Open Access under the Electricity Act, 2003
Open Access means the non-discriminatory use of transmission and distribution systems by:
- Generating companies
- Licensees
- Consumers
to transport electricity from one point to another.
Regulatory briefing/ Captive power · open access · India
Electricity (Amendment) Rules, 2026
Captive Power & Open Access Reforms
Understanding the New Captive Framework under the Electricity Act, 2003
Transcribed from the source deck without paraphrase. Regulatory text changes: confirm applicability, jurisdiction and current status against the primary source before relying on it.
Special Status of Captive Generating Plants
- Statutory right to carry electricity to the place of captive consumption, subject to transmission availability — Section 9(2)
- Disputes on transmission availability are decided by the Appropriate Commission
Existing Captive Requirements
A plant qualifies as Captive if:
- 26% ownership
- 51% captive consumption
under Rule 3 of the Electricity Rules
Why the Amendment?
- Improve industrial competitiveness
- Promote captive & renewable electricity
- Reduce ambiguity and litigation over proportional consumption
- Align rules with modern group structures
Key Reforms
- Group companies treated as one captive user
- Energy Storage System recognised
- Unit-wise captive qualification for SPVs
- 26% ownership + 51% consumption retained
AoP Framework
- Collective compliance retained
- Individual benefit capped at proportionate entitlement
- Excess still counts toward plant qualification
- 26% owner exempt from proportionate limit
Verification
- State Nodal Agency (intra-state)
- NLDC (inter-state)
- Appeal mechanism introduced — Grievance Redressal Committee
- Annual verification
CSS & Additional Surcharge
- No CSS/AS pending verification with declaration
- Failure: CSS + AS + carrying cost payable
Implementation
- Most provisions effective immediately
- Verification/AoP provisions from 1 April 2026
Business Impact
- Simpler compliance
- Supports renewable captive projects
- Greater certainty
- Reduced disputes
What it means for you/ site by site
Thresholds are
a design input.
Group captive qualification, the proportionate entitlement cap and annual verification all shape how a renewable portfolio should be structured — before any capacity is contracted.