The Energy Efficiency Conservation Act 2024 (EECA) was officially enforced on 1 January 2025.  Under the act, industries or commercial buildings consuming equal or more than 21,600 GJ/y of energy in one year are known as the ‘Energy Consumer’ and are required to:

1. 1. Appoint a Registered Energy Manager (REM)
   2. Develop and implement Energy Management System (EnMS)
   3. Submit energy efficiency and conservation report
   4. Conduct mandatory energy audit every 5 years (energy audit & energy audit report)

EECA Important Timeline 

Figure 1 shows the important timeline for EECA implementation for energy consumers.

Figure 1. Important EECA timeline  for energy consumers.

Upon receiving a notice from the Energy Commission (EC), which takes effect 12 months after the enforcement of the Energy Efficiency and Conservation Act (EECA), energy consumers must appoint a Registered Energy Manager (REM) within three months. Once the REM is appointed, energy consumers have 12 months to establish and implement an energy management system.

Additionally, within 12 months of receiving the notice, energy consumers must conduct an energy audit with the assistance of a Registered Energy Auditor (REA). Furthermore, within 30 days after completing the first year of REM appointment, consumers are required to submit the annual Energy Efficiency and Conservation Report (EECR).

What are the penalties for not complying with EECA for the Energy Consumer?

List of penalties for noncompliance of EECA by the Energy Consumer:

1. 1. Failure by the Energy Consumer to appoint REM – Fine not exceeding RM50,000.
   2. Failure of REM to comply with REM duties – Fine not exceeding RM20,000.
   3. Failure by the Energy Consumer to comply with the EnMS requirement – Fine not exceeding RM20,000.
   4. Failure by the Energy Consumer to comply with the EE&C Report requirement – Fine not exceeding RM50,000.
   5. Failure by the Energy Consumer to comply with the Energy Audit requirement – Fine not exceeding RM50,000.

Recommendation for EECA Preparations 

To prepare for EECA, following are a few recommendations:

1. 1. Get your top management to understand EECA requirements.
   2. Begin to collect energy data and install sub-meters.
   3. Begin to develop an energy management system (EnMS) for your company. Either send your company personnel to be trained on how to develop EnMS, or engage REM or consultants that can help your company to develop EnMS.  The two most widely used EnMS in Malaysia are ISO50001 and EMGS. However, following the bare requirements of EnMS by EC is also sufficient.
   4. Utilize the Energy Audit Conditional Grant (EACG) from SEDA to develop the Energy Audit Report. The EACG can be applied until the end of 2025 (based on available quota).  The EACG Energy Audit report can be accepted for submission to ST provided it is approved by the Registered Energy Auditor (REA).
   5. Send your company personnel for REM training organised by Registered Training Institution (RTI).
   6. Appoint external REM while waiting for your company personnel to obtain their REM Type 1 or Type 2 certification.

How can we help?

Optimal Systems Engineering (OPTIMISE) provides EECA-related services including EECA awareness for top management, development and capacity building related to REM, EnMS and energy audit.  OPTIMISE also offers various training courses to help your company prepare for the EECA (see the training list here).  If you need further info, please fill in the OPTIMISE Inquiry Form.  

References:

1. 1. Energy Efficiency and Conservation Act 2024
   2. Energy Efficiency & Conservation Regulations 2024
   3. GP/ST/No.44/2024: Guidelines on Ascertaining Energy Consumer
   4. GP/ST/No.47/2024: Guidelines on Functions and Duties of REM
   5. Guide 1: Guide On Registration of Energy Manager. 
   6. Guide 2: Guide On Registration of Energy Auditor.
   7. Guide 3: Guide On Registration of Training Institution