Commission’s order on Group Captive Power Scheme

<p> </p><p><strong>Commission’s order on Group Captive Power Scheme:</strong></p><p> </p><p><strong>1) Authority of Verification of status of CGP:</strong></p><p>a. TANGEDCO will verify the status of CGP and can disqualify the captive status and levy a   claim on the captive user.</p><p>b.      In case, captive user/ CGPs offer explanation/ clarification and licensee finds the explanation satisfactory, the licensee will withdraw the claims made.</p><p>c.       If licensee is not satisfied with the explanation then the dispute can be taken to TNERC.</p><p>d.  In such cases, till the final orders are passed by the commission Distribution Licensee is     refrained from taking action.</p><p><strong>2) Verification Implementation.</strong></p><p>a.       Verification process to start from FY 2014-15 to 2016-17.</p><p><strong>3) Time limit for submission of documents for verification/collection of dues from captive users on failure to satisfy captive status:</strong></p><p>a. Documents should be submitted by Generator/Consumer within 4 weeks from the date of receipt of notice form Distribution Licensee for the period of FY2014-15  to 2016-17.</p><p>b. Distribution Licensee will verify the status within 3 months for the above mentioned period. For the year staring from 2020 all verification should be done and fulfilment of captive status have to be informed by the Distribution Licensee by 30th JUN of each year.</p><p>c. Failure to produce the documents by captive user/CGPs shall entail the Licensee to proceed with the available documents.</p><p>d. Within 15 days from date of receipt of intimation of disqualification of captive status from the licensee the captive user shall inform the concurrence/objection to the disqualification and the dues to be remitted.</p><p>e. On acceptance by the captive users to disqualification as well as to the dues to be remitted a fresh demand will be raised by the licensee within 15days of receipt of concurrence.</p><p><strong>4) Documents to be provided for verification prior to the approval for captive wheeling:</strong></p><p>a. Generators/captive users should submit the documents as proof of ownership to the Licensee at the beginning of FY, at the end of FY and at the time change in ownership/shareholding.</p><p>b.  Captive Generation Plant and captive user should furnish an undertaking along with the documents in support of ownership structure/ shareholding pattern prior to seeking wheeling approval.</p><p>The documents of proof of ownership shall be furnished based on no. of captive users preceding the date from which wheeling approval is sought which is as follows,</p><p>                1. 30 days- when no.of captive users is less than or equal to 50.</p><p>                2. 45 days- when more than 50 users.</p><p>c. The distribution Licensee shall intimate the satisfactory of verification of documents within in a time frame as follows</p><figure class="table"><table><tbody><tr><td>No.of captive users</td><td>Time Frame</td></tr><tr><td>1-15</td><td>10 working days</td></tr><tr><td>16-50</td><td>15 working days</td></tr><tr><td>51  and above</td><td> 30 working days</td></tr></tbody></table></figure><p>d. For any change in shareholding of exiting captive users , the proof shall be submitted within 10 days of change.</p><p>f. The Distribution Licensee may also cross verify with the data available in Public domain of ROC, Register firms etc.,</p><p><strong>5). Documents to be submitted and time frame:</strong></p><p>a. Certificates, amendment to MoU/AoA, copies of resolution in authorized signatories to be submitted within 7 days.</p><p>b. For Company/AoP/SPV/Co-operative Society /LLP  the ownership documents can be certified by CA who signs annual financial statement/ practicing Company Secretary who signs the  annual return.</p><p>c. For partnership firm/LLP ownership shall be certified by CA who signs annual financial statement of the firm /Tax Auditor.</p><p>d. Board resolution/nomination/agreement of authorized signatory is to be provided while seeking approval as well as at the end of the FY.</p><p>e. Intimation of change in authorized signatory within a time frame is not required.</p><p>f. Form MGT 7/ extract of annual financial statement /return may be submitted within a month of filling to the Distribution Licensee.</p><p><strong>6. Proportionality Test:</strong></p><p>a. SPV or AoPs are subjected to proportionality test. Captive user should consume in proportion to shareholding within a variation not exceeding 10%. Proportionality test shall be done for 51% of aggregate generation and not for consumption beyond the 51% by the captive users. in case if Hon’ble Supreme court decides to apply  proportionality test on total energy generated determined on annual basis, the same would be applied from the date of order of the court.</p><p>b.  Non SPVs are exempted from proportionality test </p><p><strong>7. Verification of ownership and consumption in a FY:</strong></p><p>a. The verification will be done for each corresponding change by considering the proportionate generation for the corresponding change and energy consumed by the users.</p><p> b. This procedure will be implemented from 01/04/2020.</p><p><strong>8. Weighted average of shareholding:</strong></p><p>Weighted avg of shareholding for verification of 26% will be considered subject to condition     that change in extent of shareholding of captive users to be intimated within a time frame of 10 days from days of such change.</p><p><strong>9. Aggregate generation will be considered i.e only the auxiliary consumption alone will be deducted from the gross generation. </strong></p><p><strong>10. In case of wind energy, if CGP has multiple wind mills and have separate Energy wheeling agreements, aggregate energy of all wind mills will be considered irrespective of separate wheeling agreement provided the ownership structure/ shareholding is same in each agreement.</strong></p><p><strong>11. In case of single  captive user in a captive plant due to any breakdown the failure of the captive user to consume 51% of the aggregate generation will attract cross subsidiary for the consumption made by the captive user i.e the CGP does not satisfy the captive status.</strong></p><p><strong>12. In a Captive generation plant with one or more captive users where the minimum 26% shareholding and 51% shareholding  is met but, one  or more captive users who does not satisfy the proportionality test will lose the captive status and other users who  fulfil the proportionality test will  retain the captive status.</strong></p><p> </p><p>TNERC Circular On <a href=""><strong>Commission’s order on Group Captive Power Scheme</strong></a></p>