Home India Ministry of Power the Electricity (Amendment) Rules, 2023...
Date: 30-Jun-2023 Category: Extra Ordinary State: Union Government Country: India

the Electricity (Amendment) Rules, 2023

Issued by Ministry of Power · Not Applicable

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Executive Summary & Key Takeaways

What it means

  • The Electricity (Amendment) Rules, 2023 amends the Electricity Rules, 2005. These amendments pertain to captive generating plants, licenses for electricity distribution, and tariff calculations for power supply from central pools.

Key Changes

  • Captive Generating Plant Ownership: The minimum ownership stake by a captive user in a captive generating plant remains unchanged at 26%. However, if the captive generating plant is established by an affiliate company, the captive user must hold at least 51% ownership in that affiliate company.
  • Definition of Captive User: Clarifies that a captive user is the end user of electricity generated by a Captive Generating Plant, and captive use includes consumption either directly or through an Energy Storage System. It also clarifies that consumption by a subsidiary company of an existing captive user is considered captive consumption.
  • Licensing Period: Specifies that entities granted licenses under Section 14 of the Electricity Act, 2003, will have license periods as per the terms and conditions set by the Appropriate Commission. Deemed licensees under the first, second, and fifth provisos of Section 14 will have a license period of 25 years from the Act's commencement. Licenses are considered renewed unless revoked, with renewals up to 25 years or a lesser period if requested. These rules do not apply to transmission developers selected through tariff-based bidding under Section 63 of the Act.
  • Tariff Calculation: Modifies the tariff calculation method for power supplied from central pools (solar, wind, etc.) to end procurers. The tariff for a specific month is now based on the energy scheduled to the end procurer by the intermediary procurer from the central pool, and the actual amount payable for the scheduled energy.
  • Other Amendments: Replaces 'implementing agency' with 'intermediary procurer' and 'provide public' with 'publish' in Rule 19(1). Replaces 'renewable energy generators' with 'end procurers' in Rule 19(2). Updates references and formulas in Schedule II related to the Fuel and Power Purchase Adjustment Surcharge calculation.

Impact Analysis

Captive Power Plants

  • Action Items: Review existing ownership structures of captive generating plants and their affiliate companies to ensure compliance with the revised ownership criteria. Restructure ownership if necessary.

Electricity Distribution Companies

  • Action Items: Review existing license terms and conditions. Deemed licensees should note the 25-year license period from the Act's commencement. Prepare for license renewal well in advance, considering the option for a shorter renewal period if needed.

Power Procurers and Consumers

  • Action Items: Understand the revised tariff calculation methodology based on scheduled energy. Adjust financial models and power procurement strategies accordingly. Review power purchase agreements to align with the new regulations.

Transmission Developers

  • Action Items: Transmission developers should note that their licensing terms are governed by Section 63 and are excluded from the new licensing period rules.

