Perform, Achieve and Trade (PAT) Scheme

Energy Conservation Rules, 2012

(PAT Rules)

1
Energy Conservation Rules, 2012

In exercise of powers conferred under the Energy Conservation Act, 2001 (52 of
2001), the Central Government has made the following rules, namely:-
EC Rules, 2012
“Energy Conservation (Energy Consumption Norms and Standards for Designated
Consumers, Form, Time within which, and Manner of Preparation and
Implementation of Scheme, Procedure for Issue of Energy Savings Certificate and
Value of Per Metric Tonne of Oil Equivalent of Energy Consumed) Rule, 2012.

EC Amendment Rules, 2016

Energy ConservationRules,
Energy Conservation Rules, 2012
2012
These Rules define
 The procedure for establishment of energy consumption norms and standards and specify such
norms and standards for Designated Consumers (Rule 3 & 4)
 Scheme for preparation and implementation of efficient use of energy and its conservation. (Rule 5)
 Assessment of Performance by the Designated Consumers with reference to the energy
Consumption Norms and Standards specified for them (Rule 6)
 Procedure for Assessment of performance through Monitoring & Verification (M&V) and Check
verification by Empaneled Accredited Energy Auditor (Rule 7 & 8)
 The Procedure regarding compliance with energy consumption Norms and Standards and for issue of
ESCerts . (Rule 9, 11, 12 & 13).
 Role and responsibilities of various stake holders (Rule 10 & 15)
 Establishment of new Baseline for the next PAT Cycle (Rule 14).
 The procedure for notifying the price of one tonne of oil equivalent (toe) for purposes of penalty
(Rule 16).
 The reporting and verification format for compliance with Energy Consumption Norms and Standards
(Form A, Form B, Form C and Form D).
 The procedure and formulae for Normalization (Schedule I & II)
 The timelines for various activities under Perform, Achieve and Trade
Establishment of energy consumption norms and
standards. (Rule 3) - Role of BEE

Establishment of Energy
Consumption of Norms
and Standards

Where Mandatory Energy Audit hasn’t

Where Mandatory Energy been completed
Audit has been Completed

(i) Avg. Rate of reduction in SEC

across all the DC sectors
determined on avg. of last 3 yrs data
Based on timely submission
of Form 2 & Form 3 as per
(i) Policy objectives of keeping the
EC Rule, 2008
target a few % point above the avg.
rate of reduction keeping in view the
incentive provided through ESCerts
Procedure for establishment of Energy Consumption
Norms & Standards. (Rule 4) - Role of BEE
 Bureau shall set up a technical Committee;
 Technical Committee set up by BEE shall do the followings:
 Verify the data of the previous 3 years submitted by the DCs under rules 2007.
 Calculate net energy input to the plant boundary (taking into account the various
factors)
 Calculate annual SEC in the baseline year and projected SEC in the Target year on a
gate-to-gate basis.
 Take in to consideration the effects on Capacity Utilisation or Plant load factor or
average energy consumption in the target year on account of any of the following
factors, namely:
 Natural Disaster
 Rioting or social unrest
 Major change in Govt. policy including environmental standard
 Impact of market &Shortage of raw material or sales) in any of previous three years.
 The said Technical Committee shall prepare a report and Submit it to Bureau
Procedure for establishment of Energy Consumption
Norms & Standards. (Rule 4) - Role of BEE & MOP
Role of Bureau
 The Bureau shall examine the report and finalise its reports containing its
recommendations
 The Bureau shall submit the report to the Central Govt.

Role of Central Govt.

The Central Govt. after considering the said report shall by notification :

 Establish and specify the energy consumption norms & standards for
every DC’s plant under clause(g) of section 14;

 Give direction to all DCs for compliance with the energy consumption
norms and standards under clause(n) of section 14 and inform the
Bureau & all the SDAs
Preparation of scheme for implementation of efficient use of
energy and its conservation (Rule 5) – Role of DCs

Every Designated Consumer, within three months of the issue of notification under
sub-rule (6) of rule 4 shall submit a scheme to State designated agency with a copy
to Bureau, which may include: -

 Action Plan containing inter- alia, a brief description of identified energy saving
measures to comply energy consumption norms and standards by the target year;

 The estimated cost of each identified energy saving measures;

 Implementation plan to Achieve Energy Consumption Norms and Standards;

