LexThe ENERGY CONSERVATION ACT 2001
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THE ENERGY CONSERVATION ACT, 2001
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ARRANGEMENT OF SECTIONS
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CHAPTER I
PRELIMINARY
SECTIONS
1. Short title, extent and commencement.
2. Definitions.
CHAPTER II
BUREAU OF ENERGY EFFICIENCY
3. Establishment and incorporation of Bureau of Energy Efficiency.
4. Management of Bureau.
5. Meetings of Governing Council.
6. Vacancies, etc., not to invalidate proceedings of Bureau, Governing Council or Committee.
7. Removal of member from office.
8. Constitution of Advisory Committees and other committees.
9. Director General of Bureau.
10. Officers and employees of Bureau.
11. Authentication of orders and decisions of Bureau.
CHAPTER III
TRANSFER OF ASSETS, LIABILITIES, ETC., OF ENERGY MANAGEMENT CENTRE TO BUREAU
12. Transfer of assets, liabilities and employees of Energy Management Centre.
CHAPTER IV
POWERS AND FUNCTIONS OF BUREAU
13. Powers and functions of Bureau.
CHAPTER V
POWER OF CENTRAL GOVERNMENT TO FACILITATE AND ENFORCE EFFICIENT USE OF ENERGY AND ITS
CONSERVATION
14. Power of Central Government to enforce efficient use of energy and its conservation.
14A. Power of Central Government to issue energy savings certificate.
14B. Power of Central Government to specify value of energy.
CHAPTER VI
POWER OF STATE GOVERNMENT TO FACILITATE AND ENFORCE EFFICIENT USE OF ENERGY AND ITS
CONSERVATION
15. Power of State Government to enforce certain provisions for efficient use of energy and its
conservation.
16. Establishment of Fund by State Government.
17. Power of inspection.
18. Power of Central Government or State Government to issue directions.
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CHAPTER VII
FINANCE, ACCOUNTS AND AUDIT OF BUREAU
SECTIONS
19. Grants and loans by Central Government.
20. Establishment of Fund by Central Government.
21. Borrowing powers of Bureau.
22. Budget.
23. Annual report.
24. Annual report to be laid before Parliament.
25. Accounts and audit.
CHAPTER VIII
PENALTIES AND ADJUDICATION
26. Penalty.
27. Power to adjudicate.
28. Factors to be taken into account by adjudicating officer.
29. Civil court not to have jurisdiction.
CHAPTER IX
APPELLATE TRIBUNAL FOR ENERGY CONSERVATION
30. Appellate Tribunal.
31. Appeal to Appellate Tribunal.
31A. Procedure and powers of Appellate Tribunal.
32. to 43. [Omitted.]
44. Right of appellant to take assistance of legal practitioner or accredited auditor and of Government
to appoint presenting officers.
45. Appeal to Supreme Court.
CHAPTER X
MISCELLANEOUS
46. Power of Central Government to issue directions to Bureau.
47. Power of Central Government to supersede Bureau.
48. Default by companies.
49. Exemption from tax on income.
50. Protection of action taken in good faith.
51. Delegation.
52. Power to obtain information.
53. Power to exempt.
54. Chairperson, Members, officers and employees of the Appellate Tribunal, Members of State
Commission, Director-General, Secretary, members, officers and employees of the Bureau to be
public servants.
55. Power of Central Government to issue directions.
56. Power of Central Government to make rules.
57. Power of State Government to make rules.
58. Power of Bureau to make regulations.
59. Rules and regulations to be laid before Parliament and State Legislature.
60. Application of other laws not barred.
61. Provisions of Act not to apply in certain cases.
62. Power to remove difficulty.
THE SCHEDULE.
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THE ENERGY CONSERVATION ACT, 2001
ACT NO. 52 OF 2001
[29th September, 2001.]
An Act to provide for efficient use of energy and its conservation and for matters connected
therewith or incidental thereto.
BE it enacted by Parliament in the Fifty-second Year of the Republic of India as follows:—
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement .—(1) This Act may be called the Energy Conservation
Act, 2001.
(2) It extends to the whole of India except the State of Jammu and Kashmir.
(3) It shall come into force on such date 1 as the Central Government may, by notification in the
Official Gazette, appoint; and different dates may be appointed for different provisions o f this Act and
any reference in any such provision to the commencement of this Act shall be construed as a reference to
the coming into force of that provision.
