MOP MANDATES ALL DISCOMS TO COMPLY WITH EC-ACT 2001

The move will assist in developing projects for reducing the electricity losses… Image by Susan Cipriano from Pixabay

The Ministry of Power (MoP), GoI has recently issued notification S.O. 3445 (E) – to cover all the DISCOMs under the preview of the EC Act. As per the notification, which was formulated in consultation with Bureau of Energy Efficiency (BEE) “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).

Henceforth, 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 DISCOM. 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 the electricity losses by DISCOMs and implementing effective solutions. This is also expected to improve the financial state of the DISCOMs. Contextually, BEE assists in developing policies and strategies with the primary objective of reducing the energy intensity of the Indian economy

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