The Energy Conservation (Amendment) Act, 2010

Current Status: The Energy Conservation (Amendment) Bill, 2010 was passed by the Lok Sabha on May 4, 2010 and the Rajya Sabha on August 17, 2010

Ministry: Power

Considering the vast potential of energy savings and benefits of energy efficiency, the Government of India enacted the Energy Conservation Act, 2001 (52 of 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 relate to Designated Consumers, Standard and Labelling of Appliances, Energy Conservation Building Codes, Creation of Institutional Set up (BEE) and Establishment of Energy Conservation Fund.

The Energy Conservation Act became effective from 1st March, 2002 and Bureau of Energy Efficiency (BEE) operationalized from 1st March, 2002. Energy efficiency institutional practices and programs in India are now mainly being guided through various voluntary and mandatory provisions of the Energy Conservation Act.

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

Main Amendments

• 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
• Under the original Act, the government could specify energy conservation building codes for commercial buildings with a connected load of more than 500 kW or contract demand of 600 kVA. The amendment broadens the range of commercial buildings to which such building codes apply to those with a connected load of more than 100 kW, or contracted demand of more than 120 kVA
• The amendment increases the penalty specified for offences committed under the original Act. Each offence shall attract a penalty of Rs 10 lakh (Rs 10,000 earlier), with an additional penalty of Rs 10,000 for each day that the offence remains (Rs 1000 earlier). The additional penalty, for those industries who consume energy in excess of norms, will be the value of the excess energy consumed.
• The original act provided for the setting up of an Appellate Tribunal for Energy Conservation, which would hear appeals against orders of the central or state government. The amendment does away with this provision and provides for appeals against such orders to be heard by the appellate tribunal established under the Electricity Act, 2003