All the Electricity Distribution Companies (DISCOMs) to be covered under the Energy Conservation (EC) Act, 2001

All the Electricity Distribution Companies (DISCOMs) to be covered under the Energy Conservation (EC) Act, 2001

Part of: GS Prelims and GS-III – Energy sector

In news

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

Key takeaways 

• The notification was formulated in consultation with Bureau of Energy Efficiency (BEE).
• According to it, all entities having issued distribution license by State/Joint Electricity Regulatory Commission under the Electricity Act, 2003 (36 of 2003)” are notified as Designated Consumers (DCs).
• After this notification, all the DISCOMs will be governed under the various provisions of EC Act, such as Appointment of Energy Manager, Energy Accounting & Auditing etc. for each DISCOMs.
• Earlier, the DISCOMs whose annual energy losses were equal to or above 1000 MU were only covered as DCs.
• Now with this notification, the number of DISCOMs covered under the EC Act will increase from 44 to 102.

Important value additions 

Bureau of Energy Efficiency

• It is a statutory body under the Ministry of Power, Government of India.
• It assists in developing policies and strategies. 
• Objective: Reducing the energy intensity of the Indian economy.