A user's share of our captive plant changed during the year. Which shareholding does the rule use?
For a plant set up by an association of persons, Rule 3(2)(d)(iv) sets each user's proportionate consumption on its weighted average shareholding during the financial year. Separately, the note lets a plant's first or last year of ownership be verified for only the part of the year it applies to. That is not about a user's share changing.
What the source says
- Rule 3(2)(d)(iv): "where the ownership pattern of the power plant varies during the financial year, the proportionate consumption of each captive user shall be determined on the basis of the weighted average shareholding of such captive user during the financial year".
- Separately, from the explanatory note, on the verification period for a plant's first or last year of ownership, not on a user's changing share: "in cases involving the first year or the last year of ownership of a captive generating station, the verification may be undertaken for the relevant part of the financial year applicable to such ownership".
What the source does not say
It does not say how the average is weighted. My reading: by the time each holding was in place. The nodal agency's procedure should settle days or months, and whether the 26% exemption uses the same average. Ask before you file.
Weighted average, my reading
- A user holds 10% for April to June (3 months) and 20% for July to March (9 months)
- Time-weighted: (10 x 3 + 20 x 9) / 12 = 210 / 12 = 17.5%
- 17.5% is the x used in that user's limit, Y times x, divided by X, not 20% at year end
An example of a time-weighted average. The rule does not state the weights.
What Senseible does here
Senseible reads electricity bills into monthly records. It does not test captive status or work out the limits.
- Excess draw in a group captive plant
- Captive plant fails the 51% test
- Group captive rules for solar
- Group captive solar and Scope 2
- Free carbon calculators
Last reviewed 2026-11-05. Rule 3 of the Electricity Rules, 2005 as substituted by G.S.R. 186(E), 13 March 2026; parts in force from 1 April 2026. Checked 5 November 2026. Check the state nodal agency's or the National Load Despatch Centre's procedure before you file.