A Compliance Checklist for Large Energy Consumers Under EECA 2024

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A Compliance Checklist for Large Energy Consumers Under EECA 2024

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Key Takeaway: Are your energy bills high, and the thought of new government regulations adding more stress to your business? With Malaysia's Energy Efficiency and Conservation Act (EECA) 2024 now in full swing, large energy consumers can no longer ignore their energy usage. But navigating these new rules doesn't have to be confusing. This guide provides A Compliance Checklist for Large Energy Consumers Under EECA 2024, helping you understand exactly what's required to avoid penalties and turn energy management into a smart business move.

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Problem: Your business is a significant energy user, and you're aware of the new Energy Efficiency and Conservation Act (EECA) 2024, but you're unsure of its specific requirements or what steps you need to take to ensure compliance. The risk of penalties and operational disruption looms.

Agitate: Without a clear roadmap for compliance, you face potential fines (up to RM50,000!), damage to your company's reputation, and missed opportunities to reduce energy costs. The uncertainty and potential for legal issues can be a significant burden on your management team and financial health.

Solve: This guide offers A Compliance Checklist for Large Energy Consumers Under EECA 2024, simplifying the complex regulations into actionable steps. Discover precisely what your business needs to do, from appointing the right professionals to implementing effective energy management systems, ensuring you not only comply with the law but also unlock significant energy savings and enhance your business's sustainability.

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Summary

The Energy Efficiency and Conservation Act (EECA) 2024 became effective in Malaysia on January 1, 2025, mandating energy efficiency measures for Large Energy Consumers. This includes industrial facilities consuming ≥21,600 MWh/year and commercial office buildings ≥8,000 sqm GFA with low energy performance. A Compliance Checklist for Large Energy Consumers Under EECA 2024 covers:

1. Determine if you are an "Energy Consumer."
2. Appoint a Registered Energy Manager (REM).
3. Establish an Energy Management System (EnMS).
4. Conduct Energy Audits (by a Registered Energy Auditor, REA) when mandated.
5. Submit Energy Management Reports regularly.
6. Implement Energy Efficiency Measures.
7. Maintain Records.

Non-compliance can lead to fines up to RM50,000. The Act is enforced by the Energy Commission (Suruhanjaya Tenaga, ST). This checklist helps businesses reduce energy costs and enhance sustainability.

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1. The New Energy Rules: Why EECA 2024 is Important for Your Business

For a long time, energy use in Malaysia was largely up to individual businesses. But with the growing challenges of climate change and the need to manage our resources better, the Malaysian government has introduced a groundbreaking law: the Energy Efficiency and Conservation Act (EECA) 2024.

This Act officially started on January 1, 2025, and it's a big deal. Its main goal is to make sure that Malaysia uses energy more wisely, reduces waste, and becomes more sustainable. For many businesses, especially those that use a lot of energy, the EECA 2024 means new responsibilities and rules to follow.

Who exactly is affected by EECA 2024?

The Act focuses on what it calls "Energy Consumers". These are typically large energy users in two main categories:

• Industrial Facilities (like Factories): If your factory, manufacturing plant, or industrial site consumes 21,600 MWh (megawatt-hours) of energy or more per year (this includes electricity, natural gas, diesel, etc.), you are classified as an "Energy Consumer." To give you an idea, 21,600 MWh/year is roughly equivalent to an annual electricity bill of about RM2.4 million (depending on your tariff) or a natural gas bill of RM1 million.
• Commercial Buildings (like large Office Buildings): For office buildings, the rule is a bit different. If your building has a Gross Floor Area (GFA) of 8,000 square meters (m2) or more, it will be required to get a Building Energy Intensity (BEI) label from the Energy Commission. If this BEI label shows that your building's energy performance is below a certain minimum standard set by the Energy Commission (for example, if it scores below a 2-star rating), then you will be notified and mandated to conduct an energy audit.

So, if your business falls into one of these categories, you absolutely need to understand and follow the rules of the EECA 2024. Not complying can lead to serious consequences, including fines of up to RM50,000.

This guide is designed to simplify what you need to do. It provides A Compliance Checklist for Large Energy Consumers Under EECA 2024, helping you navigate the new requirements smoothly.

 

2. Checklist Item 1: Determine If You Are an "Energy Consumer"

Before doing anything else, your first step is to confirm whether your business or building falls under the definition of an "Energy Consumer" according to the EECA 2024.

