The Ministry of Power has insisted that all DISCOMs must comply with Energy Conservation (EC) Act, 2001.
The Ministry of Power said that 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).
All the DISCOMs will be governed under the various provisions of EC Act, such as the appointment of an energy manager, energy accounting and auditing, identification of energy losses, implementation of energy conservation and efficiency measures. 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 and auditing as a mandatory activity for all the DISCOMs, leading to the actions towards reducing losses and increase profitability.
The amendment is expected to improve the financial state of the DISCOMs. The quarterly data of these DISCOMs will be collected and monitored by the government to suggest measures for increasing efficiency and reduce the energy loss. This move is expected to gradually become more effective if extended up to the level of end consumers.