Can members of a registered co-operative society run a captive power plant together?
Yes, if the members together hold 26% and consume 51%. For a plant set up by a registered co-operative society, Rule 3(2)(c) says the 26% ownership and 51% consumption conditions are satisfied collectively by the members. Unlike the association of persons clause, the text of clause (c) has no line capping each member at its proportionate share.
The rule
Rule 3(2)(c): "In the case of a power plant set up by a registered co-operative society, the conditions specified in sub-clause (i) and (ii) of clause (a) above shall be satisfied collectively by the members of the co-operative society." Sub-clause (i) is not less than 26% ownership by the captive users, and (ii) is not less than 51% of the year's generation consumed for captive use.
How it differs from an association of persons
- Clause (d), for associations, adds a limit on each user's captive consumption and a 26% exemption. Clause (c) does not repeat them. That is my reading of the text; confirm it in the nodal agency's procedure.
- Rule 3(3) still applies: if the minimum captive consumption is not met in the year, all the plant's electricity is treated as supply by a generating company and the surcharges are levied.
Example year
- Members together hold 30% of the plant, which meets the 26% test
- Members together consume 60% of the year's generation, which meets the 51% test
- Both are tested on the members as one group
An example. The 26% and 51% are the rule's own.
What Senseible does here
Senseible reads electricity bills into monthly records. It does not test captive status or work out the limits.
- Group captive rules for solar
- Captive plant fails the 51% test
- 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.