2. Definitions.—In this Act, unless the context otherwise requires,—
(a) “accredited energy auditor ” means 2[an energy auditor accredited in accordance with the
provisions of] clause (p) of sub-section (2) of section 13;
(b) “Appellate Tribunal” means the Appellate T ribunal for Energy Conservation 3[referred to in
section 30];
4[(c) “building” means any structure or erection or part of structure or erection after the rules
relating to energy conservation building codes have been notified under clause ( p) of section 14 and
clause (a) of section 15 and includes any existing structure or erec tion or part of structure or erection,
which is having a connected load of 100 Kilowatt (kW) or contract demand of 120 Kilo -volt Ampere
(kVA) and above and is used or intended to be used for commercial purposes;]
(d) “Bureau” means the Bureau of Energy Eff iciency established under sub -section ( 1) of
section 3;
(e) “Chairperson” means the Chairperson of the Governing Council;
(f) “designated agency” means any agency designated under clause (d) of section 15;
(g) “designated consumer” means any consumer specified under clause (e) of section 14;
(h) “energy” means any form of energy derived from fossil fuels, nuclear substances or materials,
hydro-electricity and includes electrical energy or electricity generated from renewable sources of
energy or bio-mass connected to the grid;
(i) “energy audit ” means the verification, monitoring and analysis of use of energy including
submission of technical report containing recommendations for improving energy efficiency with
cost benefit analysis and an action plan to reduce energy consumption;
(j) “energy conservation building codes ” means the norms and standards of energy consumption
expressed in terms of per square metre of the area wherein energy is used and includes the location of
the building;
(k) “energy consumption standards ” means the norms for process and energy consumption
standards specified under clause (a) of section 14;
1. 28th June, 2012 (sections 31, 33, 44, 45), vide notification No. S. O. 1433(E), dated 28th June, 2012, see Gazette of India,
Extraordinary, Part II, sec. 3(ii).
2. Subs. by Act 28 of 2010 s. 2, for “an auditor possessing qualifications specified under” (w.e.f. 24-8-2010).
3. Subs. by s. 2, ibid., for “established under section 30” (w.e.f. 24-8-2010).
4. Subs. by s. 2, ibid., for clause (c) (w.e.f. 24-8-2010).
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(l) “Energy Management Cent re” means the Energy Management Cent re set up under the
Resolution of the Government of India in the erstwhile Ministry of Energy, Department of Power No.
7(2)/87- EP(Vol. IV), dated the 5th July, 1989 and registered under the Societies Registration Act ,
1860 (21 of 1860);
(m) “energy manager ” means any individual possessing the qualificat ions prescribed under
clause (m) of section 14;
1[(ma) “energy savings certificate” means any energy savings certificate issued to the designated
consumers under sub-section (1) of section 14A;
(maa) “equipment or appliance” means any equipment or appli ance which consumes, generates,
transmits or supplies energy and includes any device that consumes any form of energy and produces
a desired work;]
(n) “Governing Council” means the Governing Council referred to in section 4;
(o) “member” means the member of the Governing Council and includes the Chairperson;
(p) “notification” means a notification in the Gazette of India or, as the case may be, the Official
Gazette of a State;
(q) “prescribed” means prescribed by rules made under this Act;
(r) “regulations” means regulations made by the Bureau under this Act;
(s) “Schedule” means the Schedule to this Act;
(t) “State Commission ” means the State Electricity Regulatory Commission established under
sub-section (1) of section 17 of the Electricity Regulatory Commissions Act, 1998 (14 of 1998);
(u) words and expressions used and not defined in this Act but defined in the Indian Electricity
Act, 1910 (9 of 1910) or the Electricity (Supply) Act, 1948 (54 of 1948) or the Electricity Regulatory
Commissions Act, 1998 (14 of 1998) shall have the meanings respectively assigned to them in those
Acts.
CHAPTER II
BUREAU OF ENERGY EFFICIENCY
3. Establishment and incorporation of Bureau of Energy Efficiency .—(1) With effect from such
date as the Central Government may, by notification, appoint, there shall be established, for the purposes
of this Act, a Bureau to be called the Bureau of Energy Efficiency.
(2) The Bureau shall be a body corporate by the name afores aid having perpetual succession and a
common seal, with power subject to the provisions of this Act, to acquire, hold and dispose of property,
both movable and immovable, and to contract, and shall, by the said name, sue or be sued.
(3) The head office of the Bureau shall be at Delhi.
(4) The Bureau may establish offices at other places in India.
4. Management of Bureau .—(1) The general superintendence, direction and management of the
affairs of the Bureau shall vest in the Governing Council which shall con sist of not less than twenty, but
not exceeding twenty-six, members to be appointed by the Central Government.