• For Industrial Facilities:
• Action: Collect all your energy bills (electricity from TNB, natural gas from Gas Malaysia, diesel, etc.) for the past 12 months.
• Calculation: Add up your total annual energy consumption. Convert all energy types to MWh (megawatt-hours) or Gigajoules (GJ) for a consistent measurement. (Your energy manager or consultant can help with conversions if needed).
• Threshold: If your total annual energy consumption is 21,600 MWh (or 77,760 GJ) or more, then you are an "Energy Consumer" under the Act.
• For Commercial Office Buildings:
• Action: Determine your building's Gross Floor Area (GFA) in square meters (m2). This should be readily available from your building plans.
• Threshold: If your office building's GFA is 8,000 m2 or more, you will be subject to the BEI labeling requirement.
• Mandatory Audit Trigger: Even if you meet the GFA threshold, an audit only becomes mandatory if your BEI label indicates poor energy performance and the Energy Commission issues a notice. However, it's wise to be prepared.

Why this matters: This initial check tells you if the rest of this checklist applies directly to your business. If you are an "Energy Consumer," the following steps are mandatory.

 

3. Checklist Item 2: Appoint a Registered Energy Manager (REM)

If your industrial facility is an "Energy Consumer" (using ≥21,600 MWh/year), or if your commercial building is large and has received a notice for mandatory energy management, you must appoint a Registered Energy Manager (REM).

• Who is an REM? An REM is a professional specifically certified and registered by the Energy Commission (Suruhanjaya Tenaga, ST) in Malaysia. They have the expertise to manage and optimize energy use in large facilities.
• Their Role: The REM will be responsible for overseeing your company's energy management activities, developing the Energy Management System (EnMS), tracking energy use, identifying savings, and ensuring compliance with the EECA 2024.
• How to Appoint:
• You can hire an in-house REM (an employee who meets the qualifications and becomes registered).
• Alternatively, you can engage an external Registered Energy Manager or an Energy Service Company (ESCO) that employs REs and REMs. Many businesses prefer the external option for specialized expertise without the full-time employment cost.
• Verification: Always ensure the REM (or the ESCO they work for) is officially registered with the ST. You can check the ST's website for the list of registered professionals.

Why this matters: The REM is your key person for navigating EECA 2024 compliance. Without one, you're immediately in breach of the Act if you're a mandated "Energy Consumer." The penalty for failing to appoint an REM can be a fine of up to RM50,000.

 

4. Checklist Item 3: Establish an Energy Management System (EnMS)

For "Energy Consumers" (industrial facilities ≥21,600 MWh/year), simply appointing an REM isn't enough. You are also required to establish and maintain an Energy Management System (EnMS).

• What is an EnMS? An EnMS is a structured approach that helps your organization systematically manage its energy use. Think of it like a quality management system (e.g., ISO 9001) but specifically for energy. It involves:
• Policy: A clear commitment from top management to energy efficiency.
• Planning: Understanding your energy use, setting energy goals, and creating action plans.
• Implementation & Operation: Putting the plans into action, assigning responsibilities, and training staff.
• Checking & Corrective Action: Monitoring energy performance, measuring results, and taking action when things go off track.
• Management Review: Regularly reviewing the EnMS to ensure it's effective and continuously improving.
• Benefits: An EnMS helps you track energy performance, identify opportunities for improvement, and ensure that energy efficiency becomes a part of your daily operations, not just a one-off project. It empowers you to make data-driven decisions.
• Guidance: Your appointed REM will be instrumental in developing, implementing, and maintaining this EnMS. They will ensure it aligns with the requirements of the EECA 2024. While not explicitly stated to be ISO 50001 certified, many companies find adopting the principles of ISO 50001 (the international standard for energy management systems) very helpful for building a robust EnMS.

Why this matters: The EnMS is the backbone of your energy management strategy under EECA 2024. It ensures a systematic and continuous effort to save energy, moving beyond just simple fixes.

 

5. Checklist Item 4: Conduct Energy Audits (When Mandated)

While all "Energy Consumers" are encouraged to conduct energy audits, the EECA 2024 specifically mandates them under certain conditions.

• Mandatory for Poor Performance: For large commercial office buildings ($ \ge 8,000 \text{ sqm GFA}$), an energy audit becomes mandatory if your Building Energy Intensity (BEI) label (issued by the Energy Commission) indicates poor energy performance, and you receive an official notice to conduct an audit.
• Mandatory for Industrial Facilities (implied through EnMS): For industrial "Energy Consumers," while not explicitly stated as a one-time mandate like for commercial buildings, the requirement to establish an EnMS implies the need for regular energy audits as part of the system's "planning" and "checking" phases to identify and verify energy-saving opportunities.
• Who can perform the audit? Any mandatory energy audit must be conducted by a Registered Energy Auditor (REA), certified by the Energy Commission (ST).
• Funding Assistance: Remember that SEDA Malaysia offers the Energy Audit Conditional Grant (EACG 2.0), which can help cover up to RM100,000 for industrial audits and RM60,000 for commercial building audits. Your ESCO/REM can help you apply for this.

