Discuss the salient features of Energy Conservation Act, 2001 and the Electricity Act, 2003 Acts and their implications for the power distribution sector. 

With the background of high energy saving potential and its benefits, bridging the gap between demand and supply, reducing environmental emissions through energy saving, and to effectively overcome the barrier, the Government of India has enacted

the Energy Conservation Act – 2001. The Act provides the much-needed legal framework and institutional arrangement for embarking on an energy efficiency drive.

Under the provisions of the Act, Bureau of Energy Efficiency has been established with effect from 1st March 2002 by merging erstwhile Energy Management Centre of Ministry of Power. The Bureau would be responsible for implementation of policy programmes and coordination of implementation of energy conservation activities.

Important features of the Energy Conservation Act are:

Standards and Labeling

Standards and Labeling (S & L) has been identified as a key activity for energy efficiency improvement. The S & L program, when in place would ensure that only energy efficient equipment and appliance would be made available to the consumers.

The main provision of EC act on Standards and Labeling are:

• Evolve minimum energy consumption and performance standards for notified equipment and appliances.

• Prohibit manufacture, sale and import of such equipment, which does not conform to the standards.

• Introduce a mandatory labeling scheme for notified equipment appliances to enable consumers to make informed choices

• Disseminate information on the benefits to consumers Designated Consumers

The main provisions of the EC Act on designated consumers are:  E4-E5 Electrical(Technical) Rev date: 23-03-11

BSNL, India For Internal Circulation Only

• The government would notify energy intensive industries and other establishments as designated consumers;

• Schedule to the Act provides list of designated consumers which covered basically energy intensive industries, Railways, Port Trust, Transport Sector, Power Stations, Transmission & Distribution Companies and Commercial buildings or establishments;

• The designated consumer to get an energy audit conducted by an accredited energy auditor;

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