National Energy Efficiency and Conservation Act, 2016

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THE NATIONAL ENERGY EFFICIENCY AND CONSERVATION 
ACT, 2016 
 
 
 
 
    CONTENTS 
     ___________ 
 
  
1 Short title and commencement. 
2 Definitions. 
3 Establishment of the Board 
4 Functions and powers of the Board. 
5. Organization of the Board. 
6.  Establishment of the Authority. 
7.  Powers and functions of Authority. 
8.  Indemnity. 
9.  Fund of the Authority. 
10.  Powers and functions of the Federal Government to facilitate and enforce efficient use of 
energy and its conservation. 
11.  Powers of the Federal Government to issue energy saving certificate. 
12.  Powers of the Federal Government to specify value of energy. 
13.  Powers and functions of Provincial Governments to facilitate and enforce efficient use of 
energy and its conservation. 
14.  Powers of Provincial Government to make rules. 
15.  Powers of inspection. 
16.  Powers to issue directions. 
17. Procedure for conducting inquiry, investigation and energy audit. 
18.  Imposition of fine. 
19.  Energy Conservation Tribunals. 
   

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20.  Power to make rules. 
21.  Power to make regulations. 
22.  Delegation of powers. 
23.  Power to exempt. 
24.  Act not to be derogatory. 
25.  Transitional. 
26.  Removal of difficulty. 
27. Savings. 
28. Repeal. 
 
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THE NATIONAL ENERGY EFFICIENCY AND CONSERVATION 
ACT, 2016 
 
ACT No. XXX OF 2016 
 
[28th June, 2016] 
 
An Act to provide far the establishment of institutions and enunciation of mechanisms and 
procedures so as to provide for effective conservation and efficient use of energy 
 
WHEREAS the conservation and efficient use of energy is pivotal for the development of  
Pakistan; 
 
AND WHEREAS it is expedient and imperative to establish institutions and stipulate 
mechanisms and procedures for effective conservation and efficient use of energy in Pakistan and for 
matters connected therewith and incidental thereto; 
 
It is hereby enacted as follows:— 
 
1. Short title, extent and commencement.—(1) This Act may be called the National Energy 
Efficiency and Conservation Act, 2016. 
 
(2) It extends to the whole of Pakistan.  
 
(3) It shall come into force at once. 
 
2. Definitions.— In this Act, unless there is anything repugnant in the subject or context, — 
(i)  “accredited laboratory” means a laboratory designated by the Authority or the 
Provincial Government and duly accredited by the National Accreditation 
Body to carry out such procedures and tests as are necessary for furtherance of 
the purposes of this Act; 
(ii)  “adverse energy and environment effect” means energy wastage and discharge 
of air pollutants due to energy waste practices; 
(iii)  “agriculture and livestock sector ” means activities or practices related to soil 
management. land preparation (tillage, plowing etc), harvesting, threshing, 
mechanized livestock and agriculture farming, livestock and agriculture farm 
irrigation and drainage, livestock and agriculture farm management, livestock 
and agriculture farm produce transportation, agro­chemicals management, 
livestock, plant and agriculture food processing, preservation and value 
addition, bio­mass recycling, rangeland and forest management, livestock and 
poultry management, post harvest output management; 
(iv)  “Authority” means the National Energy Efficiency and Conservation 
Authority established under section 6; 
(v)  “Board” means the National Energy Efficiency and Conservation Board 
established under section 3; 
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(vi)  “buildings sector” means all buildings including private domestic household, 
commercial, industrial, public and community buildings; 
(vii)  “certified energy auditor” means any person to be certified and designated by 
the Authority for carrying out ener gy audit in accordance with the provisions 
of this Act; 
(viii)  “designated agency” means an agency designated as such by the Board or a 
Provincial Government for the purpose of this Act; 
(ix)  “designated consumer” means a consumer designated as such by the Authority 
for the purpose of this Act; 
(x)  “efficiency” means the ratio of energy output to energy input in respect of 
energy consuming equipment, appliances or systems; 
(xi)  “ENERCON” means the National Energy Conservation Centre 
(xii)  “energy” means conventional and non­conventional, alternate sources of 
energy including petroleum, coal, natural gas, liquefied petroleum gas or 
compressed natural gas and electrical energy and may also include such other 
new or renewable forms of energy as the Bo ard may, by notification in the 
official Gazette, specify; 
(xiii)  “energy audit” means an examination of any energy consuming project about 
the way the energy is generated, transmitted, distributed or used there and 
identification of areas where energy wa ste can occur for improving energy 
efficiency and where scope for improving energy use efficiency may be 
possible; 
(xiv)  “energy conservation” means reduction in energy consumption by minimizing 
waste, or curtailment of energy use or improving generation,  transmission, 
distribution or end use energy efficiency to avoid waste, creating additional 
energy supply at source and effecting a reduction of undesirable emissions to 
the atmosphere or air due to better fuel combustion; 
(xv)  “Energy Conservation Tribunal” means the Tribunal constituted under Section
 19; 
(xvi) “energy use assessment ” means a comprehensive review and analysis to 
determine the appropriateness of energy use in any energy consuming project; 
(xvii)  “energy waste” means amount of energy that remains unused or discarded due 
to incomplete burning or combustion or due to use of inefficient energy 
consuming equipment, appliance or due to process or inefficient operation, 
maintenance and management of a system; 
(xviii)  “Government” means the Fede ral Government or, as the case may be, a 
Provincial Government; 
(xix)  “industrial sector” means small scale, medium scale and large scale industry 
involving manufacturing, making, formulating, altering, repairing, finishing, 
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packing or otherwise treating any article or substance with a view to its use, 
sale, transport, delivery or disposal; 
(xx)  “Managing Director” means the Managing Director of the Authority; 
(xxi)  “National Accreditation Body ” means the Pakistan Accreditation Council or 
such body as may be notified for the purpose by the Government; 
(xxii)  “National Standards Body” means the Pakistan Standards and Quality Control 
Authority or such other body as may be notified for the purpose by the 
Government: 
(xxiii) “person” means a natural or legal person, firm, association, partnership, 
society, group, company, corporation, co­operative society, Government 
agency, public body, non governmental organization, community based 
organization, village organization, local council o r local authority and, in the 
case of a vehicle, the owner or other person having for the time being the 
charge or control of the said vehicle; 
(xxiv) “pollution” means contamination of air, land or water due to discharge of 
pollutants as a consequence of incomplete or inefficient combustion of energy 
resources that alters unfavorably the chemical, physical, biological, radiation, 
thermal, radiological or aesthetic properties of air, water or atmosphere; 
(xxv) “power sector” means generation, transmission and distribution system of 
electricity; 
(xxvi)  “prescribed” means prescribed by rules or, as the case may be, regulations 
made under this Act; 
(xxvii) “project” means any activity, scheme, proposal or undertaking in any sector of 
economy involving use of energy; 
 
