This brief is derived from the proceedings of the roundtable session titled Energy Conservation Law: A

Review of Implementation Strategy held on January 26, 2017 at Institute of Policy Studies, Islamabad.
The Panelists included: Asad Mehmood, Manager Technical, NEECA; K.M. Zubair, Former Managing
Director, ENERCON; and Ahmad Sohail, Technical Advisor, Arizona State University (based at UET
Peshawar). The session was chaired by Ashfaq Mahmood, Former Secretary, Water & Power, Patron,
Energy Management Program, COMSATS, Islamabad.

Background the promotion of energy efficiency and

Energy conservation means reduction in the
consumption of energy. It means better level of
output from same level of input. Energy
conservation refers to reducing the consumption of
energy by the adoption of certain human behavior,
whereas energy efficiency refers to the reduction of
consumption through the use of efficient
technology.1 While countries are striving for secure
energy supplies, ensuring efficient use of energy to
reduce the consumption isnt less important. In
Pakistan, energy conservation and efficiency has
often been neglected despite the lingering crisis in
energy sector. The focus has been on energy
generation but efficient distribution and energy
conservation have not attained the due attention.
Introduction of Energy Conservation Law in
Pakistan
National Energy Conservation Centre (ENRCON)
was established in 1980s. It has been involved in
conservation in the country. To accelerate the pace
of work on the subject area, ENERCON has been
transformed into National Energy Efficiency &
Conservation Authority (NEECA) with the
promulgation of National Energy Efficiency and
Conservation Act 2016.2
The objective of this act is to promote energy
conservation and efficiency in all sectors of
economy3. This act would pave the way for the
establishment of institutions and enunciation of
mechanisms and procedures so as to provide for
effective conservation and efficient use of
energy.4 To achieve the objective of promoting
energy conservation and efficiency, NEECA aims
to initiate activities starting from identification of
energy efficiency and conservation opportunities
and including technology demonstration,
undertaking pilot projects, information and
outreach, training and education, and development

1
Efficiency and Conservation, U.S. Energy Information Agency, December 15, 2016, accessed, February 6, 2017,
http://www.eia.gov/energyexplained/index.cfm?page=about_energy_efficiency
2
The bill is available at: http://www.enercon.gov.pk/
3
"Sectors of Economy" include but not limited to power sector, industrial sector, transport sector, agriculture and livestock
sector and the building sector.
4
http://www.enercon.gov.pk/
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of plans and policies for promoting mitigation,
energy efficiency and conservation best practices.5
Energy Efficiency and Conservation Act is a major
milestone towards national energy security.
Nonetheless, there are certain concerns pertaining
to the act that require due diligence while
implementation of the law.
Concerns
1. The composition of Pakistan Energy
Efficiency and Conservation Board
(PEECB)6 is complex with the inclusion of
the majority of secretary level members. It
will be extremely difficult to gather all these
members and convene the boards meetings.
2. Most of the board members come from the
ministries whom the implementation
measures are to be enforced upon. Reaching
on consensus in implementation modalities
will therefore be quite difficult.7
3. Establishment of many multi-tiered
organizations will also be quite cost
intensive. 8
4. The placement of inspectors may add to
unnecessary policing of industrialists and the
entrepreneurs that might result in
disappointment with the whole process.9
5. Ensuring energy efficiency in power, gas and
other energy utility companies in public
sector have been ignored in the law.
6. Establishment of too many accredited labs10
in the public sector will demand enormous
resources, time and most likely too many
bureaucratic parleys. Besides, access to such
labs for the energy related private
stakeholders, will be full of hurdles.
7. Measures like appliances replacement
would involve financial implications, if not
evaluated carefully.
8. Conservation on the cost of consumers
should be avoided e.g. earlier measures for
handling energy shortages through switching
off street lights and closing down markets.
Recommendations
Following are the set of recommendations
pertaining to short, medium and long term issues
and strategies. These recommendations are
categorized into four sections: Organizational
Structure; Legal & Regulatory Issues; Engagement
with Private Sector, Academia and Universities;
and Awareness Campaigns/ Strategies.
Organizational Structure
1. A well-defined institutional structure
should be delineated, down to the lowest
level, covering horizontal as well as vertical
organizational matrix and the same be
shared through the NEECA portal.

