Energy accounting became mandatory for power distribution companies (indic picture)
As a significant step under the ongoing reforms in the power sector, the Ministry of Power has today made it mandatory for the power distribution companies to get their energy accounting done from time to time. Necessary orders in this regard under the provisions of the Energy Conservation (EC) Act, 2001 were issued by the Bureau of Energy Efficiency (BEE) after the approval of the Ministry of Power.
Accounting to be done within 60 days
The notification issued stipulates that the distribution companies (discoms) get their quarterly energy accounting done within 60 days through any certified energy manager. Along with this, annual energy audit will also have to be done by an independent accredited energy auditor. Both these reports will be published in the public domain. Energy accounting report will provide detailed information about power consumption by different categories of consumers and transmission and distribution losses in different sectors.
Areas of major damage and theft will be identified
This will enable identification of high damage and theft areas and enable further corrective action. This measure will also enable the authorities to fix responsibility for loss and theft. The data received will also enable the Distribution Companies (DISCOMS-Discoms) to take appropriate measures to reduce their power loss (loss). Also, the distribution companies will be able to plan the demand side management (DSM) efforts effectively, apart from upgrading the appropriate infrastructure. This initiative will allow India to contribute more to climate action to meet our Paris Agreement goals.
The objective is to reduce the inefficiencies and losses of the distribution sector.
These rules have been issued within the purview of the Energy Conservation Act, 2001 and their overall objective is to reduce the inefficiencies and losses in the distribution sector so that the distribution companies (DISCOMS-DISCOMS) can move towards economic viability. The Bureau of Energy Efficiency (BEE) has recognized a group of nationally accredited energy auditors and energy managers, who have expertise in energy accounting and preparation of audit reports and who are duly qualified for loss reduction and other technical measures. can give recommendations.
The above rules were already published in April 2021 this year for public comments and thereafter the Ministry of Power has also held detailed discussions with various stakeholders before finalizing these regulations.
In September 2020, through a separate notification, all power distribution companies were notified as designated consumers (DCs) under the Energy Conservation (EC) Act. Due to the potential benefits of energy accounting (auditing) on the entire distribution system and retail supply business, it was also imperative to develop a set of comprehensive guidelines and frameworks that all distribution utilities across India can follow and take action for. mechanism can be created.
Necessary corrections will be made after accounting
Energy accounting refers to the accounting of all types of energy flows at different voltage levels within the distribution range of the network and includes renewable energy generation and energy consumption by open access consumers as well as end consumers. also includes. Energy accounting on a periodic basis followed by an annual energy audit will help identify areas of high loss and theft and then focus efforts on taking corrective action.
The rules issued today provide the much-awaited comprehensive framework for power distribution companies to meet the prerequisites and reporting requirements for Annual Energy Audit and Quarterly Periodic Energy Accounting. The objectives to be achieved through periodic energy accounting are as follows-
- Developing a comprehensive energy accounting system to measure and determine the actual losses in the power distribution system as well as to exclude technical and commercial losses from it.
- Identifying areas of leakage, theft, wastage or inefficient use, thereby paving the way for tackling the current challenges of high transmission and distribution losses.
- Enable and ensure another independent third party energy audit of the distribution system to reach a true and fair position of transmission and distribution losses.
- Enabling distribution utilities to undertake targeted efficiency improvement activities to reduce transmission and distribution losses in priority areas/customer segments.
- Providing a basis for prioritizing energy capital investments and helping budget more accurately to achieve maximum results.
- Identification of overloaded segments of the network for necessary capacity addition.
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