(xxviii)“regulations” means the regulations made under this Act; 
 
(xxix) “rules” means the rules made under this Act; 
 
(xxx) “sectors of economy ” include but not limited to power sector, industrial 
sector, transpor t sector, agriculture and livestock sector and the buildings 
sector; 
(xxxi) “standards” means numeric values for optimum level of energy units required 
to produce a unit of output or desirable energy efficiency levels assigned to 
any process, object, equipment or appliance either for general applicability or 
for specific application established under the provisions of this Act; and 
(xxxii) “transport sector ” means road transport, railways, aviation and such other 
means of transportation as the Board may determine. 
3. Establishment of the Board .—(1) As soon as may be after the commencement of this 
Act, the Federal Government shall, by notification in the official Gazette, establish a Board to be 
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known as the Pakistan Energy Efficiency and Conservation Board consisting of  the following 
members, namely:— 
 
(a) Federal Minister of the Division to which subject-matter 
of this Act stands allocated 
Chairman 
(b) Federal Secretary of the Division to which subject matter of this 
Act stands allocated 
Vice 
Chairman 
(c) Federal Secretary, Ministry of Finance Member 
(d) Federal Secretary, Ministry of Planning and Development Member 
(e) Federal Secretary of the Division to which subject matter of 
Petroleum and Natural Resources stands allocated 
Member 
(f) Federal Secretary of the Division to which subject matter of 
Science and Technology stands allocated 
Member 
(g) Federal Secretary of the Division to which subject matter of 
Industries stands allocated 
Member 
(h) Federal Secretary of the Division to which subject matter of 
Housing and Works stands allocated 
Member 
(i) Federal Secretary of the Division to which subject matter of 
Climate stands allocated 
Member 
(j) Secretary of the Designated Department, Government of the 
Punjab 
Member 
(k) Secretary of the Designated Department, Government of Sindh Member 
(l) Secretary of the Designated Department, Government of Khyber 
Pakhtunkhwa 
Member 
(m) Secretary of the Designated Department, Government of 
Balochistan 
Member 
(n) Chairman, Oil and Gas Regulatory Authority Member 
(o) Chairman, National Electric Power Regulatory Authority Member 
(p) one nominee from Chambers of Commerce and Industry Member 
(q) one person from Agriculture sector nominated by the Federal 
Government 
Member 
(r) Managing Director of the Authority Member 
 (s) Five persons of known integrity and competence from private 
sector of which three would be full time paid. These Members 
shall have expertise in different sectors defined in the Act, 
including Agriculture and Livestock 
Members 
 