(2) The Governing Council shall consist of the following members, namely:—
(a) the Minister in charge of the Ministry or Department
of the Central Government dealing with the Power
ex officio Chairperson;
(b) the Secretary to the Government of India, in charge of
the Ministry or Department of the Central Government
dealing with the Power
ex officio member;
(c) the Secretary to the Government of India, in charge of
the Ministry or Department of the Central Government
dealing with the Petroleum and Natural Gas
ex officio member;
1. Ins. by Act of 28 of 2010, s. 2 (w.e.f. 24-8-2010).
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(d) the Secretary to the Government of India, in charge of
the Ministry or Department of the Central Government
dealing with the Coal
ex officio member;
(e) the Secretary to the Government of India, in charge of
the Ministry or Department of the Central Government
dealing with the Non-conventional Energy Sources
ex officio member;
(f) the Secretary to the Government of India, in charge of
the Ministry or Department of the Central Government
dealing with the Atomic Energy
ex officio member;
(g) the Secretary to the Government of India, in charge of
the Ministry or Department of the Central Government
dealing with the Consumer Affairs
ex officio member;
(h) Chairman of the Central Electricity Authority
established under the Electricity (Supply) Act , 1948
(54 of 1948)
ex officio member;
(i) Director-General of the Central Power Research
Institute registered under the Karnataka Societies Act ,
1960 (Karnataka Act 17 of 1960)
ex officio member;
(j) Executive Director of the Petroleum Conservation
Research Association, a society registered under the
Societies Registration Act, 1860 (XXI of 1860)
ex officio member;
(k) Chairman-cum-Managing Director of the Central Mine
Planning and Design Institute Limited, a company
incorporated under the Companies Act , 1956
(1 of 1956)
ex officio member;
(l) Director-General of the Bureau of Indian Standards
established under the Bureau of Indian Standards Act ,
1986 (63 of 1986)
ex officio member;
(m) Director-General of the National Test House,
Department of Supply, Ministry of Commerce and
Industry, Kolkata
ex officio member;
(n) Managing Director of the Indian Renewable Energy
Development Agency Limited, a company
incorporated under the Companies Act , 1956
(1 of 1956)
ex officio member;
(o) one member each from the five power regions
representing the States of the region to be appointed
by the Central Government
member;
(p) such number of persons, not exceeding four as may be
prescribed, to be appointed by the Central Government
as members from amongst persons who are in the
opinion of the Central Government c apable of
representing industry, equipment and appliance
manufacturers, architects and consumers
member;
(q) such number of persons, not exceeding two as may be
nominated by the Governing Council as members
member;
(r) Director-General of Bureau ex officio member-
secretary.
(3) The Governing Council may exercise all powers and do all acts and things which may be
exercised or done by the Bureau.
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(4) Every member referred to in clauses ( o), (p) and (q) of sub-section (2) shall hold office for a term
of three years from the date on which he enters upon his office.
(5) The fee and allowances to be paid to the members referred to in clauses ( o), ( p) and ( q) of
sub-section ( 2) and the manner of filling up of vacancies and the procedure t o be followed in the
discharge of their functions shall be such as may be prescribed.
5. Meetings of Governing Council .—(1) The Governing Council shall meet at such times and
places, and shall observe such rules of procedure in regard to the transaction of business at its meetings
(including quorum at such meetings) as may be provided by regulations.
(2) The Chairperson or, if for any reason, he is unable to attend a meeting of the Governing Council,
any other member chosen by the members present from among st themselves at the meeting shall preside
at the meeting.
(3) All questions which come up before any meeting of the Governing Council shall be decided by a
majority vote of the members present and voting, and in the event of an equality of votes, the Chairperson
or in his absence, the person presiding, shall have a second or casting vote.
6. Vacancies, etc., not to invalidate proceedings of Bureau, Governing Council or Committee .—
No act or proceeding of the Bureau or the Governing Council or any Committee shall be invalid merely
by reason of—
(a) any vacancy in, or any defect in the constitution of, the Bureau or the Governing Council or
the Committee; or
(b) any defect in the appointment of a person acting as a Director -General or Secretary of the
Bureau or a member of the Governing Council or the Committee; or
(c) any irregularity in the procedure of the Bureau or the Governing Council or the Committee not
affecting the merits of the case.
7. Removal of member from office .—The Central Government shall remove a member referred to
in clauses (o), (p) and (q) of sub-section (2) of section 4 from office if he—
(a) is, or at any time has been, adjudicated as insolvent;
(b) is of unsound mind and stands so declared by a competent court;
(c) has been convicted of an offence which, in the opinion of the Central Government,
involves a moral turpitude;
(d) has, in the opinion of the Central Government, so abused his position as to render his
continuation in office detrimental to the public interest:
Provided that no member shall be removed under this clause unless he has been give n a
reasonable opportunity of being heard in the matter.
8. Constitution of Advisory Committees and other committees .—(1) Subject to any regulations
made in this behalf, the Bureau shall, within six months from the date of commencement of this Act,
constitute Advisory Committees for the efficient discharge of its functions.
