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The
Ultimate Guide to the EECA 2024: What Every Malaysian Business Needs to Know
Estimated reading
time: 10 minutes
Feeling overwhelmed
by the new Energy Efficiency and Conservation Act (EECA) 2024? You're not
alone. Many Malaysian businesses are scrambling to understand what this new legislation
means for their operations, worried about the steep penalties and confusing
requirements. Navigating dense legal acts is a headache, and with the
enforcement date looming, the pressure is on. Non-compliance could lead to
significant fines and disrupt your business. But what if you could turn this
challenge into an opportunity? This guide simplifies the EECA 2024, giving you
a clear, jargon-free roadmap to not only comply but also boost your energy
efficiency and save money.
Your
Quick Guide to the EECA 2024
The Energy
Efficiency and Conservation Act 2024 (Act 861) is a new law aimed at promoting
energy efficiency in Malaysia. It applies to Peninsular Malaysia and the
Federal Territory of Labuan. Here’s who and what it covers:
●
Large Energy Consumers: If your business consumes 21,600
gigajoules (GJ) or more of energy over 12 consecutive months, this Act applies
to you.
●
Specific Buildings: The Act applies to certain types of
buildings, starting with office buildings that have a Gross Floor Area (GFA) of
8,000 square meters and above.
●
Energy-Using Products: Manufacturers and importers of
specific products like air conditioners, refrigerators, fans, lamps, and
televisions must comply with new energy efficiency standards and labeling
requirements.
Key requirements
include appointing a Registered Energy Manager (REM) , developing an Energy
Management System (EnMS) , conducting regular energy audits , and submitting
reports to the Energy Commission. Buildings must display an energy intensity
label , and energy-using products need an energy efficiency rating label before
being sold.
The
Ultimate Guide to the EECA 2024: What Every Malaysian Business Needs to Know
The EECA 2024 is
designed to regulate the efficient use of energy across various sectors. Understanding
your obligations is the first step toward compliance and leveraging the new law
to your advantage. Here’s a detailed breakdown.
1.
Are You an "Energy Consumer" Under the Act?
The Act has
specific criteria to identify which businesses fall under its regulations. You
are considered a designated "energy consumer" if your operations meet
a certain energy consumption threshold.
●
The Threshold: The primary rule is based on your
energy use. Any business that consumes energy equal to or more than 21,600
gigajoules (GJ) over any 12 consecutive months is covered by this Act.
●
Determining Your Consumption: Your total energy consumption is
calculated by adding up all the energy you use, whether it's electricity from
the grid, natural gas, or even energy generated on-site from sources like solar
photovoltaic systems. The Energy Commission provides specific conversion
factors to calculate everything in gigajoules (GJ). For example, 1 kWh of
electricity is equivalent to 0.0036 GJ.
●
What's Excluded: The calculation for the threshold
does not include energy resources used as "feedstock" (raw materials
in a production process) or energy that you acquire just to sell or distribute
to others without converting it.
●
Official Notification: If you meet the criteria, the Energy
Commission will issue a written notice confirming that you are a designated
energy consumer under the Act.
●
Combining Facilities: If you have multiple facilities (like
different plants or factories) that are related corporations and located within
the same compound, you may be able to combine them and treat them as a single
energy consumer. However, if they are separated by other properties, they must
be treated as separate energy consumers.
2.
Your Duties as a Designated Energy Consumer
Once you've been
identified as an energy consumer, Part III of the Act outlines several key
responsibilities you must fulfill.
●
Appoint a Registered Energy Manager
(REM): This is a critical
first step. You must appoint a certified REM within a set period. The REM is a
professional who will manage your company's energy efficiency and conservation
efforts. Their duties include:
○
Collecting
and analyzing your energy consumption data.
○
Ensuring
your company develops and implements an Energy Management System (EnMS).
○
Preparing
and verifying the accuracy of your energy efficiency and conservation reports.
○
Advising
on energy-saving measures and monitoring their implementation.
●
Develop and Implement an Energy Management
System (EnMS):
You are required to create and implement a formal EnMS. This isn't just a
suggestion; it's a legal requirement. An EnMS is a structured framework of
policies and procedures to help you track, manage, and reduce your energy
consumption. The key components are:
○
Establish Commitment: This starts at the top. Your
company's management must endorse an official energy policy and form an Energy
Management Committee, led by the REM.
○
Assess Performance: Conduct assessments to understand
your current energy use. This involves analyzing data, establishing an energy
baseline, and benchmarking your performance against industry standards.
○
Create an Action Plan: Based on your assessments, develop a
plan that sets clear targets and outlines technical strategies and timelines
for achieving them.
○
Implement the Plan: Put your plan into action. This
includes retrofitting equipment, implementing new operational controls, raising
awareness among employees, and conducting training.
○
Measure and Review: Continuously monitor your progress,
evaluate the results of your initiatives, and conduct regular management
reviews to ensure the EnMS is effective and to find new opportunities for
improvement.
●
Submit an Energy Efficiency and
Conservation Report:
Your REM must prepare a detailed report that includes information about your
EnMS, your total energy consumption, and proposed measures to improve
efficiency. This report must be submitted to the Energy Commission within a
specified timeframe.
●
Conduct an Energy Audit: You must periodically have a formal
energy audit conducted by a Registered Energy Auditor (REA). This is a
systematic evaluation of your energy use to identify opportunities for
improvement.
