Section 8 in 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 Saving Certificate and Value of Per Metric Tonne of Oil Equivalent of Energy Consumed) Rules, 2012
8. Check-verification.
(1)The Bureau may on its own, or on receipt of a complaint regarding any error or inconsistency or misrepresentation, within one year from the date of submission of the compliance report [* * *] [Omitted 'or within six months from the date of issue of energy savings certificates, whichever is later' by Notification No. G.S.R. 373(E), dated 31.3.2016 (w.e.f. 30.3.2012).], shall initiate action for review of compliance report in accordance with the provision of [sub-rule (2) and (2A)] [Substituted by Notification No. G.S.R. 373(E), dated 31.3.2016 (w.e.f. 30.3.2012).].(2)[ Where the Bureau decides to undertake check-verification on its own, it shall appoint an accredited energy auditor, who has not performed the verification functions with respect to the concerned designated consumer, to conduct the check-verification and in any other case, the Bureau shall initiate action in accordance with the following procedure, namely:-] [Substituted 'The Bureau shall initiate action in accordance with the following procedure, namely' by Notification No. G.S.R. 373(E), dated 31.3.2016 (w.e.f. 30.3.2012).](a)a notice shall be issued to the designated consumer as well as to the accredited energy auditor who had submitted the verification report with a copy to relevant state designated agency, to provide comments in reply to the said notice [within two months] [Substituted 'within ten working days' by Notification No. G.S.R. 373(E), dated 31.3.2016 (w.e.f. 30.3.2012).] from the date of receipt of aforesaid notice;(b)the comments furnished by the designated consumer and accredited energy auditor shall clearly state that-(i)they stand by the compliance report and verification report submitted by them and submit a confirmation report giving point wise replies with necessary documents in response to the said notice; or(ii)they accept the errors or inconsistencies or misrepresentation pointed out in the aforesaid notice and shall give detailed explanations in respect of each point in the notice and work out the impact of such errors or inconsistencies or misrepresentation on the submitted compliance report;(c)within ten working days from the date of the receipt of the comments referred to in clause (b), Bureau shall after taking into consideration the said comments, decide to undertake or not to undertake review and the Bureau shall record the reasons in writing for its decision;(d)where the Bureau, in consultation with state designated agency, decides to undertake review,(i)it shall appoint an accredited energy auditor, who has not performed the verification functions with respect to the concerned designated consumer, to conduct the check-verification;(ii)on a complaint, the said check-verification shall be carried out at the cost of the complainant;(e)where the Bureau decides not to undertake the said review, the designated consumer, his accredited energy auditor, and the complainant shall be informed in that regard in writing.(2A)[ Where check-verification has been decided to be undertaken, it shall be competent for the State designated agency to supervise the completion of check-verification through its Inspecting Officer, who shall, if need be, may submit his inspection report under the Energy Conservation (Inspection), Rules, 2010 to the State designated agency, who shall take further necessary action under intimation to the Bureau.] [Inserted by Notification No. G.S.R. 373(E), dated 31.3.2016 (w.e.f. 30.3.2012).](3)The check-verification process shall involve assessment to ensure that.-(a)the activities relating to the compliance with energy consumption norms and standards have been performed and the issue or purchase of energy savings certificate are in accordance with the provisions of these rules;(b)the monitoring and verification process are in accordance with the provisions of [rule 7] [Substituted by Notification No. G.S.R. 373(E), dated 31.3.2016 (w.e.f. 30.3.2012).];(c)[ the details of the data and the activities referred to in rule 7 are evaluated and conclusion made that errors, omissions or misrepresentations or aggregation by way of errors, and sums thereof shall not exceed ±0.5 percent. which shall be the permissible error in terms of metric tonne of oil equivalent for the energy consumption norms and standards achieved by the activities or issue or purchase of energy savings certificate.] [Substituted by Notification No. G.S.R. 373(E), dated 31.3.2016 (w.e.f. 30.3.2012).](4)The said accredited energy auditor shall assess and verify that the activities performed by the designated consumer for compliance with the energy consumption norms and standards are in accordance with these rules, and the assessment and check-verification process shall involve-(a)a review of the documents as well as the on-site assessment referred to in rule 6 to verify that the activities performed to comply with the energy consumption norms and standards are in accordance with these rules and in case the aforesaid accredited energy auditor decides that it was not possible or appropriate to make a site visit, then he shall record reasons in writing in this regard;(b)a review of both quantitative and qualitative information on the energy consumption norms and standards, the quantitative information comprising of the reported data in 'Form A', and the qualitative information comprising of information on internal management controls, calculation procedures, procedures for transfer of data, frequency of energy consumption norms and standards achieved every year following the baseline year until the target year, reports and review of internal field audit of calculations or data transfers;(c)a review of previous verification reports;(d)a review of any other information and documents relevant to or having a bearing on the activities performed under these rules;(e)a review of the monitoring and verification process referred to in rule 7.