  
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  (2) A member of the Board other than an ex­officio member, shall hold office for a period of 
three years from the date of his appointment and shall be eligible for reappointment but for not more 
than two terms. 
(3) The headquarters of the Board shall b e at Islamabad, but it may hold its meetings 
anywhere in Pakistan as and when deemed necessary. 
(4) The Board shall hold not less than three meeting during a year and may co­opt members 
for particular meetings or generally as may be necessary. 
(5) A meetin g of the Board shall be presided over by the Chairman of the Board or, in his 
absence, by the Vice Chairman or in his absence by any member elected by the Board. 
(6) The Board may make its own rules of procedure and conduct of its business accordingly. 
(7) A member of the Board, other than an ex­officio member, may at any time by writing 
under his hand resign from his office, provided that no resignation shall take effect until it has been 
accepted by the Board. 
(8) The presence of not less than one­third o f the total members of the Board shall be 
necessary to constitute a quorum for its meetings and its decisions shall be expressed in terms of the 
opinion of the majority members present and voting. In case of a tie, the vote of the presiding officer 
shall be the casting vote. 
(9) The Board may delegate any of its functions, other than the making of regulations, to any 
committee set up by it or to any of its members, subject to such conditions, if any, as it may specify. 
The recommendations of the committees shall be submitted to the Board for approval. 
(10) The Board or any of its committees may invite any technical expert or representative of 
any Government agency or non­governmental organization or other person possessing specialized 
knowledge of any subject for assistance for the performance of its functions. 
(11) The Board may recommend to the Federal Government or a Provincial Government to 
establish advisory committees for various sectors for assisting the Authority in the discharge of its 
functions. 
 
(12) The Provincial Government may notify a specific public department as focal point for 
the proper co­ordination, facilitation and enforcement of the provisions of this Act. 
 
4. Functions and powers of the Board .—(1) The supervision, management of the af fairs, 
and policy direction of the Authority shall vest with the Board. 
(2) The Board may, exercise all powers and do all acts which may be exercised or done by 
the Authority. 
(3) The Board, or a Provincial Government with the concurrence of the Board, may  establish 
any suitable structure or mechanism for enforcement of this Act in consultation with National 
Standards Body including energy efficiency standards, labeling, incentives, fines and other related 
requirements under this Act with effect from the date to be determined by the Board. 
 
(4) The Board may approve appropriate strengthening, restructuring, capacity building, terms 
and conditions of employees and compensation or protection of service benefits for NEECA and its 
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employees, to effectively carry out the functions under the provisions of this Act. 
5. Organization of the Board .—(1) The Board may, for carrying out its functions for 
promotion of energy conservation and efficiency, development of energy efficient technologies, 
certification of energy efficient products and projects and project management, may establish one or 
more organizations as it may consider necessary. 
(2) The organization established under sub­section (1) shall be subject to control and 
supervision of the Board and shall function within the framework of this Act. 
(3) An organization established under sub­section (1) shall perform such business as may be 
prescribed by regulations by the Board for the purpose. 
 
6. Establishment of the Authority.—(1) As soon as may be after the commencement of this 
Act, the Federal Government shall, by notification in the official Gazette, establish an Authority to 
be called the National Energy Efficiency and Conservation Authority. 
(2) The Authority shall be a body corporate having perpetual successi on and a common seal 
with powers, subject to the provisions of this Act, to acquire, hold and dispose of property, both 
moveable and immoveable and shall have the capacity to sue and be sued. 
(3) The general direction and administration of the Authority an d its affairs shall vest in the 
Managing Director, who shall be appointed by the Federal Government on such terms and 
conditions as may be prescribed; Managing Director shall be an energy and environmental expert of 
known integrity,competence with at least ten years of related experience in handling energy projects. 
Managing Director shall be appointed for an initial term of three years and shall be eligible for re­ 
appointment upon satisfactory performance for similar term upto a maximum of sixty­five years age. 
Subject to this Act, the Managing Director may exercise all powers and do all acts and things, which 
may be exercised or done by the Authority. The Managing Director will serve as the Secretary of the 
Board and shall report to the Board and seek its  approval for all matters including its budget, plans 
and projects. 
(4) The Managing Director, officers, employees and servants of the Authority shall, when 
acting or purporting to act in pursuance of any of the provisions of this Act or the rules and 
regulations made thereunder, be deemed to be public servants within the meaning of section 21 of 
the Pakistan Penal Code (Act XLV of 1860). 
 