●
Submit an Energy Audit Report: After the audit, a report prepared by
the REA must be submitted to the Energy Commission. The report should detail
the findings and recommend specific Energy Saving Measures (ESMs). In some
cases, if you can demonstrate significant improvements, you may apply for an
exemption from submitting subsequent audit reports.
3.
Obligations for Specific Buildings (Starting with Offices)
Part IV of the Act
focuses on buildings. Initially, this applies to office buildings with a Gross
Floor Area (GFA) of 8,000 square meters or more.
●
Energy Intensity Label: The person responsible for the
building (owner or manager) must apply to the Energy Commission for an
"energy intensity label. This label must be displayed in a conspicuous
part of the building at all times. The label shows the building's energy
efficiency rating on a scale of 1 to 5 stars. Tampering with or forging this
label is a serious offense.
●
Energy Intensity Performance: Building managers must ensure that
the building's energy performance meets the energy efficiency rating set by the
regulations. The Building Energy Intensity (BEI) is calculated by dividing the
total annual energy consumption (in GJ) by the GFA (in m²).
●
What if Your Building Doesn't Comply? If the Energy Commission finds that a
building's performance does not meet the required rating, it will issue a
notice of non-compliance. The building manager must then:
1.
Conduct an Energy Audit: Appoint a Registered Energy Auditor
(REA) to conduct a thorough energy audit of the building.
2.
Submit an Audit Report and Improvement
Plan: Submit the audit
report along with an "energy efficiency improvement plan" to the
Commission within one year of receiving the non-compliance notice.
3.
Implement the Plan: Once the improvement plan is approved
by the Commission, the building manager must implement it to improve the
building's energy performance.
●
Exemption: These requirements do not apply if
the person responsible for the building is also a designated energy consumer
under the Act for that same building.
4.
Rules for Manufacturers and Importers of Energy-Using Products
Part V sets out the
rules for products that consume energy. The goal is to ensure that only
efficient products are available in the market. This applies to a wide range of
items, including:
●
Air
conditioners
●
Refrigerators
●
Domestic
fans
●
Lamps
●
Televisions
●
Washing
machines
●
Microwave
and electric ovens
●
Rice
cookers
●
Freezers
Here are the key
obligations:
●
Energy Efficiency Labeling: No one can sell, advertise, or lease
these products unless they are affixed with an official energy efficiency
rating label issued by the Energy Commission. This label displays a 1 to 5-star
rating to inform consumers about the product's efficiency.
●
Registration of Manufacturers and
Importers: Before
distributing these products, manufacturers and importers must register with the
Energy Commission.
●
Energy Efficiency Certification: For each class of product, the
registered manufacturer or importer must apply for a certificate of energy
efficiency. To get this certificate, the product must meet the Minimum Energy
Performance Standards (MEPS) and pass the required testing methodologies
outlined in the guidelines. The certificate is valid for one year and must be
renewed.
●
Record Keeping: Registered manufacturers and
importers must keep performance test reports and other related documents for
seven years.
●
Cancellation: The Commission can cancel a
registration or efficiency certificate if a manufacturer violates the rules,
provides false information, or if their product no longer meets the standards. If
a certificate is canceled, the product must be recalled from the market.
5.
Becoming a Registered Professional
The EECA 2024
creates new professional roles. The Act and its guidelines set clear
requirements for individuals and organizations who want to become registered
service providers.
●
Registered Energy Manager (REM):
○
Who Can Apply? Applicants must be a Malaysian
citizen with a recognized degree or diploma in science, engineering,
technology, or architecture, coupled with relevant work experience. Professional
Engineers, Technologists, and Architects are also eligible.
○
Training is a Must: Most applicants must complete
mandatory training courses for REM First Type (covering electrical and
mechanical systems) and REM Second Type (covering thermal energy systems) from
a Registered Training Institution (RTI).
○
Practicing Certificate: After registration, REMs need a valid
practicing certificate, which must be renewed. 74Renewal requires completing Continuous
Development Programs (CDP) to stay updated.
●
Registered Energy Auditor (REA):
○
Who Can Apply? The qualifications are similar to
those for an REM, generally requiring a degree or diploma in a technical field
with at least two years of work experience, or being a registered REM Second
Type.
○
Experience Required: Applicants must have been involved in
at least two energy audits approved by the Commission.
○
Process: The application process may include
an interview and examination to assess the candidate's knowledge.
●
Registered Training Institution (RTI):
○
Who Can Apply? Training institutions must be a
legally established company or body in Malaysia.
○
Two Types of RTI: An institution can register to either
(1) conduct training courses for people who want to become REMs, or (2) provide
Continuous Development Programs (CDP) for existing REMs.
○
Strict Requirements: RTIs must have a complete training
syllabus approved by the Commission, a pool of certified trainers (including
certified REMs), proper facilities, and established management procedures for
training and examination.
○
Application & Renewal: The application involves a review by
the Commission, a possible site visit, and payment of fees. Practicing
certificates must be renewed, and RTIs are subject to compliance audits.
The EECA 2024 marks
a new era for energy management in Malaysia. While it introduces new compliance
requirements, it also presents a valuable opportunity for businesses to enhance
their efficiency, reduce operational costs, and contribute to a more sustainable
future. Understanding your obligations is the first step. The next is taking
action.
Ready to navigate
the EECA 2024 and unlock energy savings for your business? Don't wait. For
expert guidance and tailored solutions, WhatsApp
or call us today at 013-3006384. Let's make your business a leader in
energy efficiency.
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