Procedure for Monitoring and Verification (Rule 7) –
Role of DCs
 The Designated consumer in consultation with empaneled accredited energy
auditor, shall put in place transparent, independent and credible Monitoring
and Verification (M&V) arrangement for Energy Consumption and Production
based on the Bureau of Energy Efficiency (Manner and Intervals of Time for
Conduct of Energy Audit) Regulations, 2010 for compliance with the Energy
Consumption Norms and Standards, and such arrangement shall include-
 Preparation and Maintenance of Quarterly Data / Yearly Data reports /End of Cycle
Data Reports by Designated Consumers -

 On the performance of plant and production process;

 Internal Field Audit of Plant and Production Process;
 On outcomes of Internal Field Audit of Plant and Production Process;
 A Year wise report on Production achieved, Energy Consumed and SEC consumption and
reduction achieved and measures adopted for energy conservation and quantity of savings
achieved;
Procedure for Monitoring and Verification (Rule 7) –
Role of DCs and EmAEA Firm

 All the activities under taken by the designated consumers under these rules shall
be scrutinized by the empaneled accredited energy auditor for the purpose of
verification report, and

 the DC shall furnish the full and complete data, Provide necessary documents
and others facilities required by EmAEA for the purpose of performing the
function of verification under these rules.
Empanelment of EmAEA Firm for M&V and Check-Verification
(Rule 9) – Role of BEE
 A firm registered under the Indian Partnership Act, 1932 (9 of 1932) or a company
incorporated under Companies Act, 1956 (1 of 1956) or any other legal entity
competent to sue or to be sued or enter into contract shall be entitled to undertake
verification and check – verification, if it
 Has at least one Accredited Energy Auditor (AEA)
 Has at least three Energy Auditors;
 Has adequate expertise of field studies
 Has a minimum turnover of Ten Lakh per annum in at least one of previous three years;
 Bureau shall invite application form the Firms, Companies and other legal entities
to undertake the work of Verification and Check – Verification;
 Application so received shall be scrutinized in accordance with the provisions of
this rules and a panel of eligible applicant shall be prepared and displayed on
Bureau’s website;
 The selected applicant shall be issued a certificates of Empanelment;
 A unit registration number shall be issued to the EmAEA firm;
Obligation of Empaneled AEA Firm (Rule 10) – Role of EmAEA

 For the work of verification or check-verification, the AEA shall constitute a team
comprising a team head and other members including experts:

Provided that a person who was a in the employment of a DC within previous four years,
shall not be eligible to perform such work

Provided further that any person or firm or company or other legal entity, who was involve
in undertaking energy audit in any of DC within previous four years, shall not be eligible
to perform the work of verification and check-verification of such DC.

 In assessing the compliance with the energy consumption norms and standards and
issue of ESCerts, AEA shall follow the provisions of Act, rules and regulations.
 Any deviation from rules and required professional conduct for verification or
check-verification by accredited energy auditor shall attract action under the
relevant provisions of the Bureau of Energy Efficiency (Qualifications for Accredited
Energy Auditors and Maintenance of their List) Regulations, 2010.”.
Assessment of Performance (Rule 6) – Role of DCs

After Completion of Target Year: Every DC within four months of the conclusion of
the target year from the baseline year shall submit to the SDA with a copy to the
Bureau, the performance assessment document (PAD) in Form ‘A’, duly verified
together with certificate in Form ‘B’ given by the empanelled Accredited Energy
Auditor (AEA) and accompanied by the following Documents:-

 Copy of unit number of registration

 Proof of timely submission of reports in Form 1 under EC Rule, 2007
 Proof of timely submission of reports in Form 1, Form 2 and Form 3 under EC Rule,
2008
 Details of Energy saving measures implemented for compliance with the energy
conservation norms and standards
 Name and particulars of Energy Manager, his date of appointment and details of his
duties
Installation of Auto Sampler for Coal testing (Rule 6) –
Role of DCs and SDA
 The DCs shall make the necessary arrangement for taking “as fired basis” sample
from Auto Sampler installed at solid fuel feeding points;

 DCs shall ensure that Coal samples are picked up from auto sampler at least once
in a month and get tested at internal and external NABL lab for GCV and
Proximate analysis;

 DCs shall ensure that Coal samples are picked up from auto sampler at least once
in a quarter and get tested at external NABL lab for GCV and Ultimate analysis;

 SDA shall ensure that the coal sample are picked at random through an
independent Agency by it from the auto sampler and get the same tested at the
internal lab of DC and NABL lab for GCV and Proximate analysis;
Recommendation for issue of ESCerts (Rule 11) – Role of BEE
 The Bureau on satisfying itself about the correctness of verification report, and check-
verification report, wherever sought by it, send its recommendation to the Central
Government, based on the claim raised by the designated consumer in Form ‘A’, within two
months from the last date of submission of said Form ‘A’ by the concerned state designated
agency, for issuance of energy savings certificates.

