SAVE REBATE PROGRAM: BEFORE THE KICK-OFF

It took  me some time to write this part of SAVE program since a lot happened before the program finally launched. I need time to recall some of the key things that I believe would be useful to be shared and can be referred for anyone who may want to introduce better program based on SAVE's model and experiences. Many lessons learnt too from the initial stage and in the preparation for it.

EPP9, OGE under ETP was designed to kick-off and later to be sustained through the national level EE policy and regulatory structure. Brief overview of EPP9 is indicated below.

The  planned implementation targets for EPP9 

Initially, SAVE program was suppose to be implemented and monitored by ST as stated in the initial documents proposed to PEMANDU in the NKEA Lab. In ST, among the key scopes of the Demand Side Unit which I was the head in the same time were...

• To promote and increase awareness about energy efficiency(EE) practices among Malaysians

• Implement voluntary energy efficiency rating and labeling for electrical appliances

• Implement existing EE related acts, regulations and propose new/changes in EE related laws.

Two main reasons on why  I proposed ST to be the lead agency to implement EPP9 was to commit ST to allocate more internal resources  especially the staff in my unit  and  enhance the implementation of EE measures within its jurisdiction. At that stage the unit was already overloaded with works but insufficient staff and on top of that ST had been the only agency that has regulatory roles in EE as indicated above under the acts and regulations

One of the key elements in every EPP, it has the proposed features to ensure the sustainability of each initiatives by 2020 and beyond. My thinking when I proposed initiatives for EPP9 , one of the ways to sustain the initiatives is by making them mandatory using available provisions in the existing laws such as  for EE ratings, EE  labelling  and  energy management for buildings. My understanding was, the enablers in the acts could be used to come up with new regulations to regulate the   above mentioned items.

So, by having EPP9 under ST, I hoped further actions could be taken to sustain some measures in EPP9 using the regulatory tools that ST would be able to introduce and implement as well. With the policy directives under ETP which includes EE, I had big hopes that ST would strengthen its resources to meet the needs of its existing scope of works and in the same time contributing to the sustainability of the implementation of EE initiatives in EPP9.

Unfortunately I was wrong and literally I received no positive response from the management of ST. I was only allowed to do my works as usual despite their knowledge the development of EPP9 as I updated to them from time to time since I was in the lab.

Looking the other duties that need to be carried out by ST, I was fully understood and accepted the fact that it was tough to draw their attention more towards EE since there have been many more areas such as electricity supply and security, safety and etc. Out of so many provisions in the acts under ST, EE has been so little covered. So, for EE to compete with others, it was a tough thing to do. It tried many times within my capacity through suggestions and some proposals on the way forward on EE implementation but until I left, no clear signs that they are willing to consider it.

I became the head of the Unit on acting basis from end of 2008 and made permanent in February 2009. I started with one clerk allocated to me and later joined by one executive in mid of 2009. In May 2010, we were joined by another one executive, historically; EE was under one dedicated department in ST before I came in with a director, two deputy directors, executives and support staff. Suddenly the department was disbanded sometime in early-mid 2008 when I was told that ST will no longer perform EE functions. 

Then, the decision was made and ST will have to perform EE functions again but the all staff in the previous department has been reassigned to other departments within ST. When, I accepted the works, I was fully aware about the resources that I would have and I took that risks with a hope things would become better as I move on. I assumed, I would be given sufficient supports if the need arise for me to have more staff to perform functions and duties of the unit. 

My unit literally was required to assume the same functions but the different was, we started with only two staff. I send few proposals to request to strengthen my unit with the justifications as required and carried on performing duties entrusted to my unit but it only met with no further actions. 

Despite being an under strength unit and all the above shortcomings, I kept my focus to deliver what I need and suppose to deliver with resources that I had. From 2008 until end of 2010 my unit managed to accomplish some key duties that used to be delivered by one department.

Among them were...

