The Arunachal Pradesh State Electricity Regulatory Commission issued an important order on 4th July 2025 in the matter of non-compliance by the Department of Power, Arunachal Pradesh (DoP, AP), with the Bureau of Energy Efficiency (BEE) regulations. The case was filed by BEE under Section 27 of the Energy Conservation Act, 2001, seeking adjudication of a penalty for failure to comply with the provisions of the 2021 regulations related to energy audits and accounting.
BEE, a statutory body under the Ministry of Power, notified regulations in October 2021 mandating all electricity distribution companies (DISCOMs) to conduct quarterly energy accounting and annual energy audits. These requirements are intended to reduce energy losses, improve transparency, and enhance efficiency in the power distribution sector. BEE claimed that despite multiple reminders, emails, and show-cause notices, the Department of Power failed to comply within the prescribed timelines.
The Department of Power, Arunachal Pradesh, in its defense, stated that it did not receive some of the communication due to address issues and administrative challenges, including a lack of manpower and difficulty in data collection from remote divisions. The department admitted delays but clarified that these were not intentional and that they have since established an Energy Audit Cell and submitted all pending reports as of 2024.
The Commission examined all evidence, including the delay period for each quarterly and annual report. The penalties as per law could have exceeded ₹5 crore, but the Commission acknowledged that the Respondent had started complying with the regulations and was now submitting reports regularly. It also noted that the Petitioner failed to consistently use the correct address for communication, contributing to delays.
Given these factors, the Commission decided to impose a notional penalty of ₹1,00,000 on the Department of Power, Arunachal Pradesh, as a warning. The penalty must be paid within three months, failing which interest at 9% per annum will be charged on the delayed payment. The Commission also waived the petition fee in favor of BEE. The case has now been officially closed.
