Malaysia has published the Energy Efficiency and Conservation Act 2024 on November 26, 2024. As the first legislation in regulating energy conservation, the Act now imposes duties such as appointment of energy managers, implementation of energy management systems etc. on energy consumers such as factories, commercial premises and office buildings. Manufacturers and importers of energy-using products will also have to meet the minimum energy performance standards (MEPS) prescribed as well as affix an energy efficiency rating label. The Act shall come into operation on a date to be appointed by the Minister of Energy Transition and Water Transformation in a later date, however it is rumored by the Energy Commission that it begins in January 2025.
Energy Consumer
Energy Consumer (a person who, for the purpose of carrying out his activity, business or trade, is supplied with energy or energy resources and consumes the energy or energy resources supplied) now bears the following duties:
- Energy manager: Appoint an energy manager, where his duties include data collection on energy consumption, ensuring implementation of energy management system, preparation of report.
- Energy management system: Establish an energy policy and energy objectives, and the processes and procedures to achieve the energy objectives.
- Report: Prepare a energy efficiency and conservation report which contains information on energy consumption, description of energy management system, proposed measures for improving energy efficiency and conservation.
- Audit: Have a registered energy auditor conduct energy audit, then submit the audit report to the Commission.
Details on the energy management system and report were not mentioned. Look out for future regulations and/or guidelines.
Office buildings
A person in charge of a building (any building or premises where energy is consumed including building or premises built or used for residential, institutional, commercial or industrial purposes) shall ensure the energy intensity performance of the building comply with the energy efficiency rating as may be prescribed. In the event of non-compliance, an energy audit is to be conducted, then submit the audit report together with an energy efficiency improvement plan to the Commission. Finally, an energy intensity label is to be displayed in a conspicuous part of the building.
Energy-using products
Under the Electricity (Amendment) Regulations 2013, five types of equipment namely refrigerator, air conditioner, television, domestic fan & lighting are listed as energy-using products, where its MEPS had energy labelling were parts of the compliance. The Act now imposes the following duties for those who wishes to sell, offer to sell, display, advertise or lease any energy-using product:
- Registration: Register to the Commission as a manufacturer or importer accompanied by a fee.
- Certificate of energy efficiency: Apply for a certificate of energy efficiency that the energy-using product conforms to its prescribed MEPS. Certificate shall be valid for one year, may be renewed.
- Record keeping: Keep related energy performance testing reports for a period of seven years.
Liability were also stipulated for each of the above duties, where among the heaviest includes a fine not exceeding RM100,000, or imprisonment for a term not exceeding two years or both.
EnviX Comment
Looking at the definition of “energy consumer” (a person who, for the purpose of carrying out his activity, business or trade, is supplied with energy or energy resources and consumes the energy or energy resources supplied), this may be interpreted as to include any type of business from any sector, which will undoubtedly bring a huge impact once the Act comes into effect. In the near future, Q&As and guidelines may be published, where hopefully there will be clarification on the definition.
Download the Act from the link below:
https://lom.agc.gov.my/act-detail.php?language=BI&act=861