1. Developed and introduced EE criteria for additional 6 appliances and material

2. Developed and introduced EE rating and labelling for additional 2 electrical appliances

3. Prepare implementation plan and started the enforcement of Efficient Management of Electrical Energy Regulations 2008

4. Conducted national level awareness program on the enforcement of the regulations

5. Conducted more than 40 EE awareness activities such as seminars, dialogues, forums and talks through cooperation and collaboration with related organizations such as FMM, SIRIM, MREPC, MAESCO, CETDEM, FOMCA, private companies and other government agencies and regional offices of ST.

It was in December 2010 when the management decided after the management retreat on the way forward for EE in ST. I would conclude it as no more future for me to pursue my EE agenda at ST because the management has made a resolution that EE functions in ST would handed over to another suitable agency gradually.ST has made it very clear to me that they would like to focus more on economic regulation and some of the functions including EE would either to be outsourced or to be handed over to more suitable entities.

That was sad and also good news to me at that particular moment. I was sad because I had a dream since I joined ST which was to bring EE to the next level with ST as my platform. With the resolution, I would not be able to fulfil that dream. The good part was, finally I have something certain with the news and I knew that I had to make a move and find other platform for me to further pursue my career in EE.

I do appreciate and thankful to everyone who gave me the platform to do what I would love and passionate to do which is EE in ST. I had many great times and opportunities to learn more on many more angles in EE. Being a regulator to promote EE at national level and also involved with some works in the development of EE related policies and strategic decisions made me see EE from much better and wider perspective. I also had the chances to interact and exchanged views with various levels of people from many organizations at national and international stages. I do believe improved many things in me such as new knowledge and skills pertaining to EE implementation, technologies and etc.

One of the sweetest memories when I was in ST or in the government was when I was able to share my visions for EE in Malaysia with others. The best part was I had many avenues to do that especially when I was invited to speak on EE topics and events in Malaysia and abroad.

I was about to leave ST in October 2010 to make a return to a private sector after all my proposal to enhance and improve EE implementation in the  line of  my duties  and under EPP9 in ST were hitting the wall and faced with almost  Zero consideration from the management. I observed and personally assessed on how they responded to all my suggestion and proposals to enhance and strengthen the implementation of EE to give more impacts especially from the time I was made the permanent unit head and after my return from the NKEA lab. Finally I concluded the answer was NO and I had after that I have to the answer to myself too...My answer was...I must leave and will leave nicely.

However I must thank ST for allowing me has another shot at EE by agreeing to the request by the ministry for me to be seconded and to be based at the ministry to head the implementation of EPP9. I heard about that sometime in November and it was confirmed in December 2010. It did not take me long to make the decision since I was very much involved in EPP9 from its early days in the lab and having the chance to transform something conceptual to a reality in the implementation was considered new and fresh challenge for in EE.

I knew that my tasks to implement EPP9 would not be easy and in the way forward when EPP9 started, PEMANDU had its own dedicated officers to monitor the progress of each EPP through as strict and close monitoring and management Structure as summarized as below.

The management and monitoring structure of EPPs for each NKEA by PEMANDU

Worked together with PEMANDU in the lab for two months did give clear ideas on what to expect from them in the ETP implementation. It would be all about delivering the results as projected from each EPP. I truly believe I was ready to take up the challenge and deal with some risks in my EE career...that what made me accepted to offer to lead EPP9 team at KeTTHA.

I must also thank the ministry for entrusting me with the tasks to implement EPP9 on behalf of the ministry although that required me to leave my works and a very nice and new office at ST where I was already comfortable with. It was not a promotion or anything similar to that since I my payroll was still under ST with the same benefits. One more main reason why I decided to take up that offer was I had the believe that it may be the way where I still can contribute in promoting EE in the country from within the government. My passion for EE kept me and to be honest, I was not so sure what really awaited me ahead when I took that offer. I followed my heart, I believed in myself and the cause of what I was trying to pursue for EE in my career.

