In the ensuing PAT scheme, all the DCs will be required to achieve a reduction of Specific Energy Consumption (SEC) from their baseline SEC within 3 years time (2012-13 to 2014-15).

The Perform Achieve and Trade scheme is a market-based mechanism to enhance energy efficiency in the ‘Designated Consumers’ (large energy-intensive industries and facilities).

The Scheme includes the following project steps:

Goal setting: Set a specific energy consumption (SEC) target for each plant, depending on level of energy intensity (specific energy consumed = energy use / output) of that plant. The target will specify by which percentage a plant has to improve its energy intensity from the base line value in a period of three years.

Reduction phase: Within a three-year period (2009-2012) the designated consumers try to reduce their energy intensity according to their target.

Trading phase: Those consumers who exceed their target SEC will be credited tradable energy permits. These permits can be sold to designated consumers who failed to meet their target. Designated Consumers who fail to achieve their target have to compensate this failure by buying permits. If they fail to do either of this, they may have to pay penalties.

The energy consumption reported by designated consumers is based on audit by any of the BEE accredited agencies. BEE may verify correctness of reported values.