Key Entities Referenced

Electricity Act, 2003: The principal legislation governing the electricity sector in India. Section 176 provides the Central Government with the power to make rules to carry out the purposes of the Act. Sections 14 and 63 are specifically referenced regarding licensing. Electricity Rules, 2005: The original rules framed under the Electricity Act, 2003, which are being amended by the Electricity (Amendment) Rules, 2023. Appropriate Commission: Refers to the regulatory body responsible for granting and regulating electricity licenses. Captive Generating Plant: A power plant set up to generate electricity for self-use, with specific ownership requirements as defined in the rules. Captive User: The end user of electricity generated in a Captive Generating Plant. Intermediary Procurer: An entity that procures power from central pools and supplies it to end procurers. End Procurer: The final entity that purchases electricity for consumption. Companies Act, 2013: The law governing companies in India, specifically Section 2(87) which defines a 'subsidiary company'.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 ससीी..जजीी..--डडीी..एएलल..--अअ..--0011007722002233--224466992255 xxxGIDHxxx CCGG--DDLL--EE--0011007722002233--224466992255 xxxGIDExxx असाधारण EXTRAORDINARY भाग II—खण् ड 3—उप-खण्ड (i) PART II—Section 3—Sub-section (i) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 377] नई दिल्ली, िुक्रिार, िनू 30, 2023/आषाढ़ 9, 1945 No. 377] NEW DELHI, FRIDAY, JUNE 30, 2023/ASHADHA 9, 1945 जिद्यतु मत्रं ालय अजधसचू ना नई दिल्ली 30 िून, 2023 सा.का.जन. 466 (अ):— केन्द्रीय सरकार, जिद्युत अजधजनयम, 2003 (2003 का 36) की धारा 176 द्वारा प्रित्त िजियों का प्रयोग करते हुए, जिद्युत जनयम, 2005 का और संिोधन करने के जलए जनम्न जलजखत जनयम ननाती ै, अर्ाात्: 1. संजिप्त नाम और प्रारंभ- (1) इन जनयमों का संजिप्त नाम जिद्युत (संिोधन) जनयम, 2023 ै। (2) ये रािपत्र में उनके प्रकािन की तारीख को प्रिृत्त ैोंगे। 2. जिद्युत जनयम, 2005 (जिसे इसमें इसके पश्चात उि जनयम कैा गया ै) केजनयम 3 म,ें - (क) खंड (क) म,ें उप-खंड (i) के स्ट् र्ान पर, जनम्न जलजखत उप-खंड रखा िाएगा, अर्ाात:् - "(i)" स्ट्िाजमत्ि का छब्नीस प्रजतित से अन्द्यनू क जप्िि प्रयोिा द्वारा धाररत ै: परंत ु यदि क जप्िि उत्प ािन सयं त्रं दकसी संनध क कंपनी द्वारा स्ट्र्ाजपत दकया गया ै, तो क जप्िि प्रयोक्त ा द्वारा उस संनध क कंपनी म ें स्ट्िाजमत्ि का इक्यािन प्रजतित से अन्द्यून धाररत ैो; और"; (ख) उप-जनयम (2) के पश्चात आने िाले स्ट्पष्टीकरण म,ें खंड (ख) के स्ट् र्ान पर, जनम्नजलजखत रखा िाएगा, अर्ाात:् - 4128 GI/2023 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] (ख) "क जप्िि प्रयोिा" से दकसी क जप्िि उत्पािक संयंत्र में उत्पादित जिद्युत का अंजतम प्रयोिा अजभप्रेत ैोगा और "क जप्िि उपयोग" िब्ि का तिनुसार अर् ालगाया िाएगााः परंत ु क जप्िि प्रयोिा द्वारा जिद्युत का उपभोग या तो प्रत्यि ूपप से या ऊिा ा भंडारण प्रणाली के माध्यम से ैो सकेगा: परंत ु यै और दक दकसी कंपनी, िो एक जिद्यमान क जप्िि प्रयोिा ै, की सैायक कंपनी, कंपनी अजधजनयम, 2013 (2013 का 18) की धारा 2 के खंड (87) में यर्ा पररभाजषत, द्वारा उपभोग भीक जप्िि प्रयोक्त ा द्वारा क जप्िि उपभोग के ूपप में स्ट्िीकाया ैोगा।” 3. उि जनयमों म,ें जनयम 4 के पश्चात, जनम्नजलजखत जनयम अंताःस्ट्र्ाजपत दकये िायगें ,े अर्ाात:् - (4क) िैां दकसी इकाई को अजधजनयम की धारा 14 के अधीन अनज्ञु जप्त प्रिान की गई ै, तो अनुज्ञजप्त की अिजध समुजचत आयोग द्वारा प्रिान की गई अनुज्ञजप्त के जननंधन और ितों के अनुसार ैोगी; (4ख) िैां दकसी इकाई को अजधजनयम की धारा 14 के पैल,े िसू रे और पांचिें परंतुक के अंतगता अनज्ञु जप्तधारी माना िाता ै, तो अनुज्ञजप्त की अिजध, अजधजनयम के लागू ैोन े की तारीख स ेपच्चीस िषा ैोगी; (4ग) अजधजनयम की धारा 14 के अधीनसमुजचत आयोग द्वारा प्रिान की गई अनज्ञु जप्त और उि धारा 14 के पैल,े िसू रे और पांचि ें परंतुक के अधीनसमझी गई अनुज्ञजप्त को, िन तक इसे रद्द नैीं दकया िाता, निीनीकृत माना िाएगा: परंतु ऐसा निीनीकरण, एक नार में पच्चीस िष ा की अिजध के जलए या अनुज्ञजप्तधारी द्वारा अनुरोध दकए िाने पर उससे कम अिजध के जलए ैोगा: परंत ु यै और दक िैां समुजचत आयोग न े इन जनयमों की अजधसूचना से पैले अनुज्ञजप्त का दकसी जिजिष्ट अिजध के जलए निीनीकरण दकया ैो, तो इन जनयमों के अधीन अनुज्ञजप्त को उस जिजिष्ट अिजध के जलए निीनीकृत माना िाएगा। परंत ु यै और दक यै जनयम अजधजनयम की धारा 63 के अधीन, ि ररफ आधाररत नोली के माध्यम स े चयजनत, पारेषण जिकासकताओंा को प्रिान की गई अनज्ञु जप्त पर लाग ूनैीं ैोगा। 