The Author, Angela Arora, is a 4th Year BA.LLB student at University School of Law and Legal Studies, GGSSIPU, New Delhi.
Q1. What is The Energy Conservation Act, 2001? What is its primary objective?
Ans. Energy in all forms is an invaluable resource for any country, which requires proper regulation and management. The Act aims at fostering measures for efficient uses of energy and its conservation, and all matters connected therewith or incidental thereto. It empowers the Central Government, and in some instances, the State governments to specify energy consumption standards, formulate energy conservation ratings, establish consumption norms etc.
Q2. What types of energy resources are covered under this Act?
Ans. Section 2 (h) defines energy. According to the Act, ‘energy’ means any form of energy derived from fossil fuels, nuclear materials, hydro electricity and power derived from renewable sources of energy. Hence it covers both, renewable and non-renewable sources of energy.
Q3. What is the Bureau of Energy Efficiency and where and why was it established?
Ans. The Bureau of Energy Efficiency was established by merging the erstwhile Energy Management Centre, which was set up under the Resolution of the Government of India in 1989, in the erstwhile Ministry of Energy, Department of Power. It was established in 2002 for spearheading the improvements in energy efficiency in the country, through various regulatory and promotional instruments. The primary objective of BEE (headquartered at Delhi), is to reduce intensity in the Indian economy. It is also empowered to establish offices at other places in India (Section 3).
Q4. What are the powers and functions of the Bureau of Energy Efficiency (BEE)?
Ans. Section 13 of the Act elucidates the wide powers and functions of BEE. It has advisory and regulatory functions. It recommends to the Central Government, norms for energy consumption standards; norms for issuing energy savings certificate; notify any user or class of users as ‘designated consumers’ etc. The BEE also-
- Organizes training of personnel and specialists in techniques for efficient use of energy and its conservation;
- Takes measures to create awareness and disseminate information for efficient use of energy;
- Strengthens consultancy services in the field of energy conservation;
- Promotes use of energy efficient processes, equipment etc.;
- Promotes innovative financing of energy efficient projects;
- Promotes research and development in the field of energy conservation.
Q5. How is the BEE financed?
Ans. Chapter VII (Section 19 to 25) lays down the provisions of Finance, Accounts and Audit of the BEE. The Central Government gives grants and loans to the Bureau and State governments to defray their expenses. Section 20 directs the Central Government to constitute the Central Energy Conservation Fund. Any grants and loans made to the Bureau, all the fees received, all sums of money received by the Bureau are collected here, and applied for paying allowances and salaries to the employees of the Bureau and cover other incidental costs. The Bureau may also borrow money from any source it deems fit, with the consent of the Central Government.
Q6. What are the powers of Central Government elucidated in the Act?
Ans. Section 14 provides for powers of the Central Government for energy conservation and optimization of energy resources in the country. The Central Government-
- Specifies norms for processes and energy consumption standards for any appliance which consumes, generates or transmits energy;
- Prohibits the manufacture, sale or purchase of equipment or appliances;
- Alter the list of Energy Intensive Industries as specified in the Schedule;
- Establish and prescribe energy consumption norms and standards for different designated consumers;
- Prescribe energy conservation building codes for efficient use of energy and its conservation in the building and building complex.
The Central Government has wide-ranging powers to ensure conservation of energy and optimal usage of resources.
Q7. What are the powers of the State government elucidated in the Act?
Ans. The State government, after consulting the Bureau, may amend prescribed rules and codes in accordance with the special climatic and regional requirements. It can designate any agency to coordinate, regulate and enforce provisions of the Act within the State; take measures to create necessary awareness and disseminate information etc.
The State government shall also constitute the State Energy Conservation Fund for the purposes of promotion of efficient use of energy and its conservation within the State.
Section 17- Power of Inspection: The designated agency may appoint as many inspecting officers as required for the purpose of ensuring compliance with energy consumption standards and other function as may be assigned to them.
Q8. What is the ‘Power to Adjudicate’ in the Act?
Ans. The Power to Adjudicate is provided in Section 27 of the Act. If any person fails to comply with any provision of this Act, he shall be liable to pay a penalty (Section 26), and in case of continuing failure, an additional penalty. For this purpose, the State Commission shall appoint any of its members to be an adjudicating officer for holding inquiry in prescribed manner. The adjudicating officer shall have the power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case, to give any relevant evidence.
Q9. Are the actions of the Adjudicating Officer appealable?
Ans. Yes. The Appellate Tribunal established under Section 110 of the Electricity Act, serves as the Appellate Tribunal for the purposes of this Act, and hears appeals against the orders of the adjudicating officers or any other authority under this Act. No civil court has the jurisdiction to entertain any proceeding under this Act.
Section 45: Any person aggrieved by any order of the Appellate Tribunal may file an appeal to the Supreme Court within sixty days from the date of communication of the decision or order of the Appellate Tribunal.
Q10. Which industries are listed as ‘Energy Intensive Industries’ in the Schedule to the Act?
Ans. The following industries are included in the Schedule of the Act as ‘Energy Intensive Industries’-
Aluminum, Fertilizers, Iron and Steel, Cement, Pulp and Paper, Chlor Alkali, Sugar, Textile, Chemicals, Railways, Port Trust, Transport Sector, Petrochemicals, Gas Crackers, Petroleum Refineries, Thermal power stations, Electricity transmission companies and Commercial buildings or establishments.
