The Rajasthan Electricity Regulatory Commission (RERC) has moved to align the state’s captive power framework with the Central Government’s newly notified Electricity (Amendment) Rules, 2026, setting the stage for a formal verification mechanism for captive users and power projects.

The order follows the Central Government’s overhaul of Rule 3 of the Electricity Rules, 2005, which introduces revised definitions around captive users and ownership structures, and mandates a state-level system to verify captive status.

The amended rules will take effect from April 1, 2026.

Under the amended rules, the definition of captive user has been expanded to include consumption through energy storage systems. The concept of ownership has also been broadened to include group entities.

In addition, special-purpose vehicles will be treated as an association of persons, and provisions have been introduced regarding proportionate consumption requirements for individual captive users within such entities.

The rules provide for a verification mechanism through a state-designated nodal agency. The state government must designate an agency to verify the captive status of intra-state power projects and to prescribe the procedure for verification, including formats for declarations by captive users seeking interim protection from cross-subsidy surcharge.

The state government must also constitute a grievance redressal committee to hear appeals against the nodal agency’s decisions.

Verification of the captive status of power projects and users located in the state will be carried out by the designated nodal agency in accordance with the prescribed procedure. The grievance redressal committee will function in line with the provisions of the amended rules.

The Commission also noted that Rajasthan Renewable Energy Corporation had earlier issued a standard operating procedure for captive and third-party sale from renewable energy projects.

Subscribe to Mercom’s real-time Regulatory Updates to ensure you don’t miss any critical updates from the renewable industry.