4. उक्त जनयम के, जनयम 19 म ें- (क) उप-जनयम (1) म,ें - (i) खंड (ग) के परंतुक म,ें "कायाान्द्ियन अजभकरण" िब्िों के स्ट्र्ान पर, "मध्यस्ट्र् खरीििार" िब्िरख े िाएगं ;े और (ii) खंड (ड) म,ें 'सािािजनक करेगी' िब्िों के स्ट्र्ान पर, "प्रकाजित करेगी" िब्ि रखे िाएगं ;े (ख) उप-जनयम (2) म,ें "निीकरणीय ऊिाा उत् पािकों" िब् िों के स्ट्र्ान पर, "अंजतम खरीििारों" िब्ि रख ेिाएंगे। 5. उक्त जनयम म,ें (क) अनुसूची-1म,ें - (i) "दकसी जििेष माै के जलए ि ररफ की संगणना पलू से अंजतम खरीििार को आपूर्ता की गई िास्ट् तजिक ऊिाा के आधार पर की िाती ै , ि से दक मध्यस्ट्र् खरीििार द्वारा सौर ऊिाा केंरीय पलू , पिन ऊिा ा केंरीय पूल और जिद्युत की ऐसी आपूर्ता के जलए िेय भगु तान योग् य िास्ट्तजिक राजि ि सा दक नीचे ििााया गया ै: "[भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 3 िब्िों के स्ट् र्ान पर,"दकसी जिजिष्ट माै के जलए ि ररफ की संगणना मध्यस्ट्र् खरीििार द्वारा केंरीय पूल (अर्ाता ् सौर जिद्युत केंरीय पलू , पिन जिद्युत केंरीय पूल आदि) से अंजतम खरीििार को जनधााररत की गई ऊिाा के आधार पर की िाती ैऔ र ऐसी जनधााररत ऊिाा के जलए सिं ेय की िाने िाली िास्ट्तजिक रकम नीच े दिए गए िष्टृ ांतानुसार ैोगी:" िब्ि रखे िाएंग;े (ii) सारणी 1 और सारणी 2 म,ें स्ट्तंभ (5) म,ें "माै के िौरान आपूर्त ा की गई िेड्यलू ऊिाा" िब् िों के स्ट्र्ान पर, "मास के िौरान अनुसूजचत ऊिाा" िब्ि रखे िाएगं ;े (ख) अनुसूची-2 के,- (i) प रा 1 के, उप-प रा(7) की, मि (ii) म,ें "6 (i)" अंक कोष्ठकों, एिं अिर के स्ट्र् ान पर, "उप-प रा(7) की मि (i)" िब्ि कोष्ठ क, अिर और अंक रख ेिाएंग;े (ii) प रा3 के िीषाक को, प्रजतस्ट्र्ाजपत दकया िाएगा, अर्ाात्:- “2. ईंधन और जिद्युत क्रय समायोिन अजधभार की सगं णना ैते ु सूत्र”; (iii) सूत्र म,ें "सी िृजध किील औसत जिद्युत क्रय लागत" अिर और िब्िों के स्ट्र्ान पर "सी िृजध किील औसत जिद्युत क्रय लागत (ईंधन लागत में पररितान सजैत)" अिर और िब्ि रखे िाएंगे। [फा. स.ं 23/18/2022-आरएडं आर] पीयूष ससंै, संयुक् त सजचि मूल जनयम िषा 2005 में भारत के रािपत्र की अजधसूचना संख् या सा.का.जन. 379 (अ),तारीख 8 िून, 2005 द्वारा प्रकाजित दकए गए र् े और तत्पश्चात अजधसूचना संख् या 667 (अ) तारीख 26 अक् तूनर, 2006 तर्ा अजधसूचना संख् या 817 (अ),तारीख 31 दिसंनर, 2020 द्वारा संिोजधत दकए गए र्े। 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 title and commencement.-(1) These rules may be called the Electricity (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 (hereinafter referred to as the 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 ownership 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 Plantand the term “captive use” shall be construed accordingly:4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] Provided that the consumption of electricity by the captive user may beeither directly or through Energy Storage 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 consumption by the 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 conditions 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 coming into force of the Act; (4C) The licence granted by the Appropriate Commission under section 14 of the Actand the deemed licence under first, second and fifth proviso to said section 14 shall be deemed to be renewed unless the same is revoked: Provided that such 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 of 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 63of the Act. 4. In the said rules, in Rule 19.- (A) in sub-rule (1),- (i) in proviso to clause (c), for the word “implementing agency”, the words “intermediary procurer”, shall be substituted; and (ii) in clause (m), for the word ‘provide public’, the words“publish” shall be substituted; (B) in sub-rule (2), for the words “renewable energy generators”, the words “end procurers” shall be substituted. 5. In the said Rules, (A) in Schedule-I,- (i) for the words “Tariff for a particular month is 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 illustrated below:” shall be substituted; (ii) in Table 1 and 2, in column (5), for the words “Schedule Energy supplied during the Month”, the words “Energy Scheduled during the month” shall be substituted; (B) in Schedule II,- (i) in paragraph 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. Formula for Computation 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[भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 5 (iv) in Formula, for the letter and words “C is incremental Average Power Purchase 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 667 (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-110064 and Published by the Controller of Publications, Delhi-110054.

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