(2) Each Advisory Committee shall consist of a Chairperson and such other members as may be
determined by regulations.
(3) Without prejudice to the powers contained in sub -section ( 1), t he Bureau may constitute, such
number of technical committees of experts for the formulation of energy consumption standards or norms
in respect of equipment or processes, as it considers necessary.
9. Director-General of Bureau .—(1) The Central Government shall, by notification, appoint a
Director-General from amongst persons of ability and standing, having adequate knowledge and
experience in dealing with the matters relating to energy production, supply and energy management,
standardisation and efficient use of energy and its conservation.
(2) The Central Government shall, by notification, appoint any person not below the rank of Deputy
Secretary to the Government of India as Secretary of the Bureau.
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(3) The Director-General shall hold office for a term of 1[five years] from the date on which he enters
upon his office or until he attains the age of sixty years, whichever is earlier.
(4) The salary and allowances payable to the Director -General and other terms and conditions of his
service and other terms and conditions of service of the Secretary of the Bureau shall be such as may be
prescribed.
(5) Subject to general superintendence, direction and management of the affairs by the Governing
Council, the Director-General of the Bureau shall be the Chief Executive Authority of the Bureau.
(6) The Director -General of the Bureau shall exercise and discharge such powers and duties of the
Bureau as may be determined by regulations.
10. Officers and employees of Bureau.—(1) 2[The Bureau] may appoint such other officers and
employees in the Bureau as it considers necessary for the efficient discharge of its functions under this
Act.
(2) The terms and conditions of service of officers and other employees of the Bureau appointed
under sub-section (1) shall be such as may be prescribed.
11. Authentication of orders and decisions of Bureau .—All orders and decisions of the Bureau
shall be authenticated by the signature of the Director -General or any other officer of the Bureau
authorised by the Director-General in this behalf.
CHAPTER III
TRANSFER OF ASSETS, LIABILITIES, ETC., OF ENERGY MANAGEMENT CENTRE TO BUREAU
12. Transfer of assets, liabilities and employees of Energy Management Cent re.—(1) On and
from the date of establishment of the Bureau—
(a) any reference to the Energy Management Cent re in any law other than this Act or in any
contract or other instrument shall be deemed as a reference to the Bureau;
(b) all properties and as sets, movable and immovable of, or belonging to, the Energy
Management Centre shall vest in the Bureau;
(c) all the rights and liabilities of the Energy Management Cent re shall be transferred to, and be
the rights and liabilities of, the Bureau;
(d) without prejudice to the provisions of clause (c), all debts, obligations and liabilities incurred,
all contracts entered into and all matters and things engaged to be done by, with or for the Energy
Management Centre immediately before that date, for or in connection with the purposes of the s aid
Centre shall be deemed to have been incurred, entered into, or engaged to be done by, with or for, the
Bureau;
(e) all sums of money due to the Energy Management Cent re immediately before that date shall
be deemed to be due to the Bureau;
(f) all suits and other legal proceedings instituted or which could have been instituted by or
against the Energy Management Cent re immediately before that date may be continued or may be
instituted by or against the Bureau; and
(g) every employee holding any office under the Energy Management Centre immediately before
that date shall hold his office in the Bureau by the same tenure and upon the same terms and
conditions of service as respects remuneration, leave, provident fund, retirement or other terminal
benefits as he would have held such office if the Bureau had not been established and shall continue
to do so as an employee of the Bureau or until the expiry of six months from that date if such
employee opts not to be the employee of the Bureau within such period.
(2) Notwithstanding anything con tained in the Industrial Disputes Act , 1947 (14 of 1947) or in any
other law for the time being in force, the absorption of any employee by the Bureau in its regular service
under this section shall not entitle such employee to any compensation under that Act or other law and no
such claim shall be entertained by any court, tribunal or other authority.
1. Subs. by Act 28 of 2010 s. 3, for “three years” (w.e.f. 24-8-2010).
2. Subs. by s. 4, ibid., for “The Central Government” (w.e.f. 24-8-2010).
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CHAPTER IV
POWERS AND FUNCTIONS OF BUREAU
13. Powers and functions of Bureau.—(1) The Bureau shall, effectively co-ordinate with designated
consumers, design ated agencies and other agencies, recognise and utilise the existing resources and
infrastructure, in performing the functions assigned to it by or under this Act.
