The Jharkhand State Electricity Regulatory Commission (JSERC) has taken a significant step towards enhancing transparency and accountability in the state's electricity sector by introducing the Jharkhand State Electricity Regulatory Commission (Verification of Captive Generating Plants and Captive Consumers) Regulations, 2024.

These regulations aim to establish a clear methodology for verifying the status of captive generating projects and captive consumers who import power from their respective captive generators, whether within the state or outside. Additionally, the regulations outline the consequences if these entities fail to meet the specified conditions.

Under the new regulations, JSERC will conduct annual verifications to ensure compliance. This process involves analyzing data provided by captive power projects and consumers, with support from relevant entities such as the Regional Load Dispatch Center (RLDC), State Load Dispatch Center (SLDC), and power distribution companies (DISCOMs).

Captive power projects and their consumers are required to submit sworn statements to JSERC by May 15 each year, detailing their electricity generation and usage for the previous year, along with ownership information. Failure to provide the necessary data by the deadlines may result in decisions being made based on available information.

JSERC will inform captive power projects, consumers, and distribution companies of their status by July 15 annually.

The regulations also define criteria for assessing consumption, based on the net electricity generated by the power station. Various types of captive consumers must meet specific consumption thresholds, ensuring that the majority of the generated electricity is utilized for captive purposes.

Moreover, the regulations outline shareholding criteria for different types of captive consumers, emphasizing the importance of ownership and control over the generating station or power project.

To ensure compliance and payment security, captive consumers are required to submit a security deposit by July 15 each year in the form of an unconditional bank guarantee. Failure to renew or revise the bank guarantee by the specified deadline may lead to penalties, including forfeiture of the guarantee.

In cases where captive power projects or consumers fail to meet the ownership or consumption criteria, they will lose their captive status for the year, leading to the imposition of additional charges on open access consumers.

These regulations align with efforts to streamline and regulate the captive power sector, promoting fairness and efficiency in electricity distribution across Jharkhand.

Notably, these developments follow the Ministry of Power's draft procedure proposed in November, which aims to verify the captive status of power-generating projects supplying consumers across multiple states, setting standards for ownership and consumption in captive power projects nationwide.