7. Powers and functions of Authority .— The powers and functions of the Authority shall 
be to— 
(a)  serve as sole focal Federal authority for initiating, catalyzing, carrying out and 
coordinating the implementation of all energy conservation programs in all 
sectors of economy; 
(b)  administer, implement and enforce the provisions of this Act and the rules and 
regulations made thereunder; 
(c)  prepare or update national energy conservation policy for the approval of the 
Board; 
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(d)  prepare draft regulations to be made by the Board pursuant to the provisions 
of this Act; 
(e)  recommend national energy efficiency standards to the Board and after 
approval by the  National Standards Body ensure implementation of these 
standards; 
(f)  coordinate energy conservation policies and programs nationally  and 
internationally; 
(g)  establish protocol s of coordination between relevant functionaries of the 
Government and serve as the information house on energy conservation and 
management; 
(h)  initiate demonstration and research and development programs in support of 
its functions; 
(i)  establish infra structure and take appropriate institutional development and 
capacity building measures for effective implementation of the provisions of 
this Act: 
(j)  establish systems and procedures for surveys, surveillance, monitoring, 
inspection and audits to preven t the inefficient use of energy resources and 
recommend implementation of specific energy conservation measures; 
(k)  establish and maintain one or more laboratories as accredited laboratories for 
conducting tests and analysis to help the Authority in the performance of its 
functions and to conduct research in various aspects of energy conservation; 
(l)  seek information or data relevant to its functions from any person or 
organization for quantitative or technological analysis; 
(m)  recommend to the Federal Government or a Provincial Government the 
adoption of financial and fiscal incentives or schemes for achieving energy 
conservation objectives; 
(n)  initiate requests for foreign technical and financial assistance for the purposes 
of this Ac t, enter into arrangements with foreign agencies and organizations 
for exchange of information and materials and participate in international 
meetings and seminars; 
(o)  obtain information or data relevant to the functions of the Authority from any 
person in such form as the Authority may specify; 
(p)  undertake inquiry or investigation into energy conservation issues, either on 
its own accord or upon complaint from any person or on the advice of the 
Board; 
(q)  summon and enforce the attendance of any pers on or an officer, employee, 
proprietor, partner, manager, director or chief executive of an entity and 
require him to supply any information or document needed for the conduct of 
an inquiry or investigation into any issue being carried out pursuant to the 
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provisions of this Act; 
(r)  direct an initial energy use assessment to be carried out for any upcoming 
project and submitted to the Authority before commencement thereof; 
(s)  carry out energy audits either by itself or direct any person to conduct an 
energy audit by any certified or designated energy auditor for any facility, 
enterprise, factory, building or object for the purpose of identification of 
energy conservation issues and making recommendations for corrective 
measures thereof; 
(t) request for te sts and analysis from its own laboratory or from any other 
accredited laboratory of an equipment, gadget, accessory or hardware to 
measure its energy characteristics; 
(u)  prohibit manufacture, sale or import of equipment or appliances which are not 
energy­ efficient and ensure display of such particulars through labels on 
equipment or appliances as may be necessary; 
(v)  fix and realize fee, rates and charges for rendering any service or providing 
any facility or information or data audit or assessment or test carried out 
pursuant to the provisions of this Act and the rules and regulations made 
thereunder; 
(w)  appoint such technical and legal experts and administrative staff as it 
considers necessary for the efficient performance of its functions on such 
terms and conditions as may be prescribed; and 
 
(x) perform any other function assigned to it by the Federal Government or the 
Board including but not limited to— 
(i)  arrange, conduct and monitor the training of relevant professionals for 
their performance as energy auditors or managers; 
(ii)  facilitate, manage or designate authority for the appropriate 
registration of energy auditing firms or individuals and professionals; 
(iii)  direct, coordinate, renew and terminate the services of energy auditors, 
relevant trainers and energy efficiency inspectors as may be specified 
by regulations. 
8. Indemnity.— No suit, prosecution or other legal proceedings shall lie against the Federal 
or Provincial Government or officers thereof, Managing Director or any member o r officer or 
employee of the Authority or any person exercising any power or performing any act carried or 
contemplated to be carried out in good faith in furtherance of the provisions of this Act, as 
determined by the Board, or the rules or regulations made thereunder. 
 
9. Fund of the Authority. —(1) There shall be formed a fund to be known as the Authority 
Fund, which shall vest in the Authority and shall be utilized by the Authority to meet charges in 
connection with its functions under this Act including , inter alia, the payment of salaries and other 
remuneration to the Managing Director, members, officers, employees, servants, experts and 
consultants of the Authority. 
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(2)  The Authority Fund shall be administered in the manner as may be prescribed.  
 
(3)  To the credit of the Authority Fund shall be placed,— 
(a) initial seed money grant of one billion rupees by the Federal Government, for 
the purpose of meeting expenses in connection with the functions and 
operations of the Board and the Authority, instit utions and organizations 
under this Act, including payment of salaries and other remunerations, 
payable to employees of the Authority as well as consultants and advisers; 
(b)  revenue budget allocations by the Federal Government till such time that an 
adequate Authority Fund is in place; 
(c)  grants made by the Federal Government, whether annually or otherwise; 
(d)  aid and assistance, grants, advances, donations and other non­obligatory funds 
received from foreign governments, local or international agenci es, and 
non­governmental organizations; 
(e) levy that may be collected by the Federal Government for the purposes of 
energy conservation and efficiency enhancement; 
(f)  contributions from private organizations and other persons; 
(g) fees received under the provisions of this Act and the rules and regulations 
made thereunder; 
(h) income from investments and commercially viable energy conservation 
programs; and 
(i)  receipts of the Authority from any other source. 
 