 The exact numbes of ESCerts to be issued to the DC and the entitlement for such ESCerts
to be Purchased shall be determined by following formula:
 for Thermal Power Plant Sector
Number of Escerts = ( Heat Rate Notified for the target year – heat rate achieved in
the target year) X Notified Generation in Baseline Year/10

 for other Sectors

Number of Escerts = ( SEC Notified for the target year – SEC achieved in the target
year) X Notified Production in Baseline Year
Procedure for issue of ESCerts (Rule 12) – Role of BEE
 Central Govt. after receiving recommendation from Bureau issue ESCerts of desired
value to DC within 45 days.

 ESCerts shall only be in electronic form

 1 ESCerts= 1 tonne of Oil Equivalent (toe) = 10968 INR

 The DC who has been issued energy savings certificates may sell them through the
power exchange.

 ESCerts issued in current cycle shall remain valid till compliance period of next cycle.

 ESCerts purchased by DC for compliance shall after their submission to Bureau stand
expire.
Compliance of energy consumption norms and standards (Rule
13) – Role of DCs
 The designated consumer for the purpose of achieving the compliance with the energy
consumption norms and standards during the target year, in the relevant cycle shall take
the following action and after completing the said action, furnish the status of compliance to
the concerned state designated agency with a copy to the Bureau in Form ‘D’ by the end
of one month from the completion of trading of ESCerts of respective cycle as may
be specified by CERC.

(a) by implementation of energy conservation and energy efficiency improvement

measures or;

(b) where the measures implemented in terms of clause (a) are found inadequate for
achieving compliance with the energy consumption norms and standards, the
designated consumer shall purchase the energy savings certificates equivalent in full
satisfaction of the shortfall in the energy consumption norms and standards worked out
in terms of metric ton of oil equivalent.
Establishment of new baseline for next Cycle (Rule 14)

The Energy Consumption Norms and Standards achieved by the DC on

completion of the target year, as mentioned in the compliance report in Form-
‘D’ shall be the baseline for the establishment of new plant specific energy
consumption (SEC) norms and standards for DCs for the next cycle.
Specification of Value of Energy (Rule 16)
 List of Various Forms to be submitted by DC and EmAEA

 Forms submitted by DC:

 Form I and Sector Specific Pro-Forma
 Performance Assessment Documents (Form A)
 Compliance of Energy Consumption Norms and Standard Document (Form D)

 Forms to be submitted by EmAEA

 Certificate of Verification (Form B)
 Certificate of Check-Verification (Form C)
 Form I and Sector Specific Pro-Forma
Sector No of Pro-forma Name of Pro-Forma for Sub-Sector
Sub-Sector

Aluminium Smelter & Cold Sheet

1 2 Sa1, Sa2
Cement Cement
2 1 Sb
Chlor- Alkali Chlor- Alkali
3 1 Sc
Fertilizer 1 Sd Fertilizer
4
Iron & Steel Integrated steel & Sponge Iron
5 2 Se1, Se2
Paper & Pulp 1 Sf Paper & Pulp
6
Textile Composite, Fiber, Spinning & Processing
7 4 Sg1, Sg2, Sg3, Sg4
Thermal Power Plant Thermal Power Plant
8 1 Sh
Railways General format for data collection of these three Sectors are available on BEE website
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https://beeindia.gov.in/content/pat-performa
DISCOMM
10 The sector specific pro-forma for these sectors are under finalisation.
Petroleum Refinery
11
Total
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 Timelines and Activities
Activity Time Line Description Tentative Activity Where
Dates for by
PAT Cycle III
Action plan 3 Months Within 3 month from Notification 30 June DC SDA/BEE
submission 2017
Form 1 and Pro- 3 Months Yearly submission of Form 1 within 30 June DC SDA/BEE
forma submission 3 months from last financial year (Every Year)
Form A, Form B 4 Months Within 4 month from conclusion of 31st July DC SDA/BEE
along with other target year 2020
documents
Submission of 45 Days Within 45 days of the last date of 15th Sept SDA BEE
comments on Form submission of Form A 2020
A, Form B from SDA
comments
Recommendation Two Within two months from the date 15th Nov BEE MoP
of ESCerts to MoP, Months of the receipt of the comments 2020
GOI from SDA
Issuance of ESCerts 45 Days Within 45 days from the date of 31st Dec MoP
by MoP receipt of recommendation of 2020
Escerts from BEE
Form D Submission One Month After 1 month from the date of DC SDA/BEE
completion of Trading of ESCerts
Forms
 Performance Assessment Documents (Form A)
To be filled by DCs
1. Name of designated consumer

