Projects, Energy & Infrastructure Monthly Newsletter | January 2023 - Oil, Gas & Electricity

Energy Conservation (Amendment) Act, 2022

The Ministry of Law and Justice (Ministry) on December 20, 2022 issued the Energy Conservation (Amendment) Act, 2022 (Amendment Act). By way of the said amendments the Ministry has amended the Energy Conservation Act, 2001 (Principal Act).

Key aspects

The Amendment Act has substituted the definition of 'energy conservation building codes' with 'energy conservation and sustainable building code' under Clause (p) of Section 14 and by the State Government under Clause (a) of Section 15 of the Amendment Act.
The definition of Building under the Amendment Act includes any structure or erection, or part of a structure or erection constructed after the rules relating to energy conservation, which has a minimum connected load of 100 Kilowatt (kW) or contract demand of 120 Kilovolt Ampere (kVA).
The Energy Conservation and Building Code now applies to buildings used or intended to be used as an office building or for residential purpose.
Section 14 includes 'vehicles' (as defined under Section 2 (28) of the Motor Vehicles Act, 1988) and vessels (includes ships and boats).
The Amendment Act enhances the penalty under Section 26 and provides that if any person fails to comply with the energy consumption standards specified by the Central Government, he shall be liable to a penalty of INR 10 lakh. He shall be liable to an additional penalty which may extend to INR 10,000 for every day during which such failures continue.
In the event of non-compliance related to any vessel, the person in addition to paying a penalty of up to INR 10 lakh shall be liable to pay an additional penalty of up to twice the price of every metric ton of oil equivalent consumed in excess of the prescribed norms.
In event of non-compliance of fuel consumption norms, in addition to the penalty of INR 10 lakh, the violator will be liable to pay a penalty of INR 25,000 per vehicle for non-compliance of norms up to 0.2 litres per 100 kms and fifty thousand rupees per vehicle for non-compliance of norms above 0.2 litres per 100 kms.
Similarly, a penalty up to INR 10 lakh and additional penalty of up to twice the price of every metric ton of oil equivalent in excess to the prescribed norms has been introduced for failure to comply with directions issued for minimum share of consumption of non-fossil sources by designated consumers.
The Amended Act prohibits the use of deceptive names that resemble the name of the Bureau, used to deceive or likely to deceive the public, and makes it punishable with penalty of up to INR 50,000 for first non-compliance, and for every subsequent non-compliance with an additional penalty of up to INR 10,000 per day of such noncompliance.
Failure to provide information to the Bureau, as required, has been made punishable with a penalty of up to INR 50,000 for first such failure and for every subsequent failure with an additional penalty of up to INR 10,000 per day of such failure.
The Adjudicating Authority while deciding the quantum of punishment under Section 26 has to give due regard to the loss caused to a consumer in addition to the two factors under the Act i.e. (a) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default and (b) the repetitive nature of the default.

Notification of the amendment in Charging Infrastructure for Electric Vehicles - the revised consolidated Guidelines & Standards issued by Ministry of Power on January 14, 2022

The Ministry of Power, Government of India (MOP) on November 07, 2022 notified the Amendment in charging Infrastructure for Electric Vehicles (EV) – the revised consolidated Guidelines & Standards issued by Ministry of Power on January 14, 2022. (Amendment).
MOP as made additions in paragraphs 3 and 8 of the revised consolidated Guidelines & Standards dated January 14, 2022 (Revised Guidelines).
The amendment has added sub paragraph (xi) to paragraph 3.1 of the revised guidelines.
- As per the amendment the public charging stations shall have the feature of prepaid collection of service charges with the time of the day rates and discount for solar hours.
- Prior to the amendment, the revised guidelines were silent on the collection of the service charges.
With regard to Service charges at PCS, the amendment provides for a committee under the Central Electricity Authority (CEA) which will periodically recommend the State Government on the ceiling limit of the service charges to be levied.
- This committee will also recommend 'time of the day rate' for service charges as well as the discount to be given for charging solar hours.
- Prior to the amendment, only state governments had the sole discretion to fix the ceiling of the Service Charges to be charged by the PCS/FCS

Central Electricity Regulatory Commission (Terms and Conditions for Dealing in Energy Savings Certificates) (First Amendment) Regulations, 2022

The Central Electricity Regulatory Commission (CERC) has notified the CERC (Terms and Conditions for Dealing in Energy Savings Certificates) (First Amendment) Regulations, 2022 dated December 7, 2022 (First Amendment), and has amended the CERC (Terms and Conditions for Dealing in Energy Savings Certificates) Regulations, 2016 (Principal Regulations) with the objective of developing a market in energy for exchange of transferable and saleable Energy Savings Certificates. This amendment has been made in furtherance of the Energy Conservation (Amendment) Act, 2022.
The Regulations have been amended to include a floor price which shall be the minimum price at which the Energy Savings Certificate shall be traded on the power exchanges. Further, such floor shall be fixed at ten percent of the price of one metric tonne of oil equivalent of energy

Notice regarding competitive bidding mechanism for procurement of power from wind power projects

Bids for a cumulative capacity of about 08 GW will be issued each year from January 01, 2023 onwards up to 2030.
The power generated from capacity established in each of the state sub-bids will be pooled and offered at pooled tariff to all procurers. The pooling of tariff will be as per the notified Electricity (Amendment) Rules, 2022. Each bid will be a composite bid-comprising of state specific sub- bids for each of India's 8 windy states.
The bids will be on a single stage two envelope closed bid basis, with one containing the technical bid, and the other containing the financial bid. The envelope containing the technical bid will be opened first; financial bid of only those bidders who qualify in the technical bid will be opened.
The bids will specify the capacity to be installed, specific to one state. SECI may determine the minimum and maximum bid size based on Wind RPO targets of states. However, the maximum capacity to be established in one year in one State shall not be more than 2 GW.
SECI will issue bids of cumulative capacity of about 8 GW in calendar year 2023 up to 2030. A detailed breakup of this capacity shall be issued by SECI

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