(4) The Authority may inv est its funds in such profit­earning projects, and maintain saving 
accounts in such banks or financial institutions, as may be approved by the Board. 
(5) The accounts of the Authority shall be audited by the Auditor General of Pakistan. 
 10. Powers and fun ctions of the Federal Government to facilitate and enforce efficient 
use of energy and its conservation .—The Federal Government may, in consultation with the  
Authority and National Standards Body (Where ever applicable):— 
(a)  specify the norms/specificati ons for processes and energy consumption 
standards for any equipment, appliance which consumes, generates, transmits 
or supplies energy; 
(b)  specify equipment or appliance or class of equipments or appliances, as the 
case may be, for the purposes of this Act; 
(c)  prohibit manufacture or sale or purchase or import of equipment or appliance 
specified under clause (b), unless such equipment or appliance conforms to 
energy consumption standards: 
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Provided that no notification prohibiting manufacture or sale or  purchase or import of 
equipment or appliance shall be issued within a period of six months from the date of notification 
issued under clause (a): 
 
Provided further that the Federal Government may, having regard to the market share and the 
technological development having impact on equipment or appliance, and for reasons to be recorded 
in writing, extend the said period of six months referred to in the first proviso by a further period not 
exceeding six months; 
(d)  direct display of such particulars on lab el on equipment or on appliance 
specified under clause (b) and in such manner as may be specified by 
regulations; 
(e)  specify, having regard to the intensity or quantity of energy consumed and the 
amount of investment required for switching over to energy  efficient 
equipments and capacity of industry to invest in it and availability of the 
energy efficient machinery and equipment required by the industry, any user 
or class of users of energy in the energy intensive industries and other 
establishments as a designated consumer for the purposes of this Act; 
(f)  alter the list of energy intensive industries specified by the Authority; 
(g)  establish and prescribe such energy consumption norms/specifications and 
standards for designated consumers as it may consider necessary: 
Provided that the Federal Government may prescribe different norms and standa rds for 
different designated consumers having regard to such factors as may be prescribed; 
(h)  direct, having regard to quantity of energy consumed or the norms and 
standards of energy consumption specified under clause (a), the energy 
intensive industries specified to get energy audit conducted by an ac credited 
energy auditor in such manner and intervals of time as may be prescribed by 
regulations; 
(i)  direct, if considered necessary for efficient use of energy and its conservation, 
any designated consumer to get energy audit conducted by an accredited 
energy auditor; 
(j) specify the matter to be included for the purposes of inspection; 
(k)  direct any designated consumer to furnish to the designated agency, in such 
form and manner within such period, as may be prescribed, the information 
with regard to the energy consumed and action taken on the recommendation 
of the accredited energy auditor; 
(l)  direct any designated consumer to designate or appoint energy manager in 
charge of activities for efficient use of energy and its conservation and submit 
a report, in the form and manner as may be prescribed, on the status of energy 
consumption at the end of every financial year to the designated agency; 
(m)  prescribe minimum qualification for energy auditors and energy managers to 
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be designated or appointed under clause (1); 
(n)  direct every designated consumer to comply with energy consumption norms 
and standards; 
(o)  direct any designated consumer, who does not fulfill the energy consumption 
norms and standards prescribed under clause (g), to prepare a sch eme for 
efficient use of energy and its conservation and implement such scheme 
keeping in view the economic viability of the investment in such form, time 
and the manner as may be prescribed; 
(p)  prescribe energy conservation building codes for efficient use of energy and 
its conservation in the building or building complex; 
(q)  amend the energy conservation building codes to suit the regional and local 
climatic conditions; 
(r)  direct every owner or occupier of the building or building complex, being a 
designated consumer to comply with the provisions of energy conservation 
building codes for efficient use of energy and its conservation; 
(s)  direct, any designated consumer referred to  in clause (r), if considered 
necessary, for efficient use of energy and its conservation in his building to 
get energy audit conducted in respect of such building by an accredited energy 
auditor in such manner and intervals of time as may be specified by 
regulations; 
(t) take all measures necessary to create awareness and disseminate information 
for efficient use of energy and its conservation; 
(u) arrange and organize training of personnel and specialists in the techniques for 
efficient use of energy and its conservation; 
(v)  prescribe penalties for the energy inefficient apparatus, appliances, equipment, 
plant and machinery; and 
(w)  take steps to encourage preferential treatment for use of energy efficient 
equipment or appliances: 
Provided that the pow ers under clauses (p) to (s) shall be exercised in consultation with the 
concerned Province. 
11. Powers of the Federal Government to issue energy saving certilicate. —(1) The 
Federal Government may issue energy saving certificate to a designated consumer wh ose energy 
consumption is less than the prescribed norms and standards in accordance with the procedure as 
may be prescribed. 
(2) The designated consumer whose energy consumption is more than the prescribed norms 
and standards shall be entitled to purchase  the energy saving certificate to comply with the 
prescribed norms and standards. 
 