2. Registration number

3. Sector

4. Sub-sector

5. Accredited energy auditor

Name
Registration number

6. List of documents submitted

a. Baseline data (three years) Submitted/Not submitted Date of submission
b. Form I () Submitted/Not submitted Date of submission

Specify the year in the bracket

c. Form I ( ) Submitted/Not submitted Date of submission

Specify the year in the bracket

d. Form I ( ) Submitted/Not submitted Date of submission

Specify the year in the bracket

e. Form II Submitted/Not submitted Date of submission

f. Form III Submitted/Not submitted Date of submission

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 Performance Assessment Documents (Form A)
7 Target Year Notified target specific energy Energy savings certificates Revised target specific energy
consumption for the cycle issued consumption for the cycle
toe/ton of product or Net Nos toe/ton of product or Net Kcal/kWh
Kcal/kWh
a. Mention the year -

( )
b. Mention the year

( )
c. Mention the year -

( )

8. Specific energy consumption

a. Specific energy consumption (baseline) toe/ton or Net kcal/kWh

b. Production (baseline) ton or Million kWh
c. Revised target SEC (from 7.b) toe/ton or Net kcal/kWh
d. Target after normalisation, if any toe/ton or Net kcal/kWh
e. Achieved specific energy consumption toe/ton or Net kcal/kWh
f. Energy savings certificates nos

9. Energy Efficiency Project implemented during current cycle

Project Year of Implementation Annual Energy Annual Energy Energy tariff Investment
consumption consumption
(before) (after)

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 Form B of Verification (Form B)
Certificate
Form B

(See rule 5)

CERTIFICATE OF VERIFICATION

I/W e __________________the accredited energy auditor, have undertaken a

thorough independent evaluation of the activities undertaken by M/s. _________________,a
designated consumer for compliance with the energy consumption norms and standards
specified under the Government of India Ministry of Power notification
number_______________, dated the ___________during the target year compared to the
baseline year and consequent entitlement or requirement of energy saving s certificates and
certify that-

(a) the verification of the data collection in relation to energy consumed and
specific energy consumption per unit of production in the baseline year and in
the target year in Form 1under Rules 2007 or Rules 2008, has been carried
out diligently and truthfully;

(b) the verification of the identified energy efficiency measures, and the progress
of their implementation given in Form II and Form III under Rules 2008 has
been carried out diligently and truthfully;

(c) the verification of the compliance with energy consumption norms and
standards during the target year has been carried out diligently and truthfully;

(d) the verification of the total amount of energy saved, year -wise, after the
baseline year and until target year or otherwise and request made by the
designated consumer, the entitlement of _________ (Nos) energy savings
certificate (s) required to be issued or purchased by him have been carried
out diligently and truthfully;

(e) all reasonable professional skill ,care, and diligence have been taken in
verifying the various verification activities, findings and conclusions,
documents, reports, preparing the documents including the performance
assessment document in Form ‘A’ and verification report and the contents
thereof are a true representation of the facts .

