How to Appoint a
Registered Energy Manager and Comply with EECA 2024
Reading Time: Approximately
7-8 minutes
Key Takeaway: Malaysia's
Energy Efficiency and Conservation Act (EECA) 2024 is now law, and if your
company is a "Designated Energy Consumer," you have a crucial task
ahead: appointing a Registered Energy Manager (REM). Understanding How to Appoint
a Registered Energy Manager and Comply with EECA 2024 is essential. This isn't
just about avoiding penalties; it's about setting up your business for
long-term energy savings and showing your commitment to sustainability.
Problem: The EECA 2024 is
here, and you've been notified (or suspect you will be) that your company needs
a Registered Energy Manager (REM). The process seems complicated, and you're
unsure where to even begin to find one and ensure your business follows all the
new rules.
Agitate: Delaying this
appointment or getting it wrong could lead to significant fines and unnecessary
stress. You don't want to fall behind on compliance or miss out on the valuable
energy savings a REM can bring.
Solve: This guide will break
down How to Appoint a Registered Energy Manager and Comply with EECA 2024 into
clear, simple steps. We'll walk you through everything from identifying if you
need a REM to the actual appointment process and what comes next, making your
compliance journey smooth and straightforward.
Summary
The Energy Efficiency and
Conservation Act (EECA) 2024, effective January 1, 2025, requires companies
identified as "Energy Consumers" (using 21,600 GJ/year or more) to
appoint a Registered Energy Manager (REM). The process involves confirming your
"Energy Consumer" status (usually via an Energy Commission notice),
deciding between an internal or outsourced REM, verifying their qualifications
(including the correct REM Type 1 or Type 2), and then formally appointing them
within three months of receiving the EC notice. Following the appointment, your
REM will establish an Energy Management System (EnMS) and prepare annual
EE&C reports. Understanding How to Appoint a Registered Energy Manager and
Comply with EECA 2024 is key to avoiding fines (up to RM50,000 for
non-appointment) and unlocking significant energy savings.
1. The EECA 2024: Why
Your Company Needs to Pay Attention
Malaysia has a new important
law called the Energy Efficiency and Conservation Act (EECA) 2024. This
law started on January 1, 2025, and it's a big step for the country to use
energy smarter and reduce waste. It's part of Malaysia's plan to become
"carbon neutral" by 2050, which means balancing out the carbon
pollution it puts into the air.
This new law changes how many
businesses, especially those that use a lot of energy, need to operate. One of
the most important parts of the EECA is the requirement for certain companies
to hire a Registered Energy Manager (REM).
So, if you run a business in
Malaysia, you might be asking: "Does this apply to me? And if so, How
to Appoint a Registered Energy Manager and Comply with EECA 2024?"
This guide will help you understand the steps to meet this new requirement and
avoid any problems.
2. Are You a
"Designated Energy Consumer"? (And Why It Matters)
The EECA 2024 doesn't apply to
every small shop or office. It's designed for businesses that use a significant
amount of energy. The law calls these businesses "Energy Consumers."
How do you know if your
company is an "Energy Consumer"?
Your business is considered an
"Energy Consumer" if it uses a total of 21,600 Gigajoules (GJ) or
more of energy in any 12 months (a full year).
- This isn't just about electricity. It
includes all types of energy your company might use:
- Electricity
(from TNB, for example)
- Natural Gas
- Diesel or other fuels
for generators, vehicles, or machines
- Even thermal energy like steam or
chilled water if you buy it from another company.
- To give you an idea of how much 21,600 GJ
is: it's roughly equal to an annual electricity bill of about RM 2.4
million or an annual natural gas bill of about RM 1 million.
How will you be notified?
The Energy Commission (EC) is
the government body in charge of the EECA. They will look at energy use data.
If your company meets the 21,600 GJ limit, the EC will send you an official written
notice. This letter will tell you that your business is now a
"Designated Energy Consumer" under the EECA 2024.
If you receive this letter,
then the answer is a clear YES – you need to take action to comply!
Once you get that notice, a
very important clock starts ticking. You will typically have three months
from the date of the notice to officially appoint your Registered Energy
Manager. This is why knowing How to Appoint a Registered Energy Manager and
Comply with EECA 2024 before you get the notice can save you a lot
of stress.
3. Understanding the
Registered Energy Manager (REM)
Before you can appoint a REM,
it's good to know who they are and what types exist. A Registered Energy
Manager (REM) is a professional officially registered with the Energy
Commission (EC). They have special training and knowledge in how to manage and
save energy.
