The Ministry of Power on 30th August 2022, published the 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 or purchase of Energy Savings Certificate and Value of Per Metric Ton of Oil Equivalent of Energy Consumed) Amendment Rules, 2022.
Through this amendment, the definition for the term “floor price “has been inserted which means the minimum price at which the Energy Savings Certificate shall be traded in power exchanges.
Further under rule 12 which deals with procedure for issue of energy savings certificate in which the following sub-clause has been inserted:
12(5) The designated consumer who has been issued energy saving certificates during the current cycle may use them for the purpose of banking and the energy savings certificates issued shall remain valid till these energy saving certificates are sold
12(9) The floor price for the Trading of Energy Saving Certificates shall be fixed at ten percent of the price of one metric tonne of oil equivalent of energy consumed as may be notified by the Central Government, by notification in the Official Gazette for every Perform, Achieve and Trade Cycle.