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12. Powers of the Federal Government to specify value of energy . The Federal 
Government may, in consultation with Authority, prescribe the value of per metric ton of oil 
equivalent of energy consumed for the purpose of this Act. 
 
13. Powers and functions of Provincial Governments to facilitate and enforce efficient 
use of energy and its conservation. —(1) The Provincial Governments may, after approval of 
proposals to the ef fect thereof from the Board and in consultation with the Authority, by 
notification,— 
 
(a)  amend the energy conservation building codes to suit the regional and local 
climatic conditions and may, by rules made by it, specify and notify energy 
conservation building codes with respect to use of energy in the buildings; 
 
(b)  direct every owner or occupier of a building or building complex being a 
designated consumer to comply with the provisions of the energy conservation 
building codes; 
 
(c)  direct, if considered necessary for efficient use of energy and its conservation, 
any designated consumer referred to in clause (b) to get energy audit 
conducted by an accredited energy auditor in such manner and at such 
intervals of time as may be specified by regulations; 
 
(d)  establish or designate laboratories duly accredited and certified by the Federal 
Government; 
 
(e) collect data and information and maintain database; and 
(f)  direct, any designated consumer to furnish to the designated agency, in such 
form and manner and within such period as may be specified by rules made by 
it, information with regard to the energy consumed by such consumer. 
(2) The Federal Government may establish a fund to be called the Energy Conservation Fund 
for the purposes of promotion of efficient use of energy and its conservation within its territory. 
(3) To the Fund shall be credited all grants and loans that may be made by the Provincial 
Government or the Federal Government or any other organization or individual for the purposes of  
this Act. 
(4) The Fund shall be applied for meeting the expenses incurred for implementing the 
provisions of this Act. 
(5) The Fund established under sub­section (2) shall be administered by such persons or 
authority and in such manner as may be specified  in the rules made by the Federal Government in 
respect thereof. 
(6) The Provincial Government may, by notification in the official Gazette, adopt or make 
rules for carrying out the provisions of this Act, which shall not be inconsistent with the rules, if any, 
made by the Federal Government. 
(7) The Provincial Governments shall nominate a specific department under its control to 
coordinate with the Authority and facilitate implementation of the provisions of this Act within its 
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jurisdiction. The Authority upon receiving the nomination from Provincial Government, may declare 
the nominated department as the designated. agency. The designated agency may appoint as many 
inspecting officers as may be necessary for the purpose of ensuring compliance of this Act. 
(8) Subject to any rules made under this Act, an inspecting officer shall have such powers as 
vested in him by the Board. 
(9) The Federal Government or a Provincial Government may, in exercise of their powers 
and performance of their functions under this A ct and for efficient use of energy and its 
conservation, issue such directions in writing to any person, officer, authority or any designated 
consumer as they deem fit for furthering the purposes of this Act and such person, officer or 
authority or any designated consumer shall be bound to comply with such directions. 
 
Explanation.—The power to issue directions under this sub­section includes the power to 
direct in respect of— 
(a)  regulating the norms for process and energy consumption standards in any 
industry or building or building complex; and 
(b)  regulating the energy consumption standards for equipments and appliances. 
14. Powers of Provincial Government to make rules. —(1) The Provincial Government 
may, by notification in the official Gazette, make rules for carrying out the provisions of this Act and 
not inconsistent with the rules, if any, made by the Federal Government. 
(2) In particular, and without prejudice to the generality of the foregoing power, such rules 
may provide for all or any of the following matters, liamely:— 
(a)  energy conservation building codes under section 13; 
(b)  the form, manner and period within which information with regard to energy 
consumption shall be furnished under section 13; 
(c)  the person or any authority who shall  administer the Fund and the manner in 
which the Fund shall be administered under section 13; 
(d)  the matters to be included for the purposes of inspection under section 15; 
(e)  any other matter which is to be, or may be, prescribed, or in respect of which 
provision is to be made, or may be made, by rules. 
15. Powers of inspection .—(1) The designated agency may appoint, after the date of 
commencement of this Act, as many inspecting o fficers as may be necessary for the purpose of 
ensuring compliance with energy consumption standards specified under section 10 or ensure 
display of particulars on label on equipment or appliance specified under clause (b) of section 10 or 
for the purpose of performing such other functions as may be assigned to them. 
 