EPP9 in ST (November-December 2010)

The biggest challenge of implementing EPP9 was to have everything ready as proposed by the EPP owner and agreed by PEMANDU at a very tight timeline. ETP was launched in October 2010 and EPP9 must kick-off by 2011 which means, all preparatory works must start immediately after the launching.

I had already started several consultation sessions with key stake holders, industry and professional associations, TNB, NGOs and etc to gather their inputs and feedback on how to develop the most practical and realistic  mechanisms to implement EPP9 OGE. It was sometime between Oct- November 2010 after the ETP Launching. 

Then I started some initiatives to develop the implementation mechanisms for EPP9 immediately as required by PEMANDU.

Due to lacking of internal staff with my capacity as the Head of Demand Side Management Unit, I knew it that it would be impossible for us to come up with anything quick from within ST. As a temporary measure, one junior officer from other project in the ministry was sent to assist me at ST on need basis.

Despite that assistance I still had limited resources to really sit down and have proper discussions with people who really have the deep understanding or know-how about the proposed initiatives under EPP9.

Bear in mind that I have 5 key initiatives under EPP9 that required detailed mechanisms of implementation and must be together with the time frame. I started with the development of mechanisms to implement rebate programs which covered rebate for energy efficient products for refrigerators, split unit air conditioners, lamps and chillers.

Then it was followed by the mechanism to implement energy efficient insulation for buildings and energy saving measures at government buildings.

That was the time I remembered about my experiences in developing the EE criteria for equipment and appliances for incentives application and EE labelling where I formed several working groups (WGs) and members for each WG were representatives from organizations related to that particular equipment or appliance. So what I decided to do...

1. Identified and shortlisted relevant experts and related organizations that have interests in each initiative

2. invited them for a special briefing on the objectives of EPP9, how they would benefit from it and explained to them on what assistance and commitment required from them

3. Informed them about the formation of the WGs and nominate their representative(s) to become a member should they interested

My strategy was to use the rebate program as the incentives to manufacturers and importers to produce/import more energy efficient products in Malaysian market and only products that meet the agreed criteria will qualify for consumers to enjoy the rebates.

On top of that, logos for qualified brands will be promoted at all awareness and promotional activities, printed and electronic media under the national level campaigns from the  special budget allocated for that purposes for 3 years from the launch of the rebate program.

The initial proposal in EPP9 was to include energy efficient lamps which are to replace fluorescent tube lamps from T8 type to T5 type for consumers. However after further discussion, at one stage we were informed by the ministry that they already had a plan for energy efficient lamps for consumers where initial works already started with other allocated budget. So, we agreed to exclude lamps in EPP9 and re allocate EPP9 budget for lamps to other three items by increasing the total units of each type of product that would be eligible for rebates and in the same time did not reduce the targeted energy savings.

I managed to form all the required WGs while was in ST until Dec 2010 and for some items, with the WGs, we managed to have few meetings that produced some basic mechanisms for the implementation. Among the earliest were the mechanisms for refrigerators, air conditioner and chiller mainly due to almost of the members were from the previous working groups that formed for EE incentives and labelling. 

The initial criteria agreed for the rebate at that stage are as follows:

1.    5-Star rated Refrigerator with capacity less than 400 liters 

2.   5-Star rated Air Conditioner with capacity up to 25,000 Btu/h for wall mounted split unit type

3.  Chiller for the purpose of comfort cooling at commercial buildings installed for 15 years or more before the launching of the launching of the program in 2011.

Rational of the selection of target group of domestic users of electricity who consumed 200kWh to 400kWh a month and refrigerators capacity up to 400 litres as qualification criteria for the refrigerator's rebate

• Targeted the mid -low income group (monthly electricity bill of RM43.60 to RM117.00).
• Based on data from TNB, there were about 2.5 million are included in this group, while the number of units offered  for rebates for refrigerators  is only about 100,000 units.
• Refrigerators with the net capacity up to 400 litres are the size of the mostly used by the middle class while the high-income group is able to buy a refrigerator with a capacity larger than the size.
• It is expected that this mid-low income group may decide to buy for the conversion of the old refrigerator as soon as possible and when they  have the purchasing power  resulted from the rebate as the period of time to make the purchase is set for only a month after the voucher printed.
• The selling price of most models of refrigerators is the 5-Star at that time was quite high compared to regular models. Statistical models of the 5-Star rated and the market sale price available from the manufacturers are shown in the table below.