Types of REMs:
The EECA 2024 talks about two
main types of REMs:
- REM Type 1:
This person is an expert in managing energy systems, auditing electrical
energy use, and suggesting ways to save electricity. You typically need a
REM Type 1 if your energy use is between 21,600 GJ/year and 50,000
GJ/year.
- REM Type 2:
This person has all the skills of a Type 1 REM, PLUS they have extra
knowledge in auditing and saving thermal energy (like heat from steam or
hot water systems). You'll need a REM Type 2 if your company's energy use
is 50,000 GJ/year or more, or if you have significant thermal energy
consumption.
Who can be a REM?
A REM must be a Malaysian
citizen and meet specific qualifications (like having a degree in science,
engineering, technology, or architecture with relevant working experience, or
being a Professional Engineer). They must also complete mandatory training and
pass an exam given by an EC-registered training institution.
Can you use an existing
employee or hire externally?
You have options:
- Internal REM:
You can train one of your current employees to become a REM. This is great
for building in-house expertise. An internal REM can even serve up to
seven other related companies within the same corporate group.
- Outsourced REM:
You can hire an external consultant or firm that provides REM services.
This is a good option if you need immediate expertise. However, for your first
appointment after receiving the EC notice, an outsourced REM can only be
appointed for a period not longer than three years. This encourages
companies to develop their own internal capabilities over time.
Knowing these details is the
first step in understanding How to Appoint a Registered Energy Manager and
Comply with EECA 2024.
4. Step-by-Step Guide:
How to Appoint Your REM
So, you've received the EC
notice, or you know you're an "Energy Consumer." Here's a clear,
step-by-step guide on How to Appoint a Registered Energy Manager and Comply
with EECA 2024:
Step 1: Confirm Your
"Energy Consumer" Status and REM Type.
- Received Notice:
If the Energy Commission has sent you a written notice, congratulations,
you're an official "Energy Consumer." The notice might even
suggest the REM Type (1 or 2) you'll likely need based on your
consumption.
- No Notice Yet? Calculate:
If you haven't received a notice but suspect you're a large energy user,
go back and calculate your total energy consumption (electricity, natural
gas, diesel, etc.) for the last 12 consecutive months. If it's 21,600 GJ
or more, start preparing now. If it's 50,000 GJ or more, prepare for a
Type 2 REM.
- Tip: Converting your energy bills to GJ
might require a little help from an expert or online conversion tools, as
different energy sources use different units (kWh for electricity, m3 for
natural gas, liters for diesel).
Step 2: Decide: Internal
Employee or External Consultant?
- Internal:
Look within your company. Do you have an engineer, facilities manager, or
someone with a technical background who is interested in energy management
and willing to undergo training? This route builds long-term in-house
expertise.
- External:
If you need a REM quickly, or prefer to outsource the role, start looking
for an EC-registered consulting firm or individual REM. Ensure they have
the correct REM Type certification for your needs. Remember the 3-year
initial limit for external appointments.
Step 3: Find or Train Your
REM.
- For an Internal REM:
- Enroll in Training:
The chosen employee must attend and pass a training program for REM Type
1 (and potentially Type 2, if needed). This training must be provided by
a "Registered Training Institution" (RTI) approved by the
Energy Commission.
- Apply for Registration:
After successfully completing the training and passing the exams, the
individual must apply to the Energy Commission to be officially
registered as a REM. They'll need to submit their academic certificates,
proof of experience, and the training certificates.
- Note: If you had a "Registered
Electrical Energy Manager" (REEM) under the old law, they might be
able to transition to a REM Type 1. Check the EC's guidelines for the
transition process.
- For an External REM:
- Verify Credentials:
Ask for proof of their REM registration with the EC, including their REM
Type.
- Check Experience:
Look for a REM or firm with experience in your industry or with similar
energy profiles.
- Get a Proposal:
Request a clear proposal outlining their services, responsibilities, and
fees.
Step 4: Formal Appointment.
- Once you have identified your REM (whether
internal or external, and they are officially registered with the EC), you
must formally appoint them.
- Crucial Deadline:
This appointment must be done within three months from the date you
received the official "Energy Consumer" notice from the Energy
Commission.
- Notify the EC:
After the appointment, you must inform the Energy Commission of your REM's
details, usually through their online portal (iRIST). You'll likely need
to provide their name, registration number, and the date of their
appointment.
Step 5: Start Implementing
Energy Management.
- Energy Management System (EnMS):
After appointing your REM, you have a timeline (typically 12 months from
receiving the EC notice) to establish and implement an Energy
Management System (EnMS) within your company. Your REM will lead this
effort.