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 Check Verification Form: Form-C
Form C
(See rule 7)
Certificate of Check – Verification

I/We __________________the accredited energy auditor, have

undertaken a thorough independent evaluation of the activities undertaken by M/s.
_________________,a designated consumer for compliance to the energy consumption
norms and standards specified under the Government of India, Ministry of Power
notification numbers ___________________, dated the ____________during the target
year compared to the baseline year and consequent entitlement or requirement of
energy savings certificates, mentioned in the Performance Assessment Document in
Form ‘A’ and compliance of energy consumption norms and standard document in Form
‘D’ and certify that-

(a) the check-verification of the data collection in relation to energy consumed

and specific energy consumption per unit of production in the baseline
year and in the target year in Form 1under Rules 2007 or Rules 2008, has
been carried out diligently and truthfully;

(b) the check-verification of the identified energy efficiency measures, and the
progress of their implementation given in Form II and Form III under Rules
2008 has been carried out diligently and truthfully;

(c) the check-verification of the compliance with energy consumption norms

and standards during the target year has been carried out diligently and
truthfully;

(d) the check-verification of the total amount of energy saved, year-wise, after
the baseline year and until target year or otherwise and request made by
the designated consumer, the entitlement of _________ (Nos) energy
savings certificate (s) required to be issued or purchased by him have
been carried out diligently and truthfully;

(e) all reasonable professional skill, care, and diligence have been taken in
check-verifying the various verification activities, findings and conclusions,
documents, reports, preparing the documents including the information
given in the Performance Assessment Document in Form ‘A’ and
verification report submitted by the accredited energy auditor appointed by
the designated consumer ………………………… for verification and the
contents thereof are a true representation of the facts.

Signature:
Name of accredited energy auditor for check-verification
Designation: SEAL
Compliance of Energy Consumption Norms and Standard
Document (Form D)
1. Name of designated consumer

2. Registration number

3. Sector

4. Sub-sector

5. List of documents submitted

a. Performance Assessment Submitted/Not Submitted Date of Submission
Document (Form ‘A’)

6. Compliance
a. Energy Savings Certificates Issued/Recommended for
purchase
b. Energy Savings Certificates If recommended for
submitted for compliance purchase
c. Balance Energy Savings Certificates Nos
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 Mandatory Energy Audit
In exercise of the powers conferred by clauses (i) and (k) of Section 14 of the Energy
Conservation Act, 2001 (52 of 2001), the Central Government, in consultation with the Bureau
of Energy Efficiency hereby direct, that every designated consumer shall,—

a) get energy audit conducted by an accredited energy auditor, in accordance with the Bureau
of Energy Efficiency (Manner and Intervals of Time for Conduct of Energy Audit) Regulations,
2010; And

(b) furnish to the concerned designated agency, details of information on energy consumed and
details of the action taken on the recommendations of accredited energy auditor, in accordance
with the Energy Conservation (Form and Manner and Time for Furnishing Information With
Regard to Energy Consumed and Action Taken on Recommendations of Accredited Energy
Auditor) Rules, 2008.
 Mandatory Energy Audit

Interval of Time for conduct of Energy Audit:

(1) Every designated consumer shall have its first energy audit conducted, by an
accredited energy auditor within 18 months of the notification issued by the
Central Government under clause (i) of section 14 of the Act.

(2) The interval of time for conduct and completion of subsequent energy audits shall
be three years with effect from the date of submission of the previous energy audit
report by the accredited energy auditor to the management of the designated
consumer.
 Penalties and Adjudication

As per Section 26 of EC Act,

 If any DC fails to comply with the timelines of M&V
procedure, he shall be liable for a penalty of Rs. 10 lakh, in
addition to Rs. 10,000 per day

 If any DC fails to comply with the provisions, he shall be

liable to a penalty of Rs. 10 lakh rupees and, in the case of
continuing failure, with an additional penalty of the price
of every metric ton of oil equivalent of energy

 Any amount payable under this section, if not paid, may be

recovered as if it were an arrear of land revenue.
 Mandatory requirement to be fulfilled by DC
 EC Act schedule provides list of 15 energy intensive industries and other establishments
to be notified as designated consumers (DC).
 DCs to appoint or designate energy managers who shall be in charge of activities for
efficient use of energy and its conservation (clause 14(l)).
. Note: The minimum qualification of energy manager to be designated or appointed under clause 14(l) is the passing of
certification examination, conducted by Bureau of Energy Efficiency

 The following information to be provided for energy manager:

 Name of the energy manager
 Registration number (EA/EM No.)
 Complete postal office address
 Telephone and Mobile number
 Email address)
 The information with regard to energy consumed (clause 14(a)) in Form 1 and Pro-forma
 Get energy audits conducted by accredited energy auditors
 Implement techno-economic viable recommendations
 Comply with norms of specific energy consumption
 Submit report on steps taken
Thank You

Contact No: 9873647671

E-mail ID: akyadav@beenet.in