Price (RM)	Total Model
600-700	3
701-800	3
801-900	8
901-100	2
More than 1,000	68
Total	84

• A total of 68 types of 5-Star model from the entire model on the market are priced at RM1, 000 and only about 16 models priced less than RM1, 000.
• The consumer electricity bills of RM20 per month (92 kWh) are enjoying free electricity as announced by the government in the 2010 budget and 2011.
• Users who have electricity bills exceed RM20 to RM43.40 per month or monthly electricity consumption per month 93kWj 199kWj are expected low-income earners who lack immediate purchasing power to buy a refrigerator a 5-Star which is more expensive.

However, the restriction on the qualification criteria will be reviewed based on the progress of the program after the launching

________________________________________________________________

I considered myself quite fortunate that I received continuous supports and encouragement from key players in the industry from the beginning of the process to implement EPP9. This may be due to we used to work together in  other EE initiatives before which were proven to give benefits to all interested parties other than the consumers.

Then I moved to be based at KeTTHA from 5 January 2011 and my new post was the Head of EPP9 Project Unit of KeTTHA where I reported directly to the undersecretary of sustainable energy at KeTTHA and in the same time reported to ST on need basis on the progress of EPP9.

I left ST physically from 5 January 2011 and  I made it very clear to my management  that I would not return to ST should ST carry on with the way they perceive on the implementation of EE after the end of my secondment period by the end of 2011. I would either carry on with whatever opportunities in EE that may come to me from EPP9 implementation or make a return to a private sector which I was in before I joined ST in September 2004.

My approach in EE is quite simple, when I entrusted to perform certain duties; I always wanted to deliver my very best and then bring it to the next level where greater benefits could be achieved. In ST, I felt that I was not allowed to grow anymore and my constant requests in enhancing the functions of my unit to implement EE initiatives as prescribed in my scope of works met with resistance and rejection. 

So finally made my own conclusion that they were not interested to bring EE to the next level and I have to make the tough call to find avenue to carry on doing something in EE although I might be seen taking steps backward which was fine with me.

EPP9 Team at KeTTHA (Jan 2011-September 2011)

Getting the team together and to share the same goals on SAVE Program

In KeTTHA, I was placed in one temporary space as my office at level 5 of the building. The room was shared with another project team under KeTTHA which focused on RE implementation. There were 7 of us shared the space. The room was far less convenient compared with my office in ST too but it was non issue to me at all.

The  space for RE Project team and  the head of EPP9 Project at KeTTHA

KeTTHA allocated 5 junior officers to be with the EPP9 Project team that I was heading. Immediately I assigned to take charge of each key initiative in EPP9 for the implementation as follows:

1. Ishamuddin Mazlan - Government Lead by Example & Insulation
2. Sarimah Sabri - Rebate for refigerators and air conditioners
3. Mohamad Najmi Abdullah Sani -Rebate for refigerators and air conditioners
4. Rohani  Abd Wahab - Campaign
5. Mohd Amirshaifulrazain Bin Abu Zaini- Rebate for chiller & Insulation

Later they were joined by Nurul Akmal Binti Abdul Kadir and Nur Amalina Asilah Binti Sazali from late July 2011  

All of them were contracted staff with KeTTHA and already in KeTTHA from 1-2 years before they joined me. I also already met them frequently when I came KeTTHA for meetings on EE related matters before and when they were assigned in my team, we had problem to interact from the start.

They were inexperience and what I did was, I shared with them what was exactly the my visions for EPP9 other than what stated in EPP9 proposal and how EPP would be something interesting for them to experience too. I was told by Puan Badriyah that they were among the best