- Energy Audits:
Within 12 months of receiving the EC notice, your company must also
conduct an energy audit, performed by a Registered Energy Auditor (REA).
The REM will typically help coordinate this.
- Annual Reporting:
Your REM will be responsible for preparing and submitting your company's
annual Energy Efficiency & Conservation (EE&C) Report to
the EC. The first report is usually due within 30 days after the end of
the first year of the REM's appointment.
By following these steps, you
will not only comply with the EECA 2024 but also put your company on a path to
better energy management and significant cost savings. This detailed guide on How
to Appoint a Registered Energy Manager and Comply with EECA 2024 makes the
process manageable.
5. What Happens if You
Don't Comply? (Penalties)
The EECA 2024 is a serious
law, and the Energy Commission has the power to enforce it. If your company is
identified as an "Energy Consumer" and fails to follow the rules,
there can be significant penalties.
- Fines for Not Appointing a REM:
If your company is required to appoint a Registered Energy Manager but
fails to do so within the given timeframe (usually three months from the
EC notice), you can face a fine of up to RM 50,000. This is a hefty
sum that no business wants to pay unnecessarily.
- Fines for Other Failures:
- Failing to set up an Energy Management
System (EnMS) as required: Fine up to RM20,000.
- Failing to submit the annual Energy
Efficiency & Conservation (EE&C) Report: Fine up to RM50,000.
- Failing to conduct mandatory energy
audits: Fine up to RM50,000.
- Damage to Reputation:
Beyond money, not following environmental laws can hurt your company's
image. Customers, business partners, and even potential employees might
see your company as irresponsible, which can affect your business in the
long run.
These penalties show why it's
so important to understand How to Appoint a Registered Energy Manager and
Comply with EECA 2024. Proactive action means you avoid these problems and
focus on the benefits of energy efficiency.
6. The Benefits of
Proactive Compliance
While avoiding fines is a big
motivator, understanding How to Appoint a Registered Energy Manager and
Comply with EECA 2024 and actually doing it brings many positive changes to
your business:
- Real Money Saved:
The biggest benefit is saving money on your energy bills. A good REM will
find ways to cut down your energy use, which means lower operating costs.
These savings can easily outweigh the cost of hiring a REM.
- Stronger Business:
By being more energy efficient, your company becomes more resilient.
You're less vulnerable to rising energy prices and potential energy
shortages. This makes your business stronger in the long term.
- Better Image:
In today's world, being a "green" or sustainable company is a
big plus. It shows you care about the environment, which can attract more
customers, make your company more appealing to investors, and help you
hire and keep talented employees.
- Competitive Edge:
Some customers or international partners might prefer to work with
companies that are energy-efficient and compliant with environmental
standards. This can give you an advantage over your competitors.
- Access to Incentives:
The Malaysian government often offers grants or incentives for companies
that invest in energy efficiency. For example, the Energy Audit
Conditional Grant (EACG 2.0) from SEDA Malaysia can help pay for
energy audits. Your REM can help you find and apply for these programs,
further reducing your costs.
- Smarter Decisions:
The REM gathers lots of data about your energy use. This detailed
information helps your management team make better decisions about where
to invest in new equipment or changes to your operations for the biggest
energy savings.
- Future-Proofing:
Laws and regulations about energy and the environment are only going to
get stricter. By complying now, you're preparing your business for what's
to come, avoiding future headaches.
Thinking about How to
Appoint a Registered Energy Manager and Comply with EECA 2024 isn't just
about following rules; it's about smart business strategy that benefits your
company financially and environmentally.
In summary, with the EECA 2024
now enforced, if your company is an "Energy Consumer" (using 21,600
GJ/year or more), understanding How to Appoint a Registered Energy Manager and
Comply with EECA 2024 is critically important. This involves verifying your
energy consumption, deciding between an internal or external REM, ensuring they
are properly qualified (Type 1 or Type 2), and then formally appointing them
within three months of receiving the Energy Commission's notice. After
appointment, your REM will guide you in establishing an Energy Management
System (EnMS) and submitting annual reports. Non-compliance can lead to hefty
fines up to RM50,000. However, proactive engagement not only avoids penalties
but also unlocks significant energy cost savings, enhances your company's
reputation, and provides a clear competitive edge in a rapidly evolving market.
Don't leave your company's
energy future to chance. If you're unsure about your "Energy
Consumer" status, the appointment process, or how to fully comply with
EECA 2024, our team of experts can provide the clarity and support you need.
Take the first step towards smarter energy management and compliance today.
WhatsApp or call us now at 0133006284 for a comprehensive consultation!
Comments
Post a Comment