(2) The Bureau may perform such functions and exercise such powers as may be assigned to it by or
under this Act and in particular, such functions and powers include the function and power to—
(a) recommend to the Central Government the norms for processes and energy consumption
standards required to be notified under clause (a) of section 14;
1[(aa) recommend to the Central Government for issuing of the energy savings certificate under
section 14A;]
(b) recommend to the Central Government the particulars required to be displayed on label on
equipment or on appliances and manner of their display under clause (d) of section 14;
(c) recommend to the Central Government for notifying any user or class of users of energy as a
designated consumer under clause (e) of section 14;
(d) take suitable steps to prescribe guidelines for energy conservation building codes under clause
(p) of section 14;
(e) take all measures necessary to create awareness and disseminate information for efficient use
of energy and its conservation;
(f) arrange and organise training of personnel and specialists in the techniques fo r efficient use of
energy and its conservation;
(g) strengthen consultancy services in the field of energy conservation;
(h) promote research and development in the field of energy conservation;
(i) develop testing and certification procedure and promote t esting facilities for certification and
testing for energy consumption of equipment and appliances;
(j) formulate and facilitate implementation of pilot projects and demonstration projects for
promotion of efficient use of energy and its conservation;
(k) promote use of energy efficient processes, equipment, devices and systems;
(l) promote innovative financing of energy efficiency projects;
(m) give financial assistance to institutions for promoting efficient use of energy and its
conservation;
(n) levy fe e, as may be determined by regulations, for services provided for promoting efficient
use of energy and its conservation;
(o) maintain a list of accredited energy auditors as may be specified by regulations;
2[(p) specify, by regulations, the qualification s, criteria and conditions subject to which a person
may be accredited as an energy auditor and the procedure for such accreditation;]
(q) specify, by regulations, the manner and intervals of time in which the energy audit shall be
conducted;
(r) specify, by regulations, certification procedures for 3[energy auditors and energy managers] to
be designated or appointed by designated consumers;
(s) prepare educational curriculum on efficient use of energy and its conservation for educational
institutions, boards, universities or autonomous bodies and coordinate with them for inclusion of such
curriculum in their syllabus;
1[(sa) conduct examination for capacity building and strengthening of services in the field of
energy conservation including certification of energy managers and energy auditors;]
1. Ins. by Act of 28 of 2010, s. 5 (w.e.f. 24-8-2010).
2. Subs. by s. 5, ibid., for clause (p) (w.e.f. 24-8-2010).
3. Subs. by s. 5, ibid., for “energy managers” (w.e.f. 24-8-2010).
9
(t) implement international co -operation programmes relating to efficient use of energy and its
conservation as may be assigned to it by the Central Government;
(u) perform such other functions as may be prescribed.
CHAPTER V
POWER OF CENTRAL GOVERNMENT TO FACILITATE AND ENFORCE EFFICIENT USE OF ENERGY AND ITS
CONSERVATION
14. Power of Central Government to enforce efficient use of energy and its conservation .—The
Central Government may, by notification, in consultation with the Bureau,—
(a) s pecify the norms for processes and energy consumption standards for any equipment,
appliance which consumes, generates, transmits or supplies energy;
(b) specify equipment or appliance or class of equipments or applianc es, as the case may be, for
the purposes of this Act;
(c) prohibit manufacture or sale or purchase or import of equipment or appliance specified under
clause (b), unless such equipment or appliance conforms to energy consumption standards:
1[Provided that no notification prohibiting manufacture or sale or purchase or import of
equipment or appliance shall be issued within a period of six months from the date of notification
issued under clause (a) of this section:
Provided further that the Central Governmen t may, having regard to the market share and the
technological development having impact on equipment or appliance, and for reasons to be recorded
in writing, extend the said period of six months referred to in the first proviso by a further period not
exceeding six months;]
(d) direct display of such particulars on label on equipment or on appliance specified under
clause (b) and in such manner as may be specified by regulations;
(e) s pecify, having regard to the intensity or quantity of energy cons umed and the amount of
investment required for switching over to energy efficient equipments and capacity of industry to
invest in it and availability of the energy efficient machinery and equipment required by the industry,
2[any user or class of users of energy in the energy intensive industries and other establishments as
specified in the Schedule as a designated consumer] for the purposes of this Act;
(f) alter the list of Energy Intensive Industries specified in the Schedule;
(g) establish and prescribe such energy consumption norms and standards for designated
consumers as it may consider necessary:
Provided that the Central Government may prescribe different norms and standards for different
designated consumers having regard to such factors as may be prescribed;
(h) direct, having regard to qua ntity of energy consumed or the norms and standards of energy
consumption specified under clause ( a), the Energy Intensive Industries specified in the Schedule to
get energy audit conducted by an ac credited energy auditor in such manner and intervals of time as
may be specified by regulations;
(i) direct, if considered necessary for efficient use of energy and its conservation, any designated
consumer to get energy audit conducted by an accredited energy auditor;
(j) s pecify the matters to be included for the purposes of inspection under sub -section ( 2) of
section 17;
(k) direct any designated consumer to furnish to the designated agency, in such form and manner
and within such period, as may be presc ribed, the information with regard to the energy consumed
and action taken on the recommendation of the accredited energy auditor;
(l) direct any designated consumer to designate or appoint energy manager in charge of activities
for efficient use of energy and its conservation and submit a report, in the form and manner as may be
