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The Energy Efficiency and Conservation Act 2024 (“EECA”) received royal assent from the Yang di-Pertuan Agong on 14 November 2024, and the EECA was gazetted yesterday, 26 November 2024. The EECA will come into operation on a date to be appointed by the Minister of Energy Transition and Water Transformation through a notification in the Gazette.
The EECA expands the scrutiny on the type of energy being consumed beyond electrical consumption to other types of energy resources such as natural gas, methane, solar photovoltaic, steam, chilled water, and hot water. The complete list is found in the First and Second Schedules of the EECA.
“… with the rise of ESG compliance globally, Malaysian businesses are encouraged to view this as a timely call to action …”
At the same time, the Electricity Supply (Amendment) Act 2024 (“ESSA”) was also gazetted yesterday. The ESSA seeks to remove provisions regarding efficient use of electricity to cater for the implementation of the EECA, and to ensure that all requirements relating to electricity efficiency will be contained under the EECA. Any application for, or issuance of, a “Certificate of Approval” under the Electricity Supply Act in respect of the efficient use of electricity before the date the ESSA comes into force shall be deemed to have been made and dealt with under the EECA.
The Energy Commission shall determine whether a person is an energy consumer to whom, or a building is a building to which, the EECA applies and issue a written notice to such person or person in charge of such building.
While the immediate focus is on large consumers, with the rise of ESG compliance globally, Malaysian businesses are encouraged to view this as a timely call to action to adopt energy efficiency and conservation measures as part of their sustainability strategies. By optimising energy usage, businesses can reduce cost and appeal to eco-conscious stakeholders while contributing to Malaysia’s broader vision of a greener economy.
Our article on the key obligations introduced by the EECA can be viewed here.
If you have any query, please contact the author, Joyce Ong Kar Yee (oky@lh-ag.com), Partner in the ESG and Sustainability Practice. This article was co-authored by Kerryn Toh, Associate.
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