Ministry of Power Mandated for all DISCOMs to Comply Energy Conservation Act , 2001

The Ministry of Power, Government of India has issued a notification to include all the Electricity Distribution Companies (DISCOMs) under the Energy Conservation (EC) Act 2001.

Key Highlights

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


This decision by the Ministry of Power would facilitate Energy Accounting and Auditing as the mandatory activity for all the DISCOMs. This will lead to the actions to reduce the losses and to increase profitability of DISCOMs. These amendments would help DISCOMs to monitor their performance parameters. It would further bring in transparency in the Distribution sector through professional inputs. The move is expected to improve the financial state of the DISCOMs.

Energy Conservation Act 2001

The Energy Conservation Act of 2001 empowers the government to specify norms and standards of energy efficiency. These needs to be followed by different industries , who are mentioned in the schedule to the Act, in their use of power.  This Act empowers the state governments so as to enforce the provisions as prescribed under the act. It also establishes the Bureau of Energy Efficiency under the central government that specify qualifications and certification procedures for energy auditors and managers.

Energy Conservation (Amendment) Act, 2010

The Act expanded the scope of energy conservation norms for buildings. It also tightened the applicability of energy efficiency norms for appliances and equipment.  The amended act provides a framework that trades the savings on energy use between energy efficient industries and those whose consumption of energy is more than the prescribed limits.  The act further increases the penalties for offences. The appeals are heard by the Electricity Appellate Tribunal set up under the Electricity Act, 2003.