Malaysia passes energy saving bill in the House of Representatives

The Energy Efficiency and Conservation Bill 2023 was passed by the House of Representatives in Malaysia on October 11, 2023. The bill targets large consumers such as factories and commercial facilities, office buildings, and energy-using products. Large consumers are required to appoint an energy manager, implement an energy management system, submit energy efficiency and conservation reports, and conduct audits. Office buildings are required to conform with energy efficiency ratings and post energy intensity labels. For energy-using products, energy labels must be affixed after complying with requirements such as MEPS.

The original text of the bill can be downloaded from the following URL:
https://www.parlimen.gov.my/bills-dewan-rakyat.html?uweb=dr&lang=en

The bill applies to the following:

• Energy consumers whose annual energy consumption exceeds a predetermined threshold (hereinafter referred to as large consumers)
• Office buildings
• Energy-using products (as specified in guidelines issued by the Energy Commission)

Obligations of large consumers

• Appointment of a registered energy manager
  A Registered Energy Manager must be appointed to collect and analyze data such as energy consumption, monitor the implementation of the energy management system, prepare energy efficiency and conservation reports, and recommend and monitor the implementation of energy efficiency and conservation measures. The “Registered Energy Manager” shall be a person who has been certified based on the bill.
• Development and implementation of an energy management system
  An energy management system must be developed and implemented in accordance with the guidelines.
• Submission of energy efficiency and conservation reports
  Energy efficiency and conservation reports prepared by the Registered Energy Manager must be submitted to the Energy Committee. The energy efficiency and conservation report shall contain a description of the energy management system, the consumption of energy and energy resources and the objectives thereof, proposals for measures to improve energy efficiency, and details of energy efficiency and conservation measures implemented/to be implemented, etc.
• Implementation of energy audits and submission of reports
  Energy audits must be implemented from time to time by appointing a Registered Energy Auditor and submitting an energy audit report prepared by the Registered Energy Auditor to the Energy Committee. However, if the Committee is satisfied that energy efficiency has been improved by implementing energy efficiency and conservation measures after submitting the first energy audit report, the company will be exempted from submitting subsequent energy audit reports based on application.

Obligations of the owners/managers of office buildings

• Conformance to energy efficiency ratings
  The building’s energy intensity must conform to a predetermined energy efficiency rating (stars). If an office building owner/manager receives a notice of non-compliance for not conforming to the energy efficiency rating, he or she must appoint a Registered Energy Auditor to implement an energy audit and submit an energy audit report and energy efficiency improvement plan to the Energy Committee within one year.
• Posting energy intensity labels
  Office building owners/managers must apply to the Energy Committee for the issuance of an energy intensity label and this label must always be posted in a prominent location in the building.

Energy-using products

• Manufacturer/importer registration/acquisition of certificate of energy efficiency
  Manufacturers and importers of energy-using products must register with the Energy Committee and acquire a certificate of energy efficiency from the Energy Committee for the energy-using products they handle. Certificates of energy efficiency are issued when the product meets the predetermined Minimum Energy Performance Standard (MEPS), etc. An energy label is issued at the same time as the certificate of energy efficiency. In addition, manufacturers and importers must keep copies of energy performance test reports or evaluation documents issued by conformity assessment organizations and laboratories for 7 years from registration.
• Affixing energy labels
  An energy label must be affixed when selling, offering for sale, exhibiting, advertising, or leasing an energy-using product.

EnviX Comment

A comprehensive bill on energy conservation, which has been debated in Malaysia for a long time, has finally been submitted to Parliament (the House of Representatives) and passed. The bill is expected to be considered by the Senate later. According to various media reports, it will target large consumers with an annual energy consumption of 21,600 gigajoules or more, covering 1,500 out of 27,000 industrial consumers and 500 out of 1.7 million commercial consumers. In addition, office buildings larger than 8,000 square meters must meet at least a two-star rating (no more than 250 kilowatt-hours per square meter per year) based on the National Building Energy Label. The bill is expected to come into force one year after its promulgation, at which point consumers must implement an initial energy audit.

In addition, refrigerators, air conditioners, televisions, household fans, and lighting fixtures are currently subject to energy label regulations as energy-using products based on the Electricity (Amendment) Regulations 2013. However, guidelines for rice cookers, freezers, and microwaves, which are not specified in the Electricity (Amendment) Regulations 2013, have also been promulgated from 2020 to 2021.