Energy Conservation Rules, 2012 (PAT Rules 2012) notified on 30th March 2012 by Ministry of Power, has specified that the ESCerts to be issued/entitled to purchase will be in electronic form and tradable on Power Exchange. – BEE developed PATNet portal for all the Designated Consumers (DCs) through which they upload their forms and ESCerts can be electronically issued/entitled to purchase to them. CERC is the market regulator for trading of ESCerts, POSOCO is the Registry for ESCerts; and IEX as well as PXIL are the Power exchanges.
Perform, Achieve and Trade (PAT) is a scheme which is a market based mechanism and got birth under the National Mission on Enhanced Energy Efficiency. This is the unique scheme which encapsulates all the major Energy Intensive sectors across the PAN India. The industries under the PAT Scheme is given a name of Designated Consumers.
Specifications of the ESCerts Framework:
|Name of Parameter||Details|
|Designated Consumers||1 MWh|
|Buyers||Industries not achieving target|
|Sellers||Industries achieving beyond target|
|Target||6.6 million toe for 1st Cycle|
|Mechanism||Cap and Trade|
|Phase Cycle||3 Years|
|ESCerts||1 ESCert = 1 MTOE (Metric Tonne of Oil Equivalent)|
|Trading Platform||Power Exchanges only|
|Penalty||As per Energy Conservation Act, 2001
(Link with market value of oil equivalent)