(2) Subject to any rules made under this Act, an inspecting officer shall have power to— 
 
(a)  inspect any operation carried on or in connection with the equipment or 
appliance specified under clause (b) of section 10 or in respect of which 
energy standards under clause (a) of section 10 have been specified; 
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(b)  enter any place of designated consumer at w hich the energy is used for any 
activity and may require any proprietor, employee, director, manager or 
secretary or any other person who may be attending in any manner to or 
helping in, carrying on any activity with the help of energy— 
(i)  to afford him necessary facility to inspect— 
(A)  any equipment or appliance as he may require and which may be 
available at such place; 
(B) any production process to ascertain the energy consumption norms 
and standards; 
(ii) to make an inventory of stock of any eq uipment or appliance checked or 
verified by him; 
(iii) to record the statement of any person which may be useful for, or relevant    
to, for efficient use of energy and its conservation under this Act. 
(3) An inspecting officer may enter any place of designated consumer,— 
(a) where any activity with the help of energy is carried on; and 
(b) where any equipment or appliance notified under clause ( b) of section 10 has 
been kept, during the hours at which such place is open for production or 
conduct of business connected therewith. 
(4) An inspecting officer acting under this section shall, on no account, remove or cause to be 
removed from the place wherein he has entered, any equipment or appliance or books of account or 
other documents. 
16. Powers to issue directions.— The Federal Government or a Provincial Government 
may, in exercise of its powers and performance of its functions under this Act and for efficient use of 
energy and its conservation, issue such directions in writing as it deems fit for the pur poses of this 
Act to any person, officer, authority or any designated consumer and such person, officer or 
authority or any designated consumer shall be bound to comply with such directions. 
Explanation.—For the avoidance of doubts, it is hereby declared t hat the power to issue 
directions under this section includes the power to direct— 
(a)  regulation of norms for process and energy consumption standards in any 
industry or building or building complex; or 
(b)  regulation of the energy consumption standards for equipment and appliances. 
17. Procedure for conducting inquiry, investigation and energy audit .—(1) The 
Authority or a designated agency may on its own initiative or upon a complaint require any person to 
get energy audit carried out within the time stipulated by such agency. 
(2) The Authority or a designated agency shall bring the wastage of energy into notice of that 
person and give reasonable time to that person for taking corrective measures thereof. 
Page 17 of 19 
 
 
(3) After the expiry of the stipulated time, the  Authority or a designated agency shall require 
that person to get second energy audit or such remedial measures as may be prescribed. 
(4) If that person is again found to be contravening the provisions of this Act, he shall be 
subject to a fine, to be imp osed by the Authority or a designated agency, in accordance with section 
18, after providing a reasonable opportunity of hearing to that person. 
18. Imposition of fine. —(1) Failure on part of any person to comply with the provisions of 
this Act shall const itute an offence, which shall entail a fine commensurate with the gravity of 
offence, as determined by the Board from time to time. 
(2) The amount of fine imposed, in case of default, shall be recovered as arrears of land 
revenue. 
19. Energy Conservation Tribunals.—(1) The Federal Government may, by notification in 
the official Gazette, establish as many Energy Conservation Tribunals as it consider necessary and, 
where it establishes more than one Energy Conservation Tribunals, it shall specify territorial limits 
within which, or the class of cases in respect of which, each one of them shall exercise jurisdiction 
under this Act. 
(2) An Energy Conservation Tribunal shall consist of a Chairperson who is, or has been, or is 
qualified for appointment as a judge of a High Court to be appointed after consultation with the 
Chief Justice of the High Court concerned and two members to be appointed by the Federal 
Government of which at least one shall be a technical member with suitable professional 
qualifications and experience in the energy conservation field as may be prescribed. 
(3) For every sitting of the Energy Conservation Tribunal, the presence of the Chairperson 
and not less than one member shall be necessary. 
(4) A decision of an Energy Conservation Tribunal shall be expressed in terms of the opinion 
of the majority of its members, including the Chairperson, or if the case has been decided by the 
Chairperson and only one of the members and there is a difference of opinion between them, the 
decision of the Ener gy Conservation Tribunal shall be expressed in terms of the opinion of the 
Chairperson. 
(5) An Energy Conservation Tribunal shall not, merely by reason of a change in its 
composition, or the absence of any member from any sitting, be bound to recall and re hear any 
witness who has given evidence, and may act on the evidence already recorded by or produced 
before it. 
(6) An Energy Conservation Tribunal may hold its sittings at such places within its territorial 
jurisdiction as the Chairperson may decide. 
(7) No act or proceeding of an Energy Conservation Tribunal shall be invalid by reason only 
of the existence of a vacancy in, or defect in the constitution, of the Energy Conservation Tribunal. 
(8) The terms and conditions of service of the Chairperson and mem bers of the Energy  
Conservation Tribunal shall be such as may be prescribed. 
(9) An Energy Conservation Tribunal shall exercise such powers and perform such functions 
as are, or may be, conferred upon or assigned to it by or under this Act or the rules and  regulations 
made thereunder. 
Page 18 of 19 
 
 
(10) All contraventions under sections 17 and 18 shall exclusively be triable by an Energy 
Conservation Tribunal. 
 
