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Captive generation is exempt from the cross-subsidy surcharge provided the consumer

  • A.generates entirely from renewable sources
  • B.consumes the whole of the plant's output
  • C.is connected at transmission rather than distribution voltage
  • D.owns a qualifying share of the generating plant

Answer: D

The rules require a minimum ownership share and a minimum proportion of the output consumed by the owners, which is what distinguishes captive use from a purchase. Meeting both tests is the attraction of a group captive arrangement.

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