1. Subs. by Act 28 of 2010, s. 6, for the proviso (w.e.f. 24-8-2010).
2. Subs. by s. 6, ibid., for “any user or class of users of energy as a designated consumer” (w.e.f. 24-8-2010).
10
prescribed, on the status of energy consumption at the end of every financial year to the designated
agency;
(m) prescribe minimum qualification for 1[energy auditors and energy managers] to be designated
or appointed under clause (l);
(n) direct every designated consumer to comply with energy consumption norms and standards;
(o) direct any designated consumer, who does not fulfil the energy consumption norms and
standards prescribed under clause ( g), to prepare a scheme for efficient use of energy and its
conservation and implement such scheme keeping in view the economic viability of the investment in
2[such form, the time within which and the manner] as may be prescribed;
(p) prescribe energy conservation building codes for efficient use of energy and its conservation
in the building or building complex;
(q) amend the energy conservation building codes to suit the regional and lo cal climatic
conditions;
(r) d irect every owner or occupier of the building or building complex, being a designated
consumer to comply with the provisions of energy conservation building codes for efficient use of
energy and its conservation;
(s) direct, any designated consumer referred to in clause ( r), if considered necessary, for efficient
use of energy and its conservation in his building to get energy audit conducted in respect of such
building by an accredited energy auditor in such manner and interva ls of time as may be specified by
regulations;
(t) take all measures necessary to create awareness and disseminate information for efficient use
of energy and its conservation;
(u) arrange and organise training of personnel and specialists in the techniques for efficient use of
energy and its conservation;
(v) take steps to encourage preferential treatment for use of energy efficient equipment or
appliances:
Provided that the powers under clauses (p) to (s) shall be exercised in consultation with the concerned
State.
3[14A. Power of Central Government to issue energy savings certificate .—(1) The Central
Government may issue the energy savings certificate to the designated consumer whose energy
consumption is less than the prescribed norms and standards in accordance with the procedure as may be
prescribed.
(2) The designated consumer whose energy consumption is more than the prescribed norms and
standards shall be entitled to purchase the energy savings certificate to comply with the prescribed norms
and standards.
14B. Power of Central Government to specify value of energy.—The Central Government may, in
consultation with the Bureau, prescribe the value of per metric ton of oil equivalent of energy consumed
for the purposes of this Act.]
CHAPTER VI
POWER OF STATE GOVERNMENT TO FACILITATE AND ENFORCE EFFICIENT USE OF ENERGY AND ITS
CONSERVATION
15. Power of State Government to enforce certain provisions for efficient use of energy and its
conservation.—The State Government may, by notification, in consultation with the Bureau—
(a) amend the energy conservation building codes to suit the regional and local climatic
conditions and may, by rules made by it, specify and notify energy conservation building codes with
respect to use of energy in the buildings;
1. Subs. by Act 28 of 2010, s. 6, for “energy managers” (w.e.f. 24-8-2010).
2. Subs. by s. 6, ibid., for “such form and manner” (w.e.f. 24-8-2010).
3. Ins. by s. 7, ibid. (w.e.f. 24-8-2010).
11
(b) direct every owner or occupier of a building or building complex being a designated consumer
to comply with the provisions of the energy conservation building codes;
(c) direct, if considered necessary for efficient use of energy and its conservation, any designated
consumer referred to in clause ( b) to get energy audit conducted by an accredited energy auditor in
such manner and at such intervals of time as may be specified by regulations;
(d) designate any agency as designated agency to coordinate, regulate and enforce provisions of
this Act within the State;
(e) take all measures necessary to create awareness and disseminate information for efficient use
of energy and its conservation;
(f) arrange and organise training of personnel and specialists in the techniques for efficient use of
energy and its conservation;
(g) take steps to encourage preferential treatment for use of energy efficient equipment or
appliances;
(h) direct, any designated consumer to furnish to the designated agency, in such form and manner
and within such period as may be specified by rules made by it, information with regard to the energy
consumed by such consumer;
(i) specify the matters to be included for the purposes of ins pection under sub -section ( 2) of
section 17.
16. Establishment of Fund by State Government .—(1) The State Government shall constitute a
Fund to be called the State Energy Conservation Fund for the purposes of promotion of efficient use of
energy and its conservation within the State.
(2) To the Fund shall be credited all grants and loans that may be m ade by the State Government or,
Central Government or any other organisation or individual for the purposes of this Act.
