5 Key Responsibilities
of a Registered Energy Manager in Malaysia
Reading Time: Approximately
7-8 minutes
Key Takeaway: Malaysia's
Energy Efficiency and Conservation Act (EECA) 2024, which became law on January
1, 2025, has reshaped energy management for many businesses. If your company is
a significant energy user, you might be wondering about the new requirement to
appoint a Registered Energy Manager (REM). Understanding the 5 Key
Responsibilities of a Registered Energy Manager in Malaysia is vital not just
for staying legal, but for actively boosting your business's bottom line.
Problem: The new EECA 2024 is
in effect, and you've heard that certain companies need a "Registered
Energy Manager." But what does that even mean for your business? It
can feel confusing trying to figure out if this applies to you and what such a
person actually does.
Agitate: Ignoring this new law
isn't an option. Failing to understand and meet the requirements could lead to
big fines and missed chances to save a lot of money on energy. You don't want
to be caught off guard when the Energy Commission comes knocking.
Solve: This guide will break
down the 5 Key Responsibilities of a Registered Energy Manager in Malaysia in
simple terms. We'll show you exactly what this role involves, why it's so
important, and how it can help your company save money, boost its reputation,
and easily comply with the new law.
Summary
Malaysia's Energy Efficiency
and Conservation Act (EECA) 2024, launched on January 1, 2025, requires certain
"Energy Consumers" to hire a Registered Energy Manager (REM). Your
business is an "Energy Consumer" if it uses 21,600 Gigajoules (GJ) or
more of total energy (like electricity and natural gas) in any 12 months. The 5
Key Responsibilities of a Registered Energy Manager in Malaysia include:
collecting and analyzing energy data, setting up and monitoring an Energy
Management System (EnMS), preparing official Energy Efficiency &
Conservation (EE&C) reports, making sure all report information is
accurate, and advising on energy-saving steps while watching their progress.
Failing to appoint a REM when needed can result in fines up to RM50,000.
1. What's This New
Energy Law All About? (EECA 2024)
Malaysia has launched an
important new law called the Energy Efficiency and Conservation Act (EECA)
2024. This law started on January 1, 2025. Its main goal is to help
Malaysia use less energy and be more efficient. It wants to stop energy waste
and move the country towards being "carbon neutral" by the year 2050.
This means Malaysia wants to balance out the carbon it puts into the air with
the carbon it takes out.
This new law is a big change
from older energy rules. It covers more types of energy, not just electricity,
and it applies to many businesses and even large buildings. One of the most
talked-about parts of this law is the need for some companies to hire a Registered
Energy Manager (REM).
So, for business owners and
managers in Malaysia, a big question is: do you actually need to hire one of
these managers? And if so, what exactly do they do? That's what we'll explore
as we look at the 5 Key Responsibilities of a Registered Energy Manager in
Malaysia.
2. Is Your Company an
"Energy Consumer"?
The EECA 2024 doesn't apply to
every single business in Malaysia. It's really aimed at the bigger energy
users. The law calls these big users "Energy Consumers."
How do you know if your
company is an "Energy Consumer"?
It's pretty simple: if your
business uses a lot of energy over a year, you'll likely be called an
"Energy Consumer." The law sets a specific amount:
- Your company is an "Energy
Consumer" if its total energy use in any 12 months (a full year) is 21,600
Gigajoules (GJ) or more.
- What's a Gigajoule (GJ)?
It's just a way to measure energy. To give you an idea, 21,600 GJ is
roughly the same as having an electricity bill of about RM 2.4 million
in a year, or a natural gas bill of about RM 1 million in a year.
- This total energy use includes
everything: electricity from TNB, natural gas you might use in factories,
diesel for your machines or vehicles, and even things like steam or
chilled water if your company buys them.
- How will you find out?
The Energy Commission (EC) is the government body that oversees this law.
They will keep an eye on energy use data. If your company meets the 21,600
GJ limit, the EC will send you an official written letter saying
that you are now an "Energy Consumer" under the EECA 2024.
If you get that letter, then
yes, your company most likely needs to hire a Registered Energy Manager.
