EECA 2024 is Here: Does Your
Business Legally Require a Registered Energy Manager?
Reading Time:
Approximately 7 minutes Key Takeaway: The Energy Efficiency and
Conservation Act (EECA) 2024 in Malaysia mandates that certain businesses and
buildings appoint a Registered Energy Manager to implement energy-saving
measures and comply with new regulations.
Problem: Feeling overwhelmed by the
ever-changing regulations for businesses in Malaysia? Agitate: The new
Energy Efficiency and Conservation Act (EECA) 2024 has just come into force,
and without understanding its implications, your business could face hefty
fines and penalties. Solve: This article will break down what EECA
2024 is Here: Does Your Business Legally Require a Registered Energy Manager?
means for you, clearly explaining the requirements and how to stay compliant.
Summary
The Energy Efficiency and Conservation Act
(EECA) 2024 came into effect on January 1, 2025. It targets "Energy
Consumers" – primarily industrial and commercial businesses – that use a
significant amount of energy. If your business consumes 21,600 Gigajoules
(GJ) or more annually (which is roughly RM2.4 million in electricity bills
or RM1 million in natural gas bills), or if you manage an office building with
a gross floor area of 8,000 square meters or more, you likely need to
appoint a Registered Energy Manager (REM). The REM will help your business
implement an Energy Management System (EnMS), conduct energy audits, and submit
reports to the Energy Commission (EC). Non-compliance can lead to fines ranging
from RM20,000 to RM100,000.
What's This New Energy Law All
About?
Okay, let's talk about the big changes
happening in Malaysia when it comes to how businesses use energy. There's a new
law called the Energy Efficiency and Conservation Act, or EECA 2024 for short.
This law became active on January 1, 2025, and it's a pretty big deal because
it changes how certain businesses need to manage their energy use.
Think of it like this: Malaysia wants to be
more energy-smart and reduce its impact on the environment. The EECA 2024 is a
major step in that direction. It's not just about electricity anymore; it also
covers other types of energy, like the gas you might use for heating or
machinery.
So, who does this law apply to? It's mainly
for "Energy Consumers," which means big businesses and large
commercial buildings that use a lot of energy. If your business falls into this
group, then EECA 2024 is Here: Does Your Business Legally Require a
Registered Energy Manager? is a question you definitely need to answer.
Let's break down who exactly needs to pay
attention to this new law:
- Big Energy Users: If
your business, whether it's a factory or a large office, uses 21,600
Gigajoules (GJ) or more of energy in one year, then you're considered an
"Energy Consumer" under this new law. To give you an idea,
21,600 GJ is roughly the same as spending RM2.4 million on your
electricity bill or RM1 million on your natural gas bill in a year. So, if
your energy bills are in that ballpark, this law probably applies to you.
- Large Office Buildings:
Even if your business doesn't consume that much energy directly, if you're
in charge of an office building that has a total floor area of 8,000
square meters or more, then this law also applies to you. This includes
building owners or anyone managing such a large building.
The government, through the Energy Commission
(EC), will be looking at businesses and buildings that meet these thresholds.
If you do, you'll likely receive a notice from them. Once you get that notice,
you have certain things you must do.
Why is a Registered Energy
Manager So Important?
One of the most important things the EECA 2024
says is that if your business is an "Energy Consumer," you must
appoint a Registered Energy Manager (REM). This isn't just a suggestion; it's a
legal requirement.
So, what exactly does a Registered Energy
Manager do? They're like your business's energy expert. Their main job is to
help your company use energy smarter and follow the new rules. Here's a list of
their key tasks:
- Collecting Energy Data:
They'll gather all the information about how much energy your business is
using. This includes electricity, gas, and any other energy sources.
They'll also analyze this data to understand where your energy is going
and if there's any waste.
- Setting Up an Energy Management System
(EnMS): This is a structured way of managing
energy use within your company. The REM will help you put this system in
place and make sure it's actually being used. Think of it as a plan to
keep your energy consumption in check.
- Monitoring the System:
It's not enough to just set up an EnMS. The REM will continuously watch
how well it's working and make sure your business is sticking to the plan.
- Preparing Energy Reports: The
REM is responsible for writing detailed reports about your energy use and
what your company is doing to save energy. These reports, called Energy
Efficiency and Conservation (EE&C) reports, need to be sent to the
Energy Commission every year.
- Ensuring Accuracy:
They have to make sure all the information in those reports is correct and
honest.
- Giving Advice: The
REM will tell your business about different ways you can save energy.
They'll also keep an eye on whether these new energy-saving ideas are
actually being put into practice and if they're working.
- Other Duties: The
Energy Commission might also ask the REM to do other tasks related to
energy efficiency.
There are actually two types of Registered
Energy Managers:
- REM Type 1: You
need to appoint this type if your facility uses between 21,600 GJ and
50,000 GJ per year. REM Type 1 managers are good at understanding energy
management systems and auditing electrical energy use to find savings.
- REM Type 2: If
your facility uses 50,000 GJ or more per year, you'll need a REM Type 2.