(11) In all matters with respect to which no procedure has been provided for in this Act, the 
Energy Conservation Tribunal shall follow the procedure laid down in the Code of Civil Procedure, 
1908 (Act V of 1908). 
(12) Any person aggrieved by any order or direction of the Authority or any designated 
Provincial agency under any provision of this Act and ru les or regulations may prefer an appeal to 
the Energy Conservation Tribunal within thirty days of the date of communication of the impugned 
order or direction to such person. 
(13) An appeal to the Energy Conservation Tribunal shall be in such form, contain  such 
particulars and be accompanied by such fee as may be prescribed. 
(14) Any person aggrieved by any final order of the Energy Conservation Tribunal passed 
under this Act may, within thirty days of communication of such order, prefer an appeal to the Hi gh 
Court concerned. 
(15) The Energy Conservation Tribunal shall, preferably, dispose of the appeal within a 
period of ninety days from the date of its filing. In case the Tribunal fails to dispose of the same 
within the stipulated period, it shall decide w ithin a reasonable period, after recording reasons for 
such delays. 
(16) The Energy Conservation Tribunal may co­opt any additional member to assist the 
Tribunal in technical matters. 
 
20. Power to make rules .— The Federal Government may, by notification i n the official 
Gazette, make such rules for carrying out the purposes of this Act, as approved by the Board. 
 
21. Power to make regulations.—(1) The Board may, by notification in the official Gazette, 
make regulations in consultation with the Authority to achieve the purposes of this Act. 
(2) Without prejudice to the provisions of sub­section (1), the regulations may provide for 
inter alia the powers and modes of appointments and determination of the terms and conditions of 
the employees. 
22. Delegation of powers.—(1) The Authority may, by general or special order in writing, 
delegate to any of its officer, consultant, adviser, designated entity or any other person such of its 
powers and functions under this Act and subject to such conditions, as may be specified in the order. 
23. Power to exempt .—(1) In case the Authority is of the opinion that it is expedient so to 
do in the public interest; it may, by notification and subject to such conditions as may be specified 
therein, exempt any designated consumer or class of designated consumers from application of all or 
any of the provisions of this Act: 
Provided that the Authority shall not grant exemption to any designated consumer or class of 
designated consumers for a period exceeding five years. 
(2) After the expiry of the period specified in the proviso to sub­section (1), the designated 
consumer or class of designated consumers shall not be entitled for exemption for any further period. 
Page 19 of 19 
 
 
24. Act not to be derogatory. — The provisions of this Act shall be in add ition to and not in 
derogation to the provisions of any other law for the time being in force. 
25. Transitional.—(1) All existing officers, employees and servants of the ENERCON, on 
the date of coming into force of this Act, shall stand transferred to the Authority, provided that all 
such officers, employees and servants shall have a one time irrevocable option to be exercised within 
six months of the commencement of this Act either to be absorbed as the employees of the Authority 
or retain their status which was enjoyed in the ENERCON. 
(2) If any officer, employee or servant exercises one time irrevocable option to be absorbed 
against their respective positions he shall be deemed to be duly appointed under the relevant 
provisions of this Act on the date such officer, employee or staff exercises the one time option and 
the terms and conditions of services of such officer, employee or staff will be governed by this Act 
and rules and regulations made thereunder. 
(3) All such officers, employees and servants who do not exercise the option under 
sub­section (1) of getting absorbed in the Authority shall continue enjoying the status as was enjoyed 
by them before the commencement of this Act. 
26. Removal of difficulty.— If any difficulty arises in giving effect t o the provisions of this 
Act, the Federal Government may, by order in the official Gazette, make such provisions, not being 
inconsistent with the provisions of this Act, as may appear to be necessary for removing the 
difficulty: 
Provided that such power sh all not be exercised after one year of the commencement of this 
Act. 
27. Savings.—(1) All assets, rights, powers, authorities and privileges and all property, cash 
and bank balances, reserve funds, investment and all other interests and rights in or arisin g out of 
such property and all debts, liabilities and obligations of whatever kind of the ENERCON subsisting 
immediately before its dissolution shall stand transferred to and vest in the Authority constituted 
under this Act. 
(2) All debts, liabilities and obligations accrued or incurred or contracts entered into, rights 
acquired and all matters and things engaged to be done by, with or for, the ENERCON shall be 
deemed to have been accrued, incurred, entered into, acquired or engaged to be done by, with or f or, 
the Authority. 
(3) All suits and other legal proceedings instituted by or against the ENERCON before its 
dissolution shall be deemed to be suits and proceedings by or against the Authority and shall be 
proceeded or otherwise dealt with accordingly. 
(4) Any reference to the ENERCON in any statutory instrument or document shall, unless the 
context otherwise requires, be read and construed as reference to the Authority under this Act. 
28. Repeal. The Federal Government's Resolution No. S.R.O. 4(KE)186, dated the 23rd 
December, 1986 is hereby repealed. 
 
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