# Can members of a registered co-operative society run a captive power plant together?

Canonical: https://senseible.earth/answers/co-operative-society-captive-power-plant-collective-test

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](https://senseible.earth/answers/group-captive-solar-26-percent-rule)
- [Captive plant fails the 51% test](https://senseible.earth/answers/captive-plant-fails-51-percent-test-what-happens)
- [Group captive solar and Scope 2](https://senseible.earth/answers/group-captive-solar-scope-2)
- [Free carbon calculators](https://senseible.earth/calculators)

Sources: [Electricity (Amendment) Rules, 2026, General Statutory Rules (G.S.R.) 186(E), substituting rule 3 of the Electricity Rules, 2005 (captive generating plants), with Schedule III and the Ministry of Power explanatory note](https://www.powermin.gov.in/static/uploads/2026/05/c84c643ff478be845cff8d7dd4349d67.pdf)

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.