Power Ministry issues Draft Notification Energy Conservation (Compliance Enforcement) Rules 2025

The Ministry of Power has published draft rules to implement a compliance mechanism under the Energy Conservation Act, 2001. Released on 5 August 2025, the Energy Conservation (Compliance Enforcement) Rules, 2025 outline enforcement roles, penalties, and reporting duties for entities under the Act.

The Bureau of Energy Efficiency (BEE) will be responsible for identifying and verifying cases of non-compliance. Covered entities include manufacturers, importers, and designated consumers as defined in Sections 13A, 14, and 15 of the Act.

The draft mandates regular compliance reporting by these entities. Reports must include adherence to specified clauses of Section 14, including standards for appliances, equipment, and non-fossil fuel consumption.

Verification reports will be submitted by the BEE to the Central Government. Enforcement will follow central norms under Section 14(x) and will not be compounded with state-level standards.

Adjudicating Officers appointed by State Electricity Regulatory Commissions will handle penalty proceedings. Jurisdiction will depend on the location or type of entity:

• For manufacturers and importers, it will be the head office
  
  
• For designated industries, the plant location
  
  
• For non-fossil obligations, either the plant or the holding company’s head office

Penalties will be deposited into the Central Energy Conservation Fund. Ninety per cent of the collected amount will be allocated to State Governments. Distribution will be based on the location of the entity or sales volume.

The BEE or its authorised agency will oversee compliance checks, issue notices, and represent cases before adjudicating officers.

The draft rules are open for public feedback for 30 days. Final implementation will follow the gazette notification.