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Government makes energy accounting mandatory for distribution companies

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Power ministry has made energy accounting mandatory for distribution companies

The Ministry of Power has made energy accounting mandatory for distribution companies to reduce power losses and rules have been issued by the Bureau of Energy Efficiency (BEE) in this regard.

The measure has been announced as part of the government’s power reforms and energy accounting will be done by distribution companies on a quarterly basis, the power ministry said in a statement.

The ministry has said that energy accounting will have to be done through a certified energy manager within 60 days. In addition, there will also be an annual energy audit by an independent accredited energy auditor and both these reports will be placed in the public domain.

These reports will give details of energy consumption by different categories of consumers as well as transmission and distribution losses in different regions.

It will identify areas of high loss and theft and ensure corrective action.

The statement issued by the Ministry of Power said that the officials will be held responsible for the loss and theft of electricity from their areas and this exercise will also help the distribution companies to reduce their losses.

These regulations have been issued within the purview of the Energy Conservation Act, 2001, the overall objective of which is to reduce the inefficiencies and losses of the distribution sector, thus making the distribution companies financially viable.

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