Annual energy audits a must for Discoms, says Power Ministry

Our Bureau New Delhi | Updated on April 19, 2021

The Ministry of Power has made energy audits an annual requirement for electricity distribution companies in a regulation notified on Thursday.

“Every electricity distribution company shall conduct energy audit (accounting) for every financial year within a period of three months from the expiry of relevant financial year. There shall not be a gap of more than twelve months between two energy audits (accounting),” according to the Bureau of Energy Efficiency (Manner and Intervals for Conduct of Energy Audit (Accounting) in Electricity Distribution Companies) Regulations, 2021.

The Discoms were earlier mandated to conduct an external audit once every three years.

The external auditor will now verify the energy flow across the entire distribution chain of the Discom, from feeders and transformers to the consumer.

The audit report shall “identify the areas of energy leakage, wastage or inefficient use” along with “high loss-making areas, for initiating target based corrective action,” the notification said. The report will also provide for monitoring of input energy and consumption patterns t various voltage levels.

In February, the union budget announced a ₹3.05 trillion financial assistance scheme for bleeding Discoms, most of which are controlled by State governments. The scheme will make annual payment transfers contingent upon the Discom improving its financial health.

Published on April 19, 2021

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