In Brief
A power distribution company challenged whether electricity transmitted from a captive power plant (SBPIL) to a related corporate entity (SBMPL) could qualify as 'own use' under the Electricity Act. The Supreme Court upheld the Electricity Regulatory Commission and APTEL's decision. The Court held that a captive plant can supply electricity to others as 'own use' if the recipient holds at least 26% ownership and the combined consumption of the captive users is at least 51% of total generation annually. Both conditions were satisfied here, entitling the entities to open access without surcharge. The Court emphasized that the Act's liberal captive generation provisions aim to promote industrial growth and enable groups of consumers to establish optimal-scale plants.
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