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Annual energy audits mandatory for all DISCOMs; govt notifies regulations

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  • Every DISCOM shall have its first energy audit conducted, by accredited energy auditor within 4 months from the date of coming into effect of these regulations, said Power Ministry

  • The first energy audit conducted shall take into account the energy accounting of electricity distribution company for the last 12 months

New Delhi: The government has recently notified a set of regulations that mandates all power distribution companies (DISCOMs) to undertake annual energy audits. In a gazette notification published on April 15, the Ministry of Power said that the Bureau of Energy Efficiency (Manner and Intervals for Conduct of Energy Audit (Accounting) in electricity distribution companies) Regulations, 2021, “shall extend to all electricity distribution companies.” It added, “Every electricity distribution company shall have its first energy audit (accounting) conducted, by accredited energy auditor within 04 months from the date of coming into effect of these regulations.”

The first energy audit conducted shall take into account the energy accounting of electricity distribution company for the last 12 months from the date of coming into effect of these regulations, said the notification.

DISCOMs will conduct energy audit for every financial year

According to the new regulations, “Every electricity distribution company shall conduct energy audit (accounting) for every financial year within a period of 03 months from the expiry of relevant financial year. There shall not be a gap of more than 12 months between two energy audits (accounting) conducted by the electricity distribution company under this sub-regulation (3), and report of the energy audit (accounting) shall be presented to  the management of the electricity distribution company within 04 months of the end of the period for  which the energy audit (accounting) relates. 

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“It is hereby clarified that if the first energy audit (accounting) in accordance with sub-regulation (1) above is conducted during a financial year, then the energy audit (accounting) for the said financial year as per this sub-regulation (3) shall not include the time period audited in first energy audit (accounting),” said the Ministry of Power.

According to the new regulations, the external auditor will verify energy flow across the power distribution chain of DISCOMs, right from feeders to transformers and consumers.

The backdrop

The Ministry of Power had issued a notification on September 28, 2020 to cover all DISCOMs under the preview of the Energy Conservation Act, 2001. With the notification, all DISCOMs came under the purview of the various provisions of the EC Act, such as Appointment of Energy Manager, Energy Accounting and Auditing, identification of Energy Losses Category wise, implementation of energy conservation and efficiency measures etc for each DISCOMs. 

In an official statement released at the time, the Ministry of Power had said, “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. 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 the efficiency and reduce the energy loss.”                  

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