Centre Floats Draft Energy Conservation (Compliance Enforcement) Rules

The Central Government has released the draft Energy Conservation (Compliance Enforcement) Rules, 2025 for public consultation. These rules aim to strengthen the enforcement framework under the Energy Conservation Act, 2001, by empowering the Bureau of Energy Efficiency (BEE) to detect, verify, assess, and represent cases of non-compliance before adjudicating officers appointed by the respective State Electricity Regulatory Commissions.

The proposed rules will apply to manufacturers, importers, imposters, designated consumers, and other persons or entities governed by the Act, including vehicle manufacturers and importers. They impose a duty on the Bureau to enforce compliance with energy norms and standards prescribed by the Central Government, particularly the Corporate Average Fuel Efficiency (CAFE) norms.

Although CAFE norms were notified in 2017 and subsequently tightened in 2023, enforcement has been limited due to regulatory ambiguities, insufficient testing infrastructure, industry resistance, and technological readiness issues. The draft rules aim to close these gaps by granting the Bureau explicit authority to seek information from regulated entities, verify compliance, and submit verification reports for certification purposes.

Under the draft framework, the Bureau, either directly or through designated agencies, will carry out compliance verification, issue notices, and authorize representatives to appear before adjudicating officers. It is also empowered to frame regulations and issue implementation guidelines.

The draft rules outline the procedure to be followed in cases of underachievement, termed as a “CAFE norms shortfall,” where a vehicle manufacturer’s average fleet fuel efficiency falls below mandated targets. Penalties will be imposed in such instances.

Further, the rules specify the jurisdiction of adjudicating officers based on the type and location of the entities involved. All penalties collected are to be deposited into the Central Energy Conservation Fund, with 10% retained by the Central Government and 90% allocated to the concerned State Government, as per the manner prescribed.