The 16th Dec., 2009


No. PSERC/Secy./Regulation 45. In exercise of the powers conferred under Section 181 of the Electricity Act, 2003 (36 of 2003 ) and all other powers enabling the Commission in this behalf, the Punjab State Electricity Regulatory Commission hereby makes the following Regulations for harnessing captive power generation.


1.         Short title and commencement:

a)                 These Regulations shall be called the “Punjab State Electricity Regulatory Commission (Harnessing of Captive Power Generation) Regulations, 2009”.

b)         These Regulations shall be applicable to all the Captive Power             Plants in the State of Punjab.

c)         These Regulations shall come into force from the date of their   publication in the official Gazette of the State of Punjab.


2.         Definitions

a)                 “Act” means the Electricity Act, 2003.

b)                 “Active Power” means the product of voltage and in-phase component of alternating current measured in units of watts and standard multiples thereof.

c)                  “Billing cycle” means a period of one month.

d)                 “Contract Demand” means the maximum demand in KVA sanctioned to a consumer.

e)                 “Captive Power Plant (CPP)” means the power plant that fullfils the criteria laid down in Rule-3 of the Electricity Rules, 2005.

f)                    “Firm Power” means the power supplied on agreed terms & conditions by a CPP owner to a Licensee as per the contract.

g)                 “Infirm Power” means power supplied by a CPP to a Licensee which is not committed and is not covered under any contract and will also include power from a standby plant.

h)                  “Licensee” means a Distribution Licensee.

i)                    “Merit Order” means order of priority of various generating units under BBMB/ ISGS/SGS/IPPs etc. operating in synchronism with Northern Grid System, compiled by the State Load Despatch Centre (SLDC) pursuant to schedule and despatch requirements, generally in ascending order of variable cost of energy.

j)                    “Reactive Power” means the product of voltage and current and the sine of the phase angle between them measured in units of volt amperes reactive and standard multiples thereof.

k)                  “Standby and Startup Power” means the power required by a CPP during pre-commissioning or planned/forced outages. 

l)                    “UI rates” mean the Unscheduled Interchange rates specified by the Central Electricity Regulatory Commission from time to time.

m)               Words and expressions used in these Regulations and not defined specifically herein will have the same meanings as assigned to them in the Act.       


3.         Terms and Conditions for operating CPP

(1)       A CPP may itself use or sell electricity to a Licensee or an Open Access customer in accordance with provisions of Section 9 of the Act.

(2)       A CPP intending to supply electricity to a Licensee will bear the cost of the switch yard and interconnection facilities up to the point of injection into the grid substation of the Licensee. In case the quantum of such electricity is 3 MW or more, the cost of the bay, breaker in the Licensee’s grid and equipment for communication of real time data to SLDC will also be borne by the CPP. Specifications of the synchronization and other equipment including technical details of connectivity will be prescribed by the Licensee and the CPP will ensure compliance therewith.

(3)       Charges in the form of one time permission fee will be payable by a CPP seeking connectivity with the grid and operation in synchronism with the grid, at the rates specified in the Tariff Order/ Schedule of General Charges.

(4)       A CPP connected in parallel with the grid, will ensure compliance of the State Grid Code & Indian Electricity Grid code.

(5)       A CPP supplying electricity to a Licensee in excess of 10 MW will furnish its Annual Maintenance Schedule (1st April to 31st March) to the SLDC and the Licensee by the 15th of November of the previous year. In the case of a CPP supplying electricity less than 10 MW, its Annual Maintenance Schedule for the succeeding year will be furnished to the Licensee by 31st of March of the current year.

(6)       A CPP will intimate planned outages to the SLDC with details of their commencement, estimated duration and resumption of generation, at least an hour in advance. In the case of an unplanned outage, the CPP will inform the SLDC and the Licensee both of the stoppage of its power plant and resumption of generation within 15 minutes of their occurrence.       

(7)       A CPP which is a consumer of the Licensee and an Open Access customer purchasing electricity from a CPP will be eligible to reduce their Contract Demand as per Conditions of Supply of the Licensee as approved by the Commission.


4.         Standby and Startup Power

(1)       A CPP which is also a consumer of the Licensee will:

(a)       ensure that  his maximum demand does not exceed the sanctioned Contract Demand;

(b)       be liable to pay demand surcharge if maximum demand exceeds sanctioned Contract Demand in any month. The surcharge will be as applicable to Large Supply (LS) consumers in such cases.

 (2)      A CPP which is not a consumer of the Licensee but seeks to avail of Standby and Startup Power will be governed by the following terms & conditions :-

(a)               Electricity for Standby and Startup will be provided by the Licensee only during startup at the commissioning stage or during planned/forced outages. Such supply will not exceed 15% of the rated capacity of the CPP.

