ministry-of-power-mandates-all-discoms-to-comply-energy-conservation-ec-act-2001

Context: The Ministry of Power, Government of India issued notification to cover all the Electricity Distribution Companies (DISCOMs) under the preview of the EC Act. 

More on news:

  • It was formulated in consultation with the Bureau of Energy Efficiency (BEE).
  • After this notification, all the DISCOMs having issued distribution licenses by State/Joint Electricity Regulatory Commission under the Electricity Act, 2003 (36 of 2003)" are notified as Designated Consumers (DCs).
  • Earlier, the DISCOMs whose annual energy losses were equal to or above 1000 MU were only covered as DCs. 

Benefits of the move:

  • This decision will facilitate Energy Accounting & Auditing as mandatory activity for all the DISCOMs, leading to the actions towards reducing losses and increasing profitability of DISCOMs.
  • The amendment is expected to help DISCOMs to monitor their performance parameters and bring in transparency in the Distribution sector through professional inputs. 
  • The amendment is expected to improve the financial state of the DISCOMs. 

The Energy Conservation Act 2001

  • The Energy Conservation Act empowers the government to specify norms and standards of energy efficiency to be followed by different industries (who are specified in a schedule to the Act) in their use of power. 
  • The Act empowers state governments to enforce its various provisions.
  • The Act also establishes the Bureau of Energy Efficiency under the central government to specify qualifications and certification procedures for energy auditors and managers who shall audit the use of energy by industries.

The Energy Conservation (Amendment) Act, 2010

  • The Act expands the scope of energy conservation norms for buildings and tightens the applicability of energy efficiency norms for appliances and equipment. 
  • It provides a framework within which savings on energy use can be traded between those industries who are energy efficient and those whose consumption of energy is more than the maximum set by the government. 
  • It increases penalties for offences and provides for appeals to be heard by the Electricity Appellate Tribunal set up under the Electricity Act, 2003.

Bureau of Energy Efficiency

  • Bureau of Energy Efficiency (BEE) is a statutory body under the Ministry of Power.
  • It assists in developing policies and strategies with the primary objective of reducing the energy intensity of the Indian economy.

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