the captive user.”; (iv) after sub -rule (2), the following sub -rule shall be inserted, namely: - “(3) The captive status of such generating plants, where captive generating plant and its captive user(s) are located in more than one state, shall be verified by the Central Electricity Authority as per the procedure issued by the Authority with the approval of the Central Government.”. [F. No. 23/18/2022 -R&R] PIYUSH SINGH, Jt. Secy . Note: The principal Rules were published 2005 in the Gazette of India, Part -II, Section 3, Sub -section (i) vide number G.S.R 37 9 (E), dated the 8th June, 2005 and was last amended vide G.S.R 558 (E), dated the 26th July, 2023. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi -110064 and Published by the Controller of Publications, Delhi -110054.

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