(5)The designated consumer shall furnish full and complete data, provide necessary documents and other facilities required by the accredited energy auditor for the purpose of performing the function of check-verification under these rules.(6)The accredited energy auditor in-charge of check-verification function shall report the results of his assessment in a check-verification report and the said report shall contain,-(a)the summary of the verification process, results of his assessment and his opinion along with the supporting documents;(b)the details of check-verification activities carried out in order to arrive at the conclusion and opinion including the details captured during the verification process and conclusion relating to compliance with energy consumptions norms and standards, increase or decrease in specific energy consumption with reference to the specific energy consumption in the baseline year, entitlement about the issue or liability to purchase energy savings certificate.(7)If the accredited energy auditor records in his check-verification report, a positive opinion, it shall be concluded that all the requirements with regard to the compliance with energy consumption norms and standards ans the issue or purchase or energy savings certificates have been met.(8)If the accredited energy auditor records in his check-verification report, a negative opinion, the effect of such opinion on the energy consumption norms and standards, issue or purchase of energy savings certificate the liability of the accredited energy auditor in giving the verification report and amount of the unfair gain gained by the designated consumer as a result of such verification report shall be calculated by the accredited energy auditor conducting the check-verification.(9)The accredited energy auditor in-charge of check-verification shall submit his report with due certification in Form 'C' to the Bureau and the concerned State Designated Agency.(10)Where the verification report given by the accredited energy auditor secures an unfair or undue gain due to the deficiencies or inconsistencies or errors or misrepresentation by the designated consumer, the quantum of such gain shall be calculated having regard to the following factors, namely-(a)the value of the amount payable by such designated consumer shall be as worked out in the verification report plus twenty-five per cent of such value because of unfair practice used by the said designated consumer for obtaining unfair advantage:(b)[ the amount of metric tonne of oil equivalent of energy on account of unfair gain identified due to check-verification and the price of the said amount of energy shall be calculated as per rule 16 based on the assessment year of the respective cycle.] [Substituted by Notification No. G.S.R. 409(E), dated 26.4.2018 (w.e.f. 30.3.2012).](ba)[ the value of per metric tonne of oil equivalent of energy shall be taken from notified value of the respective target year under these rules;] [Inserted by Notification No. G.S.R. 373(E), dated 31.3.2016 (w.e.f. 30.3.2012).](c)cost of check-verification.(11)The State designated agency may furnish its comments on the report within [one month] [Substituted 'ten days' by Notification No. G.S.R. 373(E), dated 31.3.2016 (w.e.f. 30.3.2012).] from the receipt of the report from the said accredited energy auditor and in case no comments are received from the concerned state designed agency, it shall be presumed that they have no comments to offer in the matter.(12)The Bureau after the expiry of ten days referred to in sub-rule (11), shall issue show cause notice to the designated consumer as well as to his accredited energy auditor specifying the deficiencies or inconsistencies or errors or misrepresentation noticed against the designated consumer and his accredited energy auditor.(13)The designated consumer as well as his accredited energy auditor shall submit their replies to the said show cause notice within a period of fifteen working days to the officer of the Bureau who has issued that show cause notice.(14)The Bureau after examining the said replies to the show cause notice referred to in sub-rule (13), shall forward the report to the concerned State designated agency specifying the following details for the purpose of initiating the penalty proceedings, namely:-(a)the number of energy savings certificates wrongfully obtained by the designated consumer on the basis of verification report found to be wrong and false on check-verification;(b)the number of energy savings certificates which the designated consumer was liable to purchase for non-compliance with the energy consumption norms and standards as found in the check-verification report;(c)details of the misrepresentation, if any and the unfair gain due to such misrepresentation;(d)the cost of check-verification.(15)The State designated agency within two months from the date of the receipt of the report referred to in [sub-rule (14)] [Substituted by Notification No. G.S.R. 373(E), dated 31.3.2016 (w.e.f. 30.3.2012).] shall initiate-(a)action to recover from the designated consumer the loss to the Central Government by way of unfair gain to the designated consumer;(b)penalty proceedings against the persons mentioned in the said report, under intimation to the Bureau;(c)register complaint for such fraudulent unfair gain if designated consumer does not pay penalty and loss to the exchequer in the specified time mentioned in the penalty proceedings.(16)Where the check-verification has been initiated on the basis of a complaint received by the Bureau, the cost of check-verification shall be borne by the complainant, in case it was found on check-verification that the designated consumer has submitted correct information in Form 'A'.(17)Where the check-verification has been initiated on the basis of a complaint received by the Bureau, the cost thereof shall be borne by the designated consumer in case it was found on check-verification that the designated consumer has submitted false and incorrect information in Form 'A'.
