PUTRAJAYA, Dec 4 — The government is expected to enforce the Energy Efficiency and Conservation Act (EECA) 2024 on January 1, with the Energy Commission acting as the implementing and regulatory agency.
In a statement today, the Energy Transition and Water Transformation Ministry (PETRA) announced that the act received the consent of the King of Malaysia, His Majesty Sultan Ibrahim, on November 14 and was gazetted on November 26.
The EECA is expected to have a positive impact on Malaysia’s sustainable development agenda and socio-economic benefits up to 2050, including a cumulative energy savings of 2,017 million gigajoules.
“This equates to utility bill savings of RM97.1 billion (based on current electricity tariffs) and will prevent 197,877 ktCO2 of carbon emissions,” the statement read.
PETRA noted that the enforcement of the act will only apply to users consuming energy equal to or above the threshold of 21,600 gigajoules per annum, which is equivalent to a minimum annual electricity bill of RM2.4 million or a minimum natural gas bill of RM1 million.
PETRA estimates that approximately 4.3 per cent of energy users in the industrial sector, contributing to about 66 per cent of energy consumption within the sector, will be subject to the EECA.
“Meanwhile, only 0.04 per cent of energy users in the commercial sector, who account for 21 per cent of energy consumption in the sector, will be affected,” read the statement.
PETRA stated that compliance with the act will involve minimal costs for the industrial and commercial sectors compared to the long-term benefits that will be gained by all energy users.
“It contributes to the country’s energy transition aspirations, particularly in managing energy demand effectively,” the statement added.
In the same statement, Deputy Prime Minister and Energy Transition and Water Transformation Minister Datuk Seri Fadillah Yusof emphasised that the EECA is a key instrument to drive and expand the nation’s energy efficiency initiatives, covering both electrical and thermal energy.
He added that the focus will be on comprehensive energy demand management, as well as promoting energy efficiency and sustainable energy practices across the industrial, commercial, and domestic sectors.
— Bernama