(b)               The tariff for Standby and Startup Power will be as is applicable to LS (General Industry) consumers.   

(c)               When the maximum demand of a CPP in a month exceeds the agreed requirement, it will be liable to pay penalty on the excess demand equivalent to demand surcharge as applicable to LS consumers.

(d)               A CPP seeking Standby and Startup Power will pay @ Rs 20/- per KVA per month as commitment charges to be adjusted against the bill for electricity drawal.

(e)               The CPP and the Licensee will sign an agreement for meeting the requirement of Standby and Startup Power incorporating the above terms & conditions.



5.         Sale of surplus Firm Power to a Licensee

(1)                     Contract for sale of Firm Power

A CPP seeking to sell power to a Licensee will enter into a contract with the Licensee on mutually agreed terms & conditions for sale of Firm Power.

(2)          Billing

               (a)  Metering

Metering point will be on the high voltage side of the step up transformer in the CPP premises. Meters, metering procedures, type of meter and its testing etc. will be as per the State Grid Code notified by the Commission.

               (b) Payment

Based on the energy account prepared by the SLDC, a CPP will raise bill(s) at the end of each billing cycle for electricity actually injected after accounting for energy drawal, if any, from the Licensee. Other charges such as meter rentals, commitment charges, Open Access charges payable to the Licensee, etc. will also be taken into account while preparing the bills. Payment of such bills will be effected by a Licensee in the same period as is applicable to LS consumers of the Licensee. The Licensee will be liable to pay surcharge in case of delayed payments at the rate as applicable to LS consumers.

In case the amount payable by the Licensee for purchase of power is less than the total charges payable by the CPP, then the CPP will pay the net amount within the same period as applicable to LS consumers of the Licensee. CPP will also be liable to pay surcharge for delayed payments at the rate applicable to LS consumers.

(3)          Reactive Power Injection

The CPP will inject reactive power which will not be less than 62% of the active energy to be supplied to the grid. Any shortfall in the injection of reactive energy will be charged as per rates approved by CERC.

(4)                     Purchase of Power

Power from a CPP will be purchased as and when it is generated and the merit order will not be applicable in such a case.

(5)          SLDC Fee and Charges

      A CPP will pay SLDC fee and charges as may be specified by the Commission.

(6)          Monthly Minimum Charges (MMC)

(a)    A CPP which is a consumer of a Licensee will be liable to pay MMC as per the relevant Schedule of Tariff.

(b)    A CPP to which the Conditions of Supply of a Licensee are applicable will be entitled to avail of the benefit of deemed sale when:

(i)         the difference between actual captive generation (after deducting auxiliary consumption and power injected into the grid, if any) and power drawn from the Licensee during any billing period exceeds the energy equivalent of MMC; and

(ii)        drawal of electricity from the grid of the Licensee is less than the energy equivalent of MMC.

Entitlement to deemed sale will be the difference between the energy equivalent of MMC and the electricity drawn from the grid of the Licensee.


6.         Sale to a Third Party

A CPP may sell electricity to a third party which is a consumer of the Licensee subject to compliance with the Open Access Regulations notified by the Commission. The State Transmission Utility and the Licensee will facilitate such third party sale.


 7.        Tariff

(1)       Sale of Firm Power

Tariff for sale of power from a CPP to a Licensee will be equivalent to tariff rates applicable to LS (General Category) consumers. These rates will be applicable when power is supplied for a period of up to five years.

For a period beyond five years, power will be purchased through competitive bidding process.

(2)       Sale of Infirm Power

Infirm Power will be paid for by the Licensee at UI rates notified by the Central Electricity Regulatory Commission.


8.         Banking of Energy:

(1)       For NRSE based CPPs

Banking of Energy will be permitted as per the NRSE policy, 2006 notified by the Govt. of Punjab.

(2)       For Other CPPs

The facility of banking will be provided free of cost by a Licensee. However, the banked energy will be permitted to be drawn subject to the condition that:

·                    it will be drawn within one year from the date of banking failing which the Licensee will effect payment therefor to the CPP in accordance with Reg. 5(2) above.

·                    it will be not be drawn during the peak load hours.

 Energy accounts of all banking transactions will be maintained by the SLDC.

9.         Power to remove difficulties

If any difficulty arises in giving effect to any of the provisions of these Regulations, the Commission may do or undertake things or by a general or special order, direct a Licensee or CPP to take suitable action not being inconsistent with the Act, which appears to the Commission to be necessary or expedient for the purpose of removing difficulties.


10.       Power to amend

The Commission may, at any time, add or amend any of the provisions of these Regulations.








                                                                                                                                       (NAMITA SEKHON),