(3) The Fund shall be applied for meet ing the expenses incurred for implementing the provisions of
this Act.
(4) The Fund created under sub-section (1) shall be administered by such persons or any authority and
in such manner as may be specified in the rules made by the State Government.
17. Power of inspection .—(1) The designated agency may appoint, after the expiry of five years
from the date of commencement of this Act, as many inspecting officers as may be necessary for the
purpose of ensuring compliance with energy consumption standards specified under clause ( a) of
section 14 or ensure display of particulars on label on equipment or appliance specified under clause ( b)
of section 14 or for the purpose of performing such other functions as may be assigned to them.
(2) Subject to any rules made under this Act, an inspecting officer shall have power to—
(a) inspect any operation carried on or in connection with the equipment or appliance specified
under clause (b) of section 14 or in respect of which energy standards under clau se (a) of section 14
have been specified;
(b) enter any place of designated consumer at which the energy is used for any activity and may
require any proprietor, employee, director, manager or secretary or any other person who may be
attending in any manner to or helping in, carrying on any activity with the help of energy—
(i) to afford him necessary facility to inspect—
(A) any equipment or appliance as he may require and which may be available at such
place;
(B) any production process to ascertain the energy consumption norms and standards;
(ii) to make an inventory of stock of any equipment or appliance checked or verified by him;
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(iii) to record the statement of any person which may be useful for, or relevant to, for efficient
use of energy and its conservation under this Act.
(3) An inspecting officer may enter any place of designated consumer—
(a) where any activity with the help of energy is carried on; and
(b) where any equipment or appliance notified under clause (b) of section 14 has been kept,
during the hours at which such place is open for production or conduct of business connected therewith.
(4) An inspecting officer acting under this section shall, on no account, remove or cause to be
removed from the place wherein he has entered, any equipment or appliance or books of account or other
documents.
18. Power of Central Government or State Government to issue directions .—The Central
Government or the State Government may, in the exercise of its powers and performance of its functions
under this Act and for efficient use of energy and its conservation, issue such directions in writing as it
deems fit for the purposes of this Act to an y person, officer, authority or any designated consumer and
such person, officer or authority or any designated consumer shall be bound to comply with such
directions.
Explanation.—For the avoidance of doubts, it is hereby declared that the power to issue directions
under this section includes the power to direct—
(a) regulation of norms for process and energy consumption standards in any industry or building
or building complex; or
(b) regulation of the energy consumption standards for equipment and appliances.
CHAPTER VII
FINANCE, ACCOUNTS AND AUDIT OF BUREAU
19. Grants and loans by Central Government .—The Central Government may, after due
appropriation made by Parliament by law in this behalf, make to the Bureau or to the State Governments
grants and loans of such sums of money as the Central Government may consider necessary.
20. Establishment of Fund by Central Government .—(1) There shall be constituted a Fund to be
called as the Central Energy Conservation Fund and there shall be credited thereto—
(a) any grants and loans made to the Bureau by the Central Government under section 19;
(b) all fees received by the Bureau under this Act;
(c) all sums received by the Bureau from such other sources as may be decided upon by the
Central Government.
(2) The Fund shall be applied for meeting—
(a) the salary, allowances and other remuneration of Director -General, Secretary, officers and
other employees of the Bureau;
(b) expenses of the Bureau in the discharge of its functions under section 13;
(c) fee and allowances to be paid to the members of the Governing Council under sub -section (5)
of section 4;
(d) expenses on objects and for purposes authorised by this Act.
21. Borrowing powers of Bureau .—(1) The Bureau may, with the consent of the Central
Government or in accordance with the terms of any general or special authority given to it by the Central
Government, borrow money from any source as it may deem fit for discharging all or any of its functions
under this Act.
(2) The Central Government may guarantee, in s uch manner as it thinks fit, the repayment of the
principal and the payment of interest thereon with respect to the loans borrowed by the Bureau under
sub-section (1).
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22. Budget.—The Bureau shall prepare, in such form and at such time in each financial year as may
be prescribed, its budget for the next financial year, showing the estimated receipts and expenditure of the
Bureau and forward the same to the Central Government.
23. Annual report.—The Bureau shall prepare, in such form and at such time in each financial year
as may be prescribed, its annual report, giving a full account of its activities during the previous financial
year, and submit a copy thereof to the Central Government.
24. Annual report to be laid before Parliament .—The Central Government shall cause the annual
report referred to in section 23 to be laid, as soon as may be after it is received, before each House of
Parliament.
25. Accounts and audit.—(1) The Bureau shall maintain proper accounts and other relevant records
and prepare an annual statement of accounts in such form as may be prescribed by the Central
Government in consultation with the Comptroller and Auditor-General of India.