5
Ibid.
6
Composition of PEECB (23 Members): 1. Chairman Federal Minister of the Division to which subject matter stands Allocated
(Water & Power) 2. Vice Chairman Federal Secretary of the Division to which subject matter stands Allocated (Water &
Power) Members: Federal Secretaries (Finance, Petroleum & Natural Resources, Planning, Science & Technology, Industries,
Housing & Works, Climate Change); Provincial Secretaries (Designated Departments); Chairman OGRA & NEPRA; Managing
Director ENERCON; One Nominee from Chambers of Commerce & Industry; Five members from the Private Sector including
Agriculture Expert.
7
Ibid.
8
An Act to provide for the establishment of institutions and enunciations of mechanisms and procedures so as to provide for
effective conservation and efficient use of energy.
9
15. (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; (b) enter any place of designated consumer at which 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 stock of any
equipment 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.
10
7. (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.
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 2. Suitable amendments should be made in the
law so that the PEECB meetings can be
attended by officials of up to Joint
Secretary Level, specifying minimum
essential attendees strength for holding the
meetings in the absence of some member
(s). This will overcome the concerns of
delays in the critical policy decisions which
can dilute the desired impacts.
3. While it is essential to have infrastructure
for effective performance of the envisaged
energy efficiency and conservation
functions, utilization of existing
departments, buildings and labs should be
given priority to save avoidable expenses.
4. While giving due attention to all the sectors
of economy, relevant private sector stake
holders opinion should be incorporated in
the applicable policy measures.
Legal & Regulatory Issues
1. Roles and responsibilities at federal,
provincial and local bodies level must be
clearly laid down. The same may be
defined after sharing the draft policy with
all stake holders and incorporating
feedback in the final document. A
detailed document covering litigation
matters related to implementation of the
law will be needed from very early stages.
2. To ensure effectiveness of policies in all
times, relevant departments should be
designated for data collection and its
evaluation for making amendments in
relevant rules and guidelines.
3. Some rules and regulations must be in
place for prevention of distribution losses
by the energy utility companies like
SNGPL, SSGCL and the DISCOs.
4. Incentives should be introduced for
voluntary contributions from
industrialists and entrepreneurs, which
must precede the penalties. Incentives in
the form of tax rebate etc. for those
willingly taking actions to improve their
energy consumption rate. Policing must
not become a threat to the private stake
holders in the energy, industrial and other
sectors.
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5. The replacement of domestic appliances
should be carefully weighed in terms of
its practicability and cost effectiveness
etc. It may be more prudent to ensure that
new procurements conform to energy
efficiency standards.
6. Maximum permissible energy intensity
should be defined for all processes and
for all type of equipment/ appliances.
7. The regulatory, certification and audit
clauses must include process benchmarks
based on latest technological
advancements, for each sector with
potential for energy saving, which may be
revised by a subordinate division as per
local climatic conditions and the resource
availability.
8. Checks and controls on the claimed
products energy parameters may be
instituted through mechanisms like:
a. Pre-shipment inspections of power/
industrial machinery and
equipment.
b. Inspection of domestic appliances
and commercial equipment through
accredited labs could be established
in existing departments (buildings)
like Pakistan Council of Scientific
and Industrial Research (PCSIR),
Pakistan Industrial Technical
Assistance Centre (PITAC), and
Pakistan Standards & Quality
Control Authority (PSQCA) in
order to save on financial needs for
new structures and infrastructure.
9. The unconventional models successfully
used in the world, can be evaluated for
adoption in our environment, for
example:
a. Line of Credit System in which
banking sector provides credit to the
industrialists recommended by
agencies like NEECA after they
submit energy conservation project.
Failure to perform as promised/
planned entails penalties against the
defaulters.
b. Energy Service Providers who offer
energy management plans to the
industrialists/ entrepreneurs
 demanding that they be paid from
the savings attained by the latter.
10. Power sector should be approached to lay
down efficiency benchmarks for all the
upcoming power plants, besides
persuading existing ones to take steps for
improving their plants efficiency.
11. Energy conservation fund may be used to
support projects presenting assured
energy saving capacity.
12. It should be ensured that the energy
projects including those related to China-
Pakistan Economic Corridor (CPEC) are
energy conserving and efficient.
Engagement with Private Sector, Academia and
Universities
1. The law implementation measures must
incorporate provisions for involving
academia and universities in which
scholarship programs can attract better
brains. Academia can play a pivotal role in
formulating the policies, offering testing
labs, educating and training support,
research and much needed awareness
campaign. Formal training for qualifying
people to derive desired results from the
energy efficiency and conservation efforts
is essential.
2. Multifarious and too many labs will be
needed as we move forward towards
application of the Law. It will be much
more economical and efficacious to
integrate universities in this job, which will
offer following benefits:
a. Bring in huge savings against the
finances required for establishing all the
labs.
b. Increase the students/ scholars
learning opportunities.
Prepared by IPS Task Force | For queries: Mairaj-ul-Hamid, Asst. Research Coordinator, mairaj@ips.net.pk
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c. Enhance quality and prospects for
research in the energy related subjects.
Awareness Campaigns/ Strategies
1. An important requirement is to incorporate
the concept of energy conservation in the
curriculum at primary and secondary level.
2. Domestic consumers should be educated
about enormous energy saving potential in
changing their life-style. The concept of
conservation in the light of Sunnah, should
also be highlighted in the awareness
campaigns. Media can be used extensively
for public awareness purpose.
3. Awareness efforts should be aimed at
cultural transformation in the society which
necessitates a lot of one-on-one
interactions. Volunteers (especially among
the teaching staff) from schools, colleges
and universities offer promising potential
for the same which must be exploited
through suitable arrangements in the
implementation methodology.
4. Prospective financial savings potential
should be highlighted for the energy
industry.
5. Slogans such as Energy Efficiency for
Trade Competitiveness should be framed
in consonance with the role/ function of
each sector and, be spread to create
awareness.
The overall promotion of the culture of energy
conservation needs an integrated strategy. There is
a need to put in place a master integrated plan right
from the beginning. It would offer much better
dividends in advancing the desired goals.
Incentivizing the mechanism of energy efficiency
and conservation is the suggested approach in
achieving the goals.
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