The Energy Efficiency and Conservation Act 2024 (EECA), which came into force on 1 January 2025, was enacted to regulate energy consumption and promote conservation practices across Malaysia. This landmark legislation aligns with the country’s ambition to achieve carbon neutrality by 2050, addressing the urgent need for sustainable energy management.
The EECA provides a structured framework for improving energy efficiency, reducing waste and ensuring compliance with established standards. It applies to large energy consumers, specific buildings and energy-using products, outlining clear roles and responsibilities for various stakeholders. Essentially, the EECA aims to foster an energy-conscious culture while supporting environmental and economic goals.
It is important to note that the EECA only applies to Peninsula Malaysia and the Federal Territory of Labuan, while the states of Sabah and Sarawak in East Malaysia have been tasked with creating their own energy efficiency regulations.
Functions And Duties Of The Energy Commission
The Energy Commission (EC) plays a pivotal role in the implementation and enforcement of the EECA, acting as the implementing and regulatory agency. This regulatory body has been entrusted with the following key responsibilities:
(a) Advisory Role
The EC advises the Ministry of Energy Transition and Water Transformation on energy efficiency policies, ensuring they align with national goals and international commitments.
(b) Regulation and Enforcement
It recommends laws, regulations and measures for effective energy management and enforces compliance with energy efficiency standards.
(c) Promotion of Investments
By advocating private sector investments, the EC encourages the development of energy-efficient technologies and infrastructure.
(d) Target Setting and Monitoring
It establishes energy efficiency targets and monitors progress through comprehensive studies, audits and research initiatives.
(e) Publication of Information
The EC publishes reports, statistics and other relevant information to foster transparency and public awareness about energy efficiency.
Through these functions, the EC ensures the effective implementation of the EECA while fostering a collaborative approach to energy conservation.
Duties Of An Energy Consumer And A Person In Charge Of A Building
Under the EECA, energy consumers whose energy usage meets the specified threshold are required to take proactive measures to ensure efficient energy use. Similarly, the EECA imposes certain measures and obligations on persons in charge of a building including the owner of the building or any other person having the charge, management or control of a building. With the implementation of the EECA, energy usage will include the consumption of thermal energy - such as fuel, gas, and chilled water, in addition to electricity.
These measures and obligations include:
(a) Applying for an Energy Intensity Label
Energy consumers must apply to the EC for an energy intensity label to be issued in respect of the building and such energy intensity label shall at all times be displayed in a conspicuous part of the building.
(b) Appointing a Registered Energy Manager (REM)
Energy consumers must appoint a REM, who will be responsible for implementing and monitoring energy management systems, preparing energy efficiency reports and advising on energy-saving initiatives.
(c) Developing and Implementing an Energy Management System (EnMS)
Energy consumers are required to develop an EnMS within a specified timeframe, adhering to the guidelines provided by the EC.
(d) Submitting Energy Efficiency and Conservation Reports
The REM must prepare and submit detailed reports to the EC. These reports must include information on energy consumption, energy management systems and proposed improvements.
(e) Conducting Regular Energy Audits
Energy consumers must conduct periodic energy audits, which must be performed by a Registered Energy Auditor (REA). The resulting audit reports must be submitted to the EC.
Registration Of Energy Managers And Energy Auditors
The registration and certification of energy managers and energy auditors are critical components of the EECA. The following are the requirements and processes for registration:
(a) Registration Requirements
Energy managers and energy auditors must register with the EC and obtain a valid practicing certificate.
(b) Qualifications
Applicants must be Malaysian citizens who meet the prescribed qualifications and any additional criteria determined by the EC.
(c) Renewal of Certificates
Practicing certificates must be renewed periodically. Applicants for renewal are required to provide proof of participation in continuous professional development programs.
(d) Cancellation of Registration
The EC has the authority to cancel the registration of energy managers or auditors who violate the provisions of the EECA or engage in fraudulent practices.
Registration Of Training Institutions
Training institutions play a vital role in equipping energy managers and auditors with the necessary skills to meet the requirements of the EECA. The registration process for these institutions includes the following:
(a) Registration Requirements
Training institutions must be legally established entities under Malaysian law. They must also meet additional prerequisites set by the EC and have no prior convictions for fraud, dishonesty or corruption.
(b) Qualifications
Institutions must possess the required expertise to offer training courses and conduct continuous professional development programs.
(c) Renewal of Certificates
Practicing certificates for registered training institutions must be renewed periodically. Late renewal applications will incur additional fees, and renewal applications must include all prescribed documents and fees.
(d) Cancellation of Registration
The EC may cancel the registration of a training institution if it violates the provisions of the EECA, ceases operations, misuses its certificate, or engages in fraudulent activities. Once cancelled, the institution will no longer be eligible to reapply for registration under the EECA.
Registration Of Manufacturer Or Importer Of An Energy-Using Product
The EECA establishes clear requirements for the sale, distribution, and certification of energy-using products.
(a) Registration Requirements
A manufacturer or importer who intends to distribute an energy-using product must make an application for registration to the EC.
(b) Selling and Labelling Requirements
Energy-using products cannot be sold, offered for sale, displayed, advertised, or leased unless affixed with an energy efficiency rating label issued under Section 21 of the EECA.
(c) Certification of Energy Efficiency
Manufacturers or importers must apply for a certificate of energy efficiency for their products. Products must meet the testing methodologies, energy efficiency calculations, and minimum energy performance standards prescribed under the EECA.
(d) Cancellation of Registration or Certification
The EC may cancel the registration or certification of manufacturers or importers for non-compliance, misuse, or fraudulent activities.
Commentary
The EECA represents a significant step forward in Malaysia’s efforts to promote sustainable energy practices. By clearly defining the roles and responsibilities of all stakeholders, the EECA ensures a collective effort toward energy conservation and efficiency. The EC’s regulatory and enforcement powers, combined with the obligations placed on energy consumers, building managers and training institutions, create a robust framework for achieving the nation’s environmental and energy goals. As Malaysia works toward its target of carbon neutrality by 2050, the EECA serves as a cornerstone of the country’s sustainable development strategy.
20 March 2025