Why in news?

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

Significance

• 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, identification of Energy Losses Category wise, Implementation of energy conservation & efficiency measures 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.
• This decision will facilitate Energy Accounting & Auditing as mandatory activity for all the DISCOMs, leading to the actions towards reducing losses and increase 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.
• It will also assist in developing projects for reducing electricity losses by DISCOMs and implementing effective solutions.
• The amendment is expected to improve the financial state of the DISCOMs.
• This move is expected to gradually become more effective if extended upto the level of end consumers.

Energy Conservation (EC) Act , 2001

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.

About Bureau of Energy Efficiency

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