Energy Efficiency and Conservation Act 2024 (Act 861): Responsibilities of Energy Consumers
In a significant stride towards sustainable energy use, Malaysia has enacted the Energy Efficiency and Conservation Act 2024 (Act 861). This comprehensive law is designed to regulate energy consumption, promote energy efficiency, and mitigate energy wastage. This Act is applicable in Peninsular Malaysia and the Federal Territory of Labuan[1] with the Energy Commission[2] as the regulator overseeing its implementation.
The Act targets major energy consumers with annual energy bills exceeding RM 2.4 million for electricity or RM 1 million for natural gas, requiring these organizations to conduct mandatory energy audits and implement continuous energy efficiency improvements. Additionally, office buildings with an area of 8,000 m² or more must cap their Building Energy Intensity (BEI) at a maximum of 250 kWh/m²/year, ensuring stricter energy management and conservation practices[3]. The Energy Efficiency and Conservation Act 2024 was officially assented to on 14 November 2024 and gazetted on 26 November 2024. This legislation aims to ensure a structured approach towards energy conservation across various sectors, laying down specific duties for energy consumers. It has officially come into force on the 1st of January 2025.
Key Responsibilities for Energy Consumers
| No. | Theme
|
Explanation |
| 1. | Appointment of registered Energy Manager | Under Section 5 of the Act, energy consumers surpassing a certain threshold of energy consumption are required to appoint a registered energy manager. This manager is responsible for:
(a) collecting and analysing energy consumption data; (b) implementing and monitoring energy management systems; and (c) preparing and submitting energy efficiency and conservation reports.
|
| 2. | Development of an Energy Management System | Section 6 mandates consumers to develop and implement an energy management system. This system should align with guidelines provided by the Energy Commission and aim to optimize energy use. Non-compliance can lead to penalty up to RM50,000.00.
|
| 3. | Energy Audits and Reporting | Section 8 and 9 stipulates that energy consumers must conduct regular energy audits and submit detailed reports. These audits, carried out by registered energy auditors, assess energy consumption patterns and recommend efficiency improvements. Failure to comply may face fine up to RM50,000.00
|
| 4. | Adherence to Energy Performance Standards | Section 17 to 23 states that the Act emphasizes compliance with the prescribed minimum energy performance standards for energy using products.
Consumers and business must ensure that all equipment and appliances meet these standards. Which are verified through energy efficiency rating labels. Violation could lead to fines and potential imprisonment for severe breaches.
|
| 5. | Implementation of Energy Efficiency Plans | Sections 13 to 15 mandate the development and execution of energy efficiency improvement plans for buildings, which must be based on energy audit reports and approved before implementation.
However, Section 16 clarifies that buildings are exempt from these specific requirements if the person in charge is already categorized as an energy consumer under the Act. This provision streamlines compliance by preventing duplicate obligations for those who are already managing energy consumption under the broader consumer responsibilities outlined in the Act.
|
Benefits of Compliance
By adhering to the Act, energy consumers not only contribute to national energy conservation goals but also benefit from reduced energy costs, improved conservation goals and benefit from reduced energy costs and improved operational efficiency.
In understanding the significant cost savings this Act will potentially compel; is by optimising energy use through the efficient management systems and audits. Businesses and consumers can reduce their energy bills. Over time, these savings can potentially offset the initial cost of implementing energy-efficient technologies and practices. We must understand that gradual changes that are everlasting are more important in this case, it may not be immediate but the effect will come through.
Implementing energy efficiency measures often leads to more streamlined operations. Energy audits and management systems help identify areas where energy is wasted. This obviously needs to be avoided at all costs because it will allow businesses to fully optimise processes, reduce downtime, and improve overall productivity. Sustainable energy practices ensure long-term benefits; that include resource conservation and reduced dependency on non-renewable energy sources. This not only supports national energy security but also positions consumers for future regulatory changes and market demands.
As large energy consumers, adhering to the provisions of this newly introduced act helps to avoid fines and other legal repercussions associated with non-compliance. This not only protects the organisation financially but also preserves its reputation and credibility.
In the light of preserving our mother nature, reducing energy consumption will contribute greatly to lower greenhouse gas emissions and playing our role in combating climate change. This will set a sense of responsibility towards being consumers that prioritises energy efficiency that will enhance the appeal to environmentally conscious consumers and stakeholders. Which arguably is a unique selling point to gain a competitive edge
Conclusion
The Energy Efficiency and Conservation Act 2024 places a proactive responsibility on energy consumers to adopt sustainable energy practices. Compliance with this law is a step towards a greener, more energy-efficient Malaysia. Energy consumers are encouraged to familiarize themselves with the Act’s requirements and take necessary actions to ensure adherence.
Author: Wan Tasnima
References:
[1] https://www.tnb.com.my/assets/newsclip/01012025d1.pdf
[2] https://www.st.gov.my/eng/microsites/index/19/106
[3] https://www.greenquarter.biz/ideas-stories/malaysias-energy-efficiency-and-conservation-act-eeca-what-to-expect-in-2024/
Published Date: 8 Jan 2025