The Ministry of Power has notified the Electricity (Amendment) Rules, 2026.
The amendments retain the core statutory thresholds of minimum 26 per cent ownership and 51 per cent consumption by captive users, while revising the framework for implementation and verification of captive status. Key changes include greater flexibility in proportional consumption for group captive users, clarification that captive consumption will be assessed with reference to the aggregate generation of the generating unit or units identified for captive use, and adoption of a weighted average shareholding test during the financial year. The amended rules also provide that a captive user, its subsidiaries, its holding company and other subsidiaries of that holding company will be treated as a single captive user. In addition, verification of captive status will be undertaken by the nodal agency designated by the state government for intra-state cases and by the national load despatch centre for multi-state arrangements.