EECA 2024 - FAQs

Find answers to Energy Efficiency Conservation Act (EECA) 2024 queries and get the information you need quickly.

Coverage & Applicability

Who is covered under the Energy Efficiency and Conservation Act (EECA) 2024?

EECA 2024 applies to regulated persons and facilities as prescribed, including energy consumers whose annual energy consumption meets or exceeds the prescribed threshold, and designated buildings subject to building energy performance requirements.

The Act provides thresholds (commonly referenced thresholds include 21,600 GJ/year and 50,000 GJ/year, subject to the applicable category and regulatory notice). Entities should refer to the applicable notice and implementing requirements issued by the regulator.

Threshold assessment is generally based on total energy consumption, which may include electrical energy and thermal energy (e.g., fuels used for heat generation or process use), including renewable energy consumed on-site. Specific inclusions/exclusions should follow the regulator’s reporting guidance.

A facility may be subject to EECA 2024 if its energy consumption and activities meet the prescribed criteria and thresholds, regardless of whether it is a generation facility or an energy user. Applicability is determined by the regulatory framework and the regulator’s notice. 

Yes, if they both exceed EECA threshold. Doing so allow the energy consumer to synergise their resources as one entity. 

No, if they are both below EECA threshold. Combining may result in the facility’s consumption to exceed EECA threshold. 

NEC scenario 1. Energy use without conversion may be deducted from the threshold calculation. For example, if a facility acts as an energy reseller and purchases electricity from TNB, then resells a portion of it without any form of conversion; the energy sold to its clients should be excluded from the reseller’s total energy input. 

NEC scenario 2. Energy use with conversion may not be deducted from the threshold calculation. For example, if a facility purchases natural gas from Gas Malaysia and converts it into steam or electricity for resale, the energy sold to its clients must still be included in the reseller’s total energy input. 

Roles and Appointments (REM/REA/Other Service Providers)

What is a Registered Energy Manager (REM)?

A Registered Energy Manager (REM) is the competent person appointed to lead energy management implementation and reporting obligations under EECA 2024, including preparation and submission of required annual reporting. 

A Registered Energy Auditor (REA) is the competent person appointed to conduct the energy audit in accordance with the prescribed methodology, scope, and submission requirements under EECA 2024.

A REM is responsible for organisational energy management and reporting compliance, while an REA is responsible for conducting the energy audit. These are distinct functions with different competency requirements.

As a governance principle, the auditor function should remain independent. While specific arrangements depend on the applicable requirements, organisations are generally expected to avoid conflicts of interest and to ensure audit independence.

Where permitted, internal appointment may be possible; however, independence and competence requirements must be satisfied. Organisations should ensure the audit outcome remains credible and meets the regulator’s acceptance criteria.

An ESCO or technical service provider may support implementation of energy saving measures, energy monitoring, and audit preparation. The acceptance of audit submissions remains subject to compliance with the prescribed requirements and the involvement of appropriately registered/recognised competent persons.

Audit and Reporting Requirements

What are the main duties of an energy consumer under the regulations?

Energy consumers whose energy usage meets the specified threshold are required to: 

  • Appoint a Registered Energy Manager (REM) 
    The REM is responsible for implementing and monitoring the Energy Management System (EnMS), preparing energy efficiency and conservation reports, and advising on energy-saving measures. 
  • Develop and implement an Energy Management System (EnMS) 
    The EnMS must be established within the prescribed period and in accordance with the guidelines issued by the Commission. 
  • Submit Energy Efficiency and Conservation Reports 
    The REM must prepare and submit reports detailing energy consumption, the status of the EnMS, and proposed improvement measures. 
  • Conduct regular energy audits 
    Energy audits must be carried out periodically by a Registered Energy Auditor (REA), and the audit report must be submitted to the Commission. 

Yes. Regulated entities are generally required to submit annual Energy Efficiency and Conservation Report in the prescribed format and within the prescribed timelines.

Energy audits are typically required on a periodic basis (commonly referenced as once every five years), in accordance with the applicable regulatory requirements.

Where a regulatory notice is issued, the first audit is generally required within the timeline specified in that notice (commonly referenced as within one year). The exact deadline is determined by the notice and applicable guidance.

It may be accepted if it meets the prescribed scope, methodology, reporting format, and recency requirements. Acceptance is subject to the regulator’s review and confirmation.

Where a detailed technical audit is prescribed, a walk-through assessment may not be sufficient. The audit must meet the depth and documentation requirements specified by the regulator.

Spreadsheets may be used as a basic approach provided the organisation can demonstrate sufficient data integrity, traceability, and consistency with metered/utility records. Organisations are encouraged to adopt appropriate metering and data management practices.

Energy Management System (EnMS) and ISO Standards

Is ISO 50001 certification mandatory under EECA 2024?

ISO 50001 certification is generally not mandatory unless specifically prescribed. However, regulated entities are expected to implement an Energy Management System (EnMS) that meets the prescribed requirements and demonstrates continual improvement.

Yes. Organisations may integrate energy management requirements into existing management systems and governance structures, provided the EECA compliance requirements are fully met.

Regulated entities are generally required to identify and evaluate energy saving measures through audits and management review. Implementation expectations may vary by requirement; organisations should document decisions, prioritise feasible measures, and report progress as required.

Buildings and Energy Labels (PICB and Designated Buildings)

What is a “Person in Charge of Building (PICB)”?

The PICB is the party responsible for building-level compliance requirements, including building energy performance obligations and any labelling requirements applicable to designated buildings.

Building energy labelling obligations typically apply to designated categories of commercial buildings (commonly office buildings), subject to phase-based implementation. Industrial facilities are generally addressed under energy consumer obligations rather than building labelling, unless specifically designated.

Applicability depends on the designated building categories prescribed by the regulator. If not designated, the requirements may not apply; entities should verify against the latest designation list and guidance.

Responsibilities may differ depending on whether the requirement concerns an energy consumer (meter/account-based) or building obligations (whole-building performance). The PICB typically manages building-level obligations, while tenants may have obligations if they meet the energy consumer criteria.

Baseline, Performance Indicators, and Internal Audit

What baseline period should be used for energy performance measurement?

A baseline is typically established using a representative historical period (commonly one year), adjusted where necessary for abnormal conditions or significant operational changes, consistent with prescribed guidance.

Yes. Where significant changes materially affect energy consumption patterns, baseline adjustment or re-basing may be justified. The organisation should document the rationale and method.

Yes. Organisations may apply multiple specific energy consumption (SEC) metrics or other appropriate indicators to reflect differing production drivers, provided the approach is consistent, documented, and auditable.

Internal audits and management reviews should be conducted at a frequency sufficient to ensure effective implementation and continual improvement (commonly annually), in line with the EnMS requirements and organisational governance.

Compliance, Data Integrity, and Enforcement

How important is consistency between reported data and utility/meter records?

Data integrity and traceability are essential. Reported energy data should be consistent with metered records and verifiable source documents. Inaccurate reporting may result in regulatory follow-up. 

Accountability generally rests with the regulated entity and responsible persons as prescribed. Organisations should maintain clear appointment letters, records of actions taken, and evidence of cooperation to demonstrate compliance.

Penalties are prescribed under the Act and associated regulations. Applicability depends on the specific obligation breached and the classification of the regulated entity as determined under the regulatory framework.