1. Legal framework for improvement of energy efficiency and conservation

(1) Law
Energy Commission Act 2001
Electricity Supply Act 1990

(2) Regulatory Measures
1) Regulatory Measures based on the law
A. Electricity Regulations 1994 – Amendment 2013 to include the Minimum Energy Performance Standards (MEPS)
B. Efficient Management of Electrical Energy Regulations 2008 (EMEER 2008)

2) Other measures for EE&C included in other laws, regulations, programs, etc.(if any)
A. ASEAN Energy Management Scheme (AEMAS)
B. Energy Manager Training Courses (EMTC) by MAESCO
C. Energy Performance Contracting (EPC) Concept & Financing Scheme
D. Promotion of Energy Service Company (ESCO) Bussiness.

(3) National plan for promoting energy efficiency and conservation
A. 11th Malaysia Plan
B. National Energy Efficiency Action Plan (NEEAP), (2016-2025)
C. Energy Efficiency Program under the Eleventh Malaysia Plan (RMK 11), (2016-2020)
D. Demand Side Management preliminary study (including Electricty sector, Thermal sector and Transport sector)

2. Financial measures taken by the government

(1) Tax scheme
Green Technology Incentive (Income Tax Act, 1967)

(2) Low-interest loan
Green Technology Financing Scheme (GTFS)
Energy Performance Contracting (EPC) Fund by Malaysia Debt Ventures (MDV)

(3) Subsidies and budgetary measures
Malaysia Electricity Supply Industry Trust Account (MESITA)


3. Energy prices

Imbalance Cost Pass-Through (ICPT)
ICPT is a mechanism under the Incentive Based Regulation (IBR) framework which allows TNB as the utility to reflect changes (either increase or reduction) in fuel and other generation-related costs in the electricity tariff every six (6) months.

There are two ICPT key components:
1. FCPT: Fuel Cost Pass-Through component captures any variation in fuel cost (specific to piped gas, liquefied natural gas (LNG) and coal) as a result of changes in the fuel price, fuel quantity, generation mix, exchange rate and etc.
2. GSCPT: Generation Specific Cost Pass-Through component captures any variation in other generation specific costs as a result of changes in other costs associated with the Power Purchase Agreements (PPAs) & Service Level Agreements (SLAs) and fuel procurement contracts i.e. Coal Supply Agreement (CSA), Coal Supply and Transportation Agreement (CSTA), Gas Supply Agreement (GSA) / Gas Framework Agreement (GFA) and etc.

The ICPT is calculated based on an estimated actual fuel cost and generation specific costs for a particular six (6) months period against the corresponding baseline costs in the Base Tariff.

This ICPT tariff rebate will be applicable to all customers except Domestic customers with monthly consumption of 300 kWh (RM 77.00) and below.

Domestic customers with monthly consumption of 300kWh (RM 77.00) and below were not affected in the previous tariff reviews i.e.:
1. Tariff rate for Lifeline Band consumers (0-200 kWh) has been maintained at 21.8 sen/kWh since 1997; and
2. Tariff rate for 201-300 kWh band has been maintained at 33.4 sen/kWh since 2009.

Furthermore, the Government will continue to subsidise around 1 million Domestic customers under the Lifeline Band with monthly bill of RM 20.00 and below. Therefore, these customers will not be affected by this ICPT tariff rebate.

4. Others

(those efforts that are made by various foreign countries, international organizations, local governments, private sectors, etc., and that have effects to promote energy conservation in one’s own country)
ASEAN-Japan Energy Efficiency Partnership (AJEEP) Scheme
Buildings Sector Energy Efficiency Project (BSEEP) (2010-2017)
Industrial Energy Efficiency for Malaysia Manufacturing Sector (IEEMMS) (June 2011–December 2016)
ASEAN-Japan Energy Efficiency Market Transformation with Information Provision Scheme (EMTIPS)
ASEAN-SHINE on Aircond and Lighting
APEC Expert Group on Energy Efficiency and Conservation (EGEEC) & APEC’s Energy Working Group (EWG)
ASEAN-German Energy Programme (AGEP)

5. Contact

A. Ministry of Energy, Green Technology and Water (KeTTHA)
Block E4/5, Government Complex Parcel E,
Federal Government Administrative Centre,
62668 Putrajaya Malaysia.
Tel : 03-8000 8000
Fax : 03-8889 3712

B. Demand Side Management Unit,
Energy Management Development & Services Quality Department
Energy Commission,
12, Jalan Tun Hussein, Precinct 2, 62100 Putrajaya
Tel: (603) 8870 8500
Fax: (603) 8888 8637