The Ministry of Power has released a draft notification for the Energy Conservation (Compliance Enforcement) Rules, 2025, aimed at strengthening the enforcement of the Energy Conservation Act, 2001. The proposed rules empower the Bureau of Energy Efficiency (BEE) to detect and verify non-compliance, with penalties to be adjudicated by State Commissions. The draft is now open for comments and suggestions from the public till September 4, 2025.
The draft rules are being introduced to streamline the process of imposing penalties for non-compliance with various provisions of the Act, such as those related to energy efficiency norms, standards, and non-fossil fuel consumption.
Key Provisions of the Draft Rules
The rules will apply to a broad range of entities, including those involved in energy-intensive industries, manufacturers and importers of specified appliances and equipment, and designated consumers such as industries and establishments.
The BEE will be responsible for compliance enforcement and will obtain necessary information from the designated entities. It will also be responsible for verifying compliance, submitting reports to the Central Government for certification, and serving notices to entities that fail to comply.
The responsibility for adjudging non-compliance and imposing penalties will lie with an Adjudicating Officer appointed by the State Commission. The specific jurisdiction will depend on the nature of the violation:
- For appliances, equipment, and vehicles, the Adjudicating Officer of the State Commission where the manufacturer’s or importer’s head office is located will be competent.
- For industries and designated consumers, the Adjudicating Officer of the State Commission where the establishment is located will have jurisdiction.
- For non-fossil fuel consumption, jurisdiction will be at the State Commission of the designated consumer’s location or their holding company’s head office.
The rules clarify that in case of any shortfall, the norms and standards provided by the Central Government will apply, not cumulatively with any standards provided by State Electricity Regulatory Commissions.
Penalties collected from non-compliant entities will be credited to the Central Energy Conservation Fund. From this fund, 90% will be transferred to the Consolidated Fund of the State where the violation occurred, and 10% will be retained by the Central Government.
The Ministry of Power has stated that objections and suggestions on the draft rules can be sent to the Deputy Secretary, Energy Conservation, at Shram Shakti Bhawan, New Delhi, or via email at fca.kartik@gov.in.