These managers have even more knowledge, including how to audit thermal
energy systems (like those using heat or steam) and find ways to save
energy there too.
You can either hire someone from within your
company to become a REM (if they have the right qualifications and training) or
you can hire an external REM.
What Happens If You Don't Comply? (The
"Naughty List")
The Energy Efficiency and Conservation Act
2024 isn't just a suggestion; it has real teeth. If your business is supposed
to follow this law and you don't, there can be serious penalties. We're talking
about fines and, in some cases, even jail time.
Here are some of the things that could get
your business into trouble:
- Not Appointing a REM:
This is a big one. If your business is required to have a Registered
Energy Manager and you don't appoint one, you could face a fine of up to
RM50,000.
- REM Not Doing Their Job:
It's not enough to just appoint a REM; they have to actually do the duties
outlined by the law. If they don't, there could be a fine of up to
RM20,000.
- No Energy Management System (EnMS): If
your business doesn't set up and follow an Energy Management System as
required, you could be fined up to RM20,000.
- Not Submitting Reports:
Those annual EE&C reports are crucial. If you fail to submit them, or
if the information in them isn't accurate, your business could face a fine
of up to RM50,000.
- No Energy Audits: The
law also requires periodic energy audits by a Registered Energy Auditor
(REA). If you don't conduct these audits or submit the reports, you could
be fined up to RM50,000.
These fines are significant, and they're meant
to encourage businesses to take energy efficiency seriously. The Energy
Commission is the body that will enforce these rules, and they have the power
to inspect your facilities and take action if you're not following the law.
More Than Just a REM: Other
EECA Requirements
While appointing a Registered Energy Manager
is a key part of the EECA 2024, it's not the only thing businesses need to do.
Here are some other requirements that might apply to your business or building:
- Energy Audits:
Besides the ongoing work of a REM, the EECA also requires businesses to
conduct regular energy audits. These audits are like a deep dive into your
energy use to find even more ways to save. These audits must be done by a
Registered Energy Auditor (REA), and their reports also need to be sent to
the Energy Commission.
- Building Energy Intensity (BEI) Labeling: For
large office buildings (8,000 square meters or more), there's a
requirement to get an energy intensity label from the Energy Commission.
This label shows how energy-efficient the building is and needs to be
displayed in a visible spot. The building also needs to meet certain
energy performance standards. If it doesn't, an energy audit and an energy
improvement plan will be required.
- Energy-Using Products: The
EECA also touches on manufacturers and importers of certain energy-using
products (like appliances). They need to register with the Energy
Commission and make sure their products meet minimum energy performance
standards and have energy efficiency labels.
The goal behind all these requirements is to reduce overall energy consumption across Malaysia. This helps save money for businesses, makes the country more sustainable, and reduces carbon emissions. It's a win-win situation, but it does require businesses to adapt and invest in energy efficiency.
Getting Ready for EECA 2024
So, what should your business do now that EECA
2024 is Here: Does Your Business Legally Require a Registered Energy Manager?
is a question with real legal consequences?
Here are some steps you can take:
- Understand Your Energy Use: The
very first thing is to know exactly how much energy your business
consumes. Look at your electricity bills, gas bills, and any other energy
sources. Add them all up (or get help to convert them to Gigajoules) to
see if you cross that 21,600 GJ per year threshold.
- Check Your Building Size: If
you manage an office building, measure its gross floor area. If it's 8,000
square meters or more, then the BEI labeling requirements will apply to
you.
- Stay Informed: The
Energy Commission might release more guidelines and updates. Make sure
you're aware of the latest information.
- Plan Ahead:
Don't wait until you get a notice from the Energy Commission. Start
thinking about how you'll appoint a REM, what kind of energy management
system you might need, and how you'll conduct energy audits.
- Consider Training: If
you have employees who might be suitable to become a REM, look into the
training courses available. There are Registered Training Institutions
(RTIs) that offer the necessary courses.
- Budget for Changes:
Implementing energy efficiency measures and hiring a REM or auditor might
involve some costs. Factor these into your business budget. There might
also be government grants or incentives available to help with these
costs.
The EECA 2024 is a significant shift in
Malaysia's approach to energy. It's about making businesses more responsible
for their energy consumption and pushing for a more sustainable future. While
it might seem like a lot of new rules, ultimately, becoming more
energy-efficient can lead to lower operating costs and a better image for your
business.
In summary, the EECA 2024 is a critical piece
of legislation that mandates specific actions for energy-intensive businesses
and large buildings in Malaysia. Understanding if your business legally
requires a Registered Energy Manager is the first step towards compliance and
avoiding penalties. By taking proactive measures to appoint a REM, implement an
Energy Management System, and conduct regular audits, your business can not
only meet its legal obligations but also contribute to a more sustainable future
while potentially reducing operational costs.
Don't leave your business exposed to
non-compliance. For a clear understanding of how EECA 2024 specifically impacts
your operations and to ensure you meet all requirements, WhatsApp or call us
today at 0133006284. Let's make sure your business is energy-efficient and
compliant!
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