Why this matters: Energy audits are the core tool for identifying where energy is being wasted and how much you can save. If mandated, failing to conduct one by a qualified REA means direct non-compliance.

 

6. Checklist Item 5: Submit Energy Management Reports

The EECA 2024 introduces a new level of accountability. "Energy Consumers" will be required to submit regular reports to the Energy Commission (ST).

• What to Report: These reports will detail your energy consumption, your energy management activities, the energy-saving measures you've implemented, and the actual energy savings achieved.
• How to Report: The Energy Commission will establish a system (likely an online portal) for submitting these reports. Your REM will be responsible for preparing and submitting these reports accurately and on time.
• Reporting Frequency: The exact frequency (e.g., quarterly, annually) will be specified in the upcoming regulations, but expect regular reporting to be part of the ongoing compliance.

Why this matters: Regular reporting keeps your business accountable and allows the Energy Commission to monitor Malaysia's progress towards its energy efficiency goals. Failure to submit required reports is a breach of the Act and can lead to fines.

 

7. Checklist Item 6: Implement Energy Efficiency Measures

The whole point of having an REM, an EnMS, and conducting audits is not just to talk about saving energy, but to actually save it. The EECA 2024 expects "Energy Consumers" to take action.

• Action Plan: Based on your energy audits and the recommendations from your REM, you will need to develop and implement specific Energy Efficiency Measures (EEMs). These could include:
• Upgrading to energy-efficient equipment (e.g., LED lighting, high-efficiency motors, chillers).
• Improving insulation or sealing air leaks.
• Optimizing operational schedules and controls (e.g., turning off lights/AC when not needed).
• Implementing waste heat recovery systems.
• Fixing leaky compressed air systems.
• Adopting renewable energy solutions (e.g., solar panels).
• Commitment: As mentioned, if you secured the EACG 2.0 grant, you have a formal commitment to invest an amount equal to or more than the grant value into these measures within three years.
• Monitoring Results: Your REM will monitor the effectiveness of these implemented measures to ensure they deliver the expected energy savings.

Why this matters: This is where the real cost savings happen. By actively implementing EEMs, you reduce your operating expenses, improve your environmental footprint, and fulfill the core purpose of the EECA 2024.

 

8. Checklist Item 7: Maintain Comprehensive Records

Throughout your energy management journey, it's critical to keep detailed and accurate records.

• What Records to Keep:
• All your energy bills (electricity, natural gas, diesel, etc.) for at least the past 3-5 years.
• Records of all energy consumption data collected by sub-meters or other monitoring devices.
• Details of all energy-using equipment (type, age, power rating, maintenance logs).
• Energy audit reports from your REA.
• Records of all implemented Energy Efficiency Measures (EEMs), including their cost, implementation date, and expected/actual savings.
• Training records for staff involved in energy management.
• Communication and reports submitted to the Energy Commission.
• Documents related to your EnMS (policy, plans, reviews).
• Accessibility: Ensure these records are well-organized and easily accessible for review by the Energy Commission if needed.
• Your REM's Role: Your REM will play a key role in ensuring these records are properly maintained and updated.

Why this matters: Good record-keeping provides the evidence of your compliance with EECA 2024. It also helps you track your progress, identify new opportunities, and ensures transparency. Without proper records, it's difficult to prove that you are meeting the Act's requirements.

In summary, the Energy Efficiency and Conservation Act (EECA) 2024 marks a new era for energy management in Malaysia, making compliance a mandatory and strategic imperative for large energy consumers. This Compliance Checklist for Large Energy Consumers Under EECA 2024 outlines the essential steps: from accurately determining your "Energy Consumer" status and appointing a Registered Energy Manager (REM), to establishing a robust Energy Management System (EnMS) and engaging a Registered Energy Auditor (REA) for audits when required. It also emphasizes the importance of submitting regular reports, actively implementing identified energy efficiency measures, and maintaining meticulous records. Adhering to this checklist not only safeguards your business from potential fines (up to RM50,000) but also positions your company for significant cost savings, enhanced operational efficiency, and a stronger commitment to sustainability in line with Malaysia's net-zero aspirations.

Is your business ready to navigate the new landscape of energy efficiency under EECA 2024? Don't leave compliance or potential savings to chance. Our team offers expert guidance to help you understand your obligations, develop your Energy Management System, and connect with certified Registered Energy Managers and Auditors. Take the proactive step to secure your business's future and reduce your energy footprint. WhatsApp or call us today at 0133006284 for a comprehensive consultation and get your compliance checklist in order!