(2) The accounts of the Bureau shall be audited by the Comptroller and Auditor -General of India at
such intervals as may be specified by him and any expenditure incurred in connection with such audit
shall be payable by the Bureau to the Comptroller and Auditor-General.
(3) The Comptroller and Auditor -General of India and any other person appointed by him in
connection with the audit of the accounts of the Bureau shall have the same rights and privileges and
authority in connection with such audit as the Comptroller and Auditor -General generally has in
connection with the audit of the Gover nment accounts, and in particular, shall have the right to demand
the production of books, accounts, connected vouchers and other documents and papers and to inspect
any of the offices of the Bureau.
(4) The accounts of the Bureau as certified by the Compt roller and Auditor -General of India or any
other person appointed by him in this behalf together with the audit report thereon shall be forwarded
annually to the Central Government and that Government shall cause the same to be laid before each
House of Parliament.
CHAPTER VIII
PENALTIES AND ADJUDICATION
26. Penalty.—(1) If any person fails to comply with the provisions of clause ( c) or clause ( d) or
clause (h) or clause (i) or clause (k) or clause (l) 1*** or clause (r) or clause (s) of section 14 or clause (b)
or clause (c) or clause ( h) of section 15, he shall be liable to a penalty which shall not exceed 2[ten lakh
rupees] for each such failure and, in the case of continuing failure, with an additional penalty which may
extend to 3[ten thousand rupees] for every day during which such failure continues:
Provided that no person shall be liable to pay penalty within five years from the date of
commencement of this Act.
4[(1A) If any person fails to comply with the provisions of clause ( n) of section 14, he shall be liable
to a penalty which shall not exceed ten lakh rupees and, in the case of continuing failure, with an
additional penalty which shall not be less than the price of every metric ton of oil equivalent of energy,
prescribed under this Act, that is in excess of the prescribed norms.]
(2) Any amount payable under this section, if not paid, may be recovered as if it were an arrear of
land revenue.
27. Power to adjudicate.—(1) For the purpose of adjudging under section 26, the State Commission
shall appoint any of its members to be an adjudicating officer for holding an inquiry in such manner as
may be prescribed by the Central Government, after giving any person concerned a reasonable
opportunity of being heard for the purpose of imposing any penalty.
(2) While holding an inquiry, the adjudicating officer shall have power to summon and enforce the
attendance of any person acquainted with the facts and circumstances of the case to give evidence or
produce any document which in the opinion of the adjudicating officer, may be useful for or relevant to
1. The words, brackets and letter “or clause (n)” omitted by Act of 28 of 2010, s. 8 (w.e.f. 24-8-2010).
2. Subs. by s. 8, ibid., for “ten thousand rupees” (w.e.f. 24-8-2010).
3. Subs. by s. 8, ibid., for “one thousand rupees” (w.e.f. 24-8-2010).
4. Ins. by s. 8, ibid. (w.e.f. 24-8-2010).
14
the subject -matter of the inquiry, and if, on such inquiry, he is satisfied that the person has failed to
comply with the provisions of any of the clauses of the sections specified in section 26, he ma y impose
such penalty as he thinks fit in accordance with the provisions of any of those clauses of that section:
Provided that where a State Commission has not been established in a State, the Government of that
State shall appoint any of its officer not below the rank equivalent to a Secretary dealing with legal affairs
in that State to be an adjudicating officer for the purposes of this section and such officer shall cease to be
an adjudicating officer immediately on the appointment of an adjudicating of ficer by the State
Commission on its establishment in that State:
Provided further that where an adjudicating officer appointed by a State Government ceased to be an
adjudicating officer, he shall transfer to the adjudicating officer appointed by the State Commission all
matters being adjudicated by him and thereafter the adjudicating officer appointed by the State
Commission shall adjudicate the penalties on such matters.
28. Factors to be taken into account by adjudicating officer .—While adjudicating the quantum of
penalty under section 26, the adjudicating officer shall have due regard to the following factors,
namely:—
(a) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a
result of the default;
(b) the repetitive nature of the default.
29. Civil court not to have jurisdiction .—No civil court shall have jurisdiction to entertain any suit
or proceeding in respect of any matter which an adjudicating officer appointed under this Act or the
Appellate Tribunal is empowered by or under this Act to determine and no injunction shall be granted by
any court or other authority in respect of any action taken or to be taken in pursuance of any power
conferred by or under this Act.
CHAPTER IX
APPELLATE TRIBUNAL FOR ENERGY CONSERVATION
1[30. Appellate Tribunal.—The Appellate Tribunal established under section 110 of the Electricity
Act, 2003 (36 of 2003) shall, without prejudice to the provisions of the EExcerpt shown. Open the full act in Lexace.