Context: Recently, the Ministry of Power has mandated all DISCOMs to comply Energy Conservation (EC) Act, 2001.
Key Points
All the DISCOMs will be governed under the various provisions of EC Act, such as

• Appointment of Energy Manager.
• Energy Accounting & Auditing.
• Identification of Energy Losses Category wise.
• Implementation of energy conservation & efficiency measures etc. for each DISCOMs.
• Facilitate Energy Accounting & Auditing as mandatory activity for all the DISCOMs.

Expected Benefits

• Help DISCOMs to monitor their performance parameters
• Bring in transparency in the Distribution sector through professional inputs.
• Assist in developing projects for reducing the electricity losses by DISCOMs
• Implementing effective solutions.
• Improve the financial state of the DISCOMs.
• Better monitoring by the Government.

About Bureau of Energy Efficiency

• The Government of India set up Bureau of Energy Efficiency (BEE) on 1st March 2002 under the provisions of the Energy Conservation Act, 2001.
• BEE is a statutory body under the Ministry of Power.
• Assists in developing policies and strategies with the primary objective of reducing the energy intensity of the Indian economy.
• Coordinates with designated consumers, designated agencies, and other organization to identify and utilize the existing resources and infrastructure, in performing the functions assigned to it under the EC Act.

Energy Conservation law and Policies

Energy Conservation Act, 2001

• Energy efficiency institutional practices and programs in India are mainly being guided through various voluntary and mandatory provisions of the Energy Conservation Act, 2001
• The Act provides for the legal framework, institutional arrangement and a regulatory mechanism at the Central and State level to embark upon energy efficiency drive in the country.

Five major provisions of EC Act

• Designated Consumers
• Standard and Labelling of Appliances
• Energy Conservation Building Codes
• Creation of Institutional Set up (BEE)
• Establishment of Energy Conservation Fund.

The EC Act was amended in 2010 and the main amendments of the Act are:

• The Central Government may issue the energy savings certificate to the designated consumer whose energy consumption is less than the prescribed norms and standards in accordance with the procedure as may be prescribed.
• The designated consumer whose energy consumption is more than the prescribed norms and standards shall be entitled to purchase the energy savings certificate to comply with the prescribed norms and standards.
• The Central Government may, in consultation with the Bureau, prescribe the value of per metric ton of oil equivalent of energy consumed.
• Commercial buildings which are having a connected load of 100 kW or contract demand of 120 kVA and above come under the purview of ECBC under EC Act.