Once you receive that official
notice, you typically have about three months to get a Registered Energy
Manager on board. This is why it's super important to understand these rules
now, so you're not rushing at the last minute and risking problems.
3. Who is a Registered
Energy Manager (REM)?
A Registered Energy Manager
(REM) is a special kind of expert who is officially recognized and
registered by the Energy Commission (EC). They have been trained and
certified to help companies manage their energy wisely.
Can anyone be a REM? No,
they need to meet certain requirements. They usually have a background in
engineering or a related field, and they complete special training and pass
exams to get registered with the EC.
How can your company get a
REM?
You have two main ways:
- 1. Hire an internal REM (one of your own
staff):
- You can choose to train one of your
current employees to become a Registered Energy Manager. This person
would then work full-time for your company, focusing on energy
management.
- Or, you could hire a new employee who is
already a registered REM.
- An in-house REM can even help other
companies that are part of the same big company group (up to 7 other
related companies).
- 2. Hire an external REM (from another
company):
- If you don't have someone in your company
who can become a REM, or if you prefer expert help from outside, you can
hire a special energy consulting company (often called an Energy Service
Company, or ESCO). They will assign one of their certified REMs to work
with your company.
- For the first time you hire an external
REM, the contract usually can't be for more than three years from the
date you got the EC's notice. This is to encourage companies to
eventually build their own internal energy management skills.
The EECA 2024 even talks about
two types of REMs:
- REM Type 1:
This REM knows a lot about energy management systems and how to audit and
save electricity.
- REM Type 2:
This REM has all the knowledge of Type 1, plus they are experts in
auditing and saving heat or thermal energy (like from steam or hot water
systems). You'd usually need a Type 2 REM if your company uses a lot of
thermal energy, especially if it's over 50,000 GJ/year.
Knowing these options and the
different types helps you figure out the best way for your company to answer: Are
these the 5 Key Responsibilities of a Registered Energy Manager in Malaysia?
Yes, and they are crucial for your company's energy future.
4. The 5 Key
Responsibilities of a Registered Energy Manager in Malaysia
Now let's get into the most
important part: what exactly does a Registered Energy Manager (REM) do once
they are appointed? Their job is super important for your company to save
energy, save money, and follow the law.
Here are the 5 Key
Responsibilities of a Registered Energy Manager in Malaysia:
- 1. Collecting and Analyzing Energy Use
Data:
- Think of this as being the company's
energy detective. The REM's first big job is to gather all the details
about how much energy your company uses. This means looking at all your
energy bills – electricity, natural gas, diesel, even steam or chilled
water if you buy them.
- They need to collect data for at least a
full year (12 months) before they started, and then keep collecting it
every day, week, or month.
- Why? So they can see how your energy use
changes over time. They look for patterns, like when you use the most
energy, and when you might be wasting it. They'll compare your current
use to how much you used before (a "baseline") to see if you're
improving. This helps them find the biggest areas where you can save
energy.
- 2. Making Sure the Energy Management
System (EnMS) is Working:
- An Energy Management System (EnMS)
is like a playbook for how your company manages its energy. It's a set of
rules, plans, and ways of working that help you keep track of energy, set
goals to save it, and make sure you're always getting better.
- The REM is responsible for making sure
this system is created and put into action properly. They'll help your
company set energy goals, like reducing electricity use by 10% this year.
- They also monitor the system constantly.
This means checking that your company's "Energy Management
Committee" (a group of people in your company focused on energy)
meets regularly (at least four times a year). They also make sure that
top managers review the energy system at least once a year. This helps
keep everyone focused on saving energy.
- 3. Preparing the Official Energy
Efficiency and Conservation (EE&C) Report:
- Every year, your company needs to send a
special report to the Energy Commission (EC). This is called the Energy
Efficiency and Conservation (EE&C) Report.
- The REM is in charge of putting this
report together. It's a summary of everything your company did regarding
energy management that year. It shows:
- How much energy you used.
- How well your EnMS worked.
- What energy-saving projects you started.
- The REM has to make sure this report
follows all the rules and formats set by the EC. It's a very important
document for showing your company's compliance.
- 4. Making Sure All Report Information is
Accurate:
- This responsibility is super critical.
The REM must double-check that all the numbers and information in the
EE&C Report are correct and trustworthy.
