Is Your Organisation Subject to EECA 2024? Here’s How to Know.

1. Why this matters

The Energy Efficiency & Conservation Act 2024 (EECA 2024) is now in force.
Starting January 2026, organisations that exceed the energy-consumption threshold may receive an official Energy Consumer Notice from the Energy Commission (EC).
This notice triggers mandatory compliance obligations.

2. The threshold that determines everything

✔ 21,600 gigajoules (GJ) in any 12-month period

If your organisation’s total energy consumption reaches or exceeds 21,600 GJ, you are considered an Energy Consumer.

This includes electricity, gas, steam, chilled water and other “energy resources”, converted using the coefficients in the Guidelines.

3. Four key scenarios that make your organisation an Energy Consumer*

Scenario A: You operate a single high-consumption facility

If your plant, mall, hotel, factory or commercial complex crosses the 21,600 GJ threshold, you are automatically in scope.

Scenario B: Multiple related business units in the same compound 

If two or more facilities belong to related corporations and operate within the same compound, they maybe treated as separate energy consumers. They may however request for their energy consumption to be combined.

If the combined total exceeds 21,600 GJ → The group is treated as one Energy Consumer.

Scenario C: Units located in different compounds

If related units sit on separate land parcels or are physically separated by other properties, each is treated individually.

A unit is only an Energy Consumer if that specific unit exceeds the threshold.

Scenario D: Exclusions that do NOT count toward the threshold

Remove the following from your calculations:

• • Onward sale/distribution of energy (e.g., if you act as a reseller)
  • Energy-resources used as feedstock (raw material in a manufacturing process)

These reductions may affect whether you cross the threshold.

4. What happens if you exceed the threshold?

If classified as an Energy Consumer, your organisation will need to:

• • Appoint a Registered Energy Manager (REM)
  • Establish an Energy Management System (EnMS)
  • Maintain detailed measurement and verification of consumption
  • Submit annual reports
  • Undergo energy audits when required

Non-compliance may result in significant penalties.

5. What you must do NOW 

Immediate Checks

• • Measure your past 12 months of energy use (convert to GJ).
  • Identify all measuring points (electricity, gas, steam, chilled water).
  • Determine whether related units in the same compound should be grouped.
  • Deduct excluded energy (feedstock + onward sales).

If you are near or above 21,600 GJ

Start preparing for compliance before notices arrive:

• • Engage a Registered Energy Manager (REM)
  • Begin documenting consumption and operational boundaries
  • Review metering/sub-metering readiness
  • Brief top management
  • Begin preparing or aligning your EnMS

6. Final Message for All Organisations

If your business consumes significant energy – industrial, commercial or large retail – you may fall within the EECA threshold even if you do not realise it yet.

Check now, plan early, and avoid being caught unprepared when the EC begins notifications in early 2026. 

As a starting point, and to gain a clearer understanding of the EECA and its implications for organisations; you are invited to attend OPTIMISE’s upcoming one-day virtual workshop on Understanding EECA and Its Impacts on Organisations on 8 December 2025. This workshop will provide a deeper dive into the Energy Efficiency and Conservation Act (EECA), its Regulations, Guidelines, and supporting Guides.  

You may also consider attending OPTIMISE Registered Energy Manager (REM) Workshops to as a pathway to becoming a Registered Energy Manager for your organisation.

Reference:

*Guideline on Ascertaining Energy Consumer by the Energy Commission [GP/ST/No.44/2024]