The Ministry of Power has released the draft Energy Conservation (Compliance Enforcement) Rules, 2025, on August 4, 2025, to strengthen enforcement of the Energy Conservation Act, 2001. The proposed rules focus on promoting the efficient use of energy and ensuring compliance with energy conservation standards across different sectors. The draft invites suggestions and objections from the public within 30 days from the date of its publication.
The rules will apply to three main categories of entities: individuals covered under section 13A, manufacturers or importers specified in section 14, and any other entities falling under the provisions of the Energy Conservation Act. The Bureau of Energy Efficiency (BEE) will be responsible for ensuring compliance with the norms and standards notified by the central government. In case of any shortfall in meeting targets, penalties will be imposed as per the provisions of the Act.
The Bureau will collect necessary information from relevant entities and require periodic reporting on compliance with several sections of the Act, including sections 13A and various clauses of section 14. Verification of compliance will be conducted by the Bureau, which will submit its findings to the central government for further action.
Adjudication of non-compliance cases will be handled by adjudicating officers appointed by the State Electricity Regulatory Commissions. Depending on the type of violation—whether it involves equipment, designated industries, or non-fossil energy consumption—the appropriate state authority will take charge. Penalty amounts collected will be deposited into the Central Energy Conservation Fund, of which 90% will go to the respective state governments and 10% to the central government.
The Bureau or its designated agencies will issue notices to entities that fail to comply, and legal representatives may be authorized to present cases before adjudicating officers. The rules also state that the Bureau will issue further regulations and guidelines to implement these provisions effectively.
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