- They do this by comparing the report's
numbers with your actual energy bills, invoices for fuel, records of
equipment maintenance, and any energy audit reports (which are done by a
separate expert, a Registered Energy Auditor).
- Why is this important? Because false or
incorrect information can lead to penalties and makes it harder for your
company to truly understand its energy use. The REM ensures that the
reported data truly matches what's happening on the ground in your operations.
- 5. Advising on Energy-Saving Measures and
Watching Their Progress:
- The REM isn't just about collecting data
and writing reports. They are also like a consultant for your company's
energy future.
- They will use the information from energy
audits (which might be done by a Registered Energy Auditor) to suggest
specific ideas for saving energy. This could be anything from changing to
more efficient light bulbs, upgrading old air conditioners, or finding
ways to recycle heat in a factory.
- They don't just give advice; they also
keep an eye on how these energy-saving projects are going. They monitor
if the projects are actually saving energy as much as expected and if
they are on track. This helps make sure your company gets a good return on
its investment in energy efficiency.
These 5 Key
Responsibilities of a Registered Energy Manager in Malaysia show that a REM
is a very active and important part of making your company more
energy-efficient and compliant with the new laws. They are like the captain of
your company's energy-saving ship!
7. Why You Should Care
(Beyond Just Following the Law)
You might be thinking,
"Okay, so I have to hire a REM to avoid fines." And yes, avoiding
fines is a very good reason! The Energy Commission can give fines of up to RM50,000
for not having a REM when you're supposed to.
But having a Registered Energy
Manager brings many other big benefits to your company, even more than just
avoiding trouble:
- Save Big Money:
This is probably the best part for your business. A REM's whole job is to
find ways for your company to use less energy. When you use less energy,
your electricity bills, natural gas bills, and other fuel costs go down.
These savings can be huge and can quickly cover the cost of hiring a REM.
It's like finding money you didn't know you had!
- Be a "Green" Company:
People today care a lot about businesses that are kind to the environment.
Having a REM and actively saving energy shows that your company is serious
about being "green" and responsible. This can make your company
look good to customers, investors, and even employees who want to work for
a company that cares.
- Stronger Business:
When you use energy efficiently, your business becomes stronger and more
prepared for the future. You're less affected if energy prices go up, and
you're better ready for new environmental rules that might come later.
- New Opportunities:
Being energy-efficient can open new doors. Some government grants or
special loans are only available to companies that are working to reduce
their energy use. A REM can help you find and apply for these. Also, some
big customers might prefer to work with suppliers who are
energy-efficient.
- Better Operations:
When a REM looks closely at your energy use, they often find ways to make
your machines and processes work better overall. This can lead to less
downtime for equipment and smoother operations in your factory or
building.
- Smart Decisions:
The REM gathers a lot of facts and figures about your energy. This helps
your company's leaders make smarter decisions about where to invest money
to get the most energy savings.
So, while understanding the 5
Key Responsibilities of a Registered Energy Manager in Malaysia is
important for following the law, it's really about making your business more
profitable, more respected, and ready for the future. It's an investment that
pays off!
In summary, Malaysia's EECA
2024 makes it compulsory for "Energy Consumers" (businesses using
21,600 GJ/year or more) to appoint a Registered Energy Manager (REM). The 5 Key
Responsibilities of a Registered Energy Manager in Malaysia are crucial:
collecting and analyzing energy data, implementing and monitoring an Energy
Management System, preparing annual EE&C reports, ensuring data accuracy in
those reports, and advising on and tracking energy-saving measures. Failing to
meet this requirement can lead to fines of up to RM50,000. Beyond avoiding
penalties, a REM is a valuable asset, helping your business achieve significant
cost savings, enhance its reputation, and prepare for a sustainable future by
turning energy efficiency into a competitive advantage.
Are you an "Energy
Consumer" under the EECA 2024, or do you simply want to boost your
company's energy efficiency? Don't risk non-compliance or miss out on potential
savings. Let our experts guide you through the process of understanding your energy
consumption and the requirements for appointing a Registered Energy Manager.
WhatsApp or call us today at 0133006284 for a comprehensive consultation!
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