Issue 3 | JULY 2012
A New Act Comes into Play

Energy conservation practices are set to become the norm in Singapore for large energy users. From April 2013, companies that consume more than 15 GWh of energy each year will have to comply with minimum energy management standards outlined in the Energy Conservation Act (ECA). This Act, passed in Parliament in April, is aimed at promoting energy conservation, improving energy efficiency and reducing the negative environmental impact of carbon emissions.

So how will the ECA impact the way companies use energy? Firstly, large energy consumers will be required to appoint an energy manager. They will also need to submit a report on their energy usage. Last but not least, they will need to submit energy efficiency improvement plans.

The Act aims to help Singapore achieve a 35% improvement in energy intensity by 2030, from 2005 levels, and seeks to improve the energy performance of companies, enabling their competitiveness in the global economy. For companies investing in energy efficiency, the ECA will provide support by complementing current schemes and capability building programmes.

Speaking in Parliament earlier this year, Dr Vivian Balakrishnan, Minister for the Environment and Water Resources, said that for Singapore to remain prosperous and secure, we must learn how to get more power, lighting and cooling from a lesser amount of energy. He also shared that Singapore’s citizens and corporations should focus on achieving breakthroughs in energy efficiency through more rigorous energy management practices.

As a net importer of energy resources and a country that is alternative energy disadvantaged, the Act will enable Singapore to pursue a sustainable growth path through better management of energy use. The ECA not only provides consistency in energy management across industry, but represents a major milestone in the Government’s efforts to promote energy efficiency and conservation as a competitive advantage for Singapore.

Even before its implementation next year, the Act carries one clear benefit – it consolidates all energy efficiency-related legislation across various sectors – including the Mandatory Energy Labelling Scheme for households and the Fuel Economy Labelling Scheme for passenger cars. This co-ordinated approach to setting standards for energy efficiency across all sectors is a key objective of the Act. The Act will be jointly administered by the Ministry of Environment and Water Resources (MEWR) and the Ministry of Transport (MOT). MEWR will oversee industry and household related measures while MOT will oversee measures for the transport sector.