Power Ministry mandates energy accounting for discoms every quarter, every year

  • There will also be Annual energy audit by an independent Accredited Energy Auditor, said the Ministry of Power
  • Energy accounting will enable discoms to take appropriate measure for reducing their electricity losses

New Delhi: The Ministry of Power has mandated electricity distribution companies (discoms) to undertake energy accounting on periodic basis. “A regulation in this regard was issued by Bureau of Energy Efficiency (BEE) with the approval of the Ministry of Power, under the provisions of Energy Conservation (EC) Act, 2001. The notification stipulates quarterly energy accounting by DISCOMs, through a certified Energy Manager, within 60 days. There will also be Annual energy audit by an independent Accredited Energy Auditor. Both these reports will be published in the public domain,” the Ministry of Power said in a statement on Monday. 

Energy accounting will allow discoms to cut losses

Energy accounting reports will provide detailed information about electricity consumption by different categories of consumers and the transmission and distribution losses in various areas. It will identify areas of high losses and theft and enable corrective action. This measure will also enable fixation of responsibility on officers for losses and theft. The data will enable discoms to take appropriate measure for reducing their electricity losses. Discoms will be able to plan for suitable infrastructure up-gradation as well as demand side management (DSM) efforts in an effective manner. This initiative will further contribute towards India’s climate actions in meeting India’s Paris Agreement Goals, said the statement.

Ensuring economic viability of discoms

These regulations have been issued under the ambit of Energy Conservation Act, 2001, with an overall objective to reduce distribution sector inefficiency and losses, thereby moving towards economic viability of discoms. The BEE has certified a pool of National Accredited Energy Auditors and Energy Managers who possess expertise in preparing energy accounting and audit reports, duly providing recommendations for loss reduction and other technical measures. The aforesaid regulations were pre-published in April for seeking public comments and thereafter the Ministry of Power held detailed discussions with various stakeholders before finally issuing these regulations.

“In September 2020, through a separate notification, all the Electricity Distribution Companies were notified as Designated Consumers (DCs) under the EC Act. Owing to the potential benefits of energy auditing on the entire distribution system and retail supply business, it was imperative to develop a set of comprehensive guidelines and framework such that all distribution utilities across India can adhere to and formulate actions,” said the statement.

Energy Accounting prescribes accounting of all energy inflows at various voltage levels in the distribution periphery of the network, including renewable energy generation and open access consumers, as well as energy consumption by the end consumers. Energy accounting on periodic basic and subsequent annual energy audit, would help to identify areas of high loss and pilferage, and thereafter focussed efforts to take corrective action. “The Regulations issued today provides much awaited broad framework for Electricity Distribution Companies to carry out Annual Energy Audit and Quarterly Periodic Energy Accounting with necessary Pre-requisites and reporting requirements to be fulfilled,” said the statement.

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