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ATTENTION – GROUP CAPTIVE USERS - ORDER MP NO:24 OF 2020 – Clause 9.9.5.4 – A Brief

The clause starts with “In the event shareholding of a captive user is considered as zero/nil after a few months into the financial year, then such user cannot be permitted to take benefit of availing captive power thereby seeking exemption from payment of CSS…. “

In simple terms, a captive consumer will be exempted from cross subsidy charges if their shareholding in the company is zero/nil. For example, in a CGP of 10 users and if 3 users stop consuming power in the mid-year, the shares of those users need to be transferred either to the existing consumers or to new consumers. At the end of the financial year (which is Mar 31st), all 10 users will be considered as a CGP. Also, the CGP verification will be done on aggregate 51% consumption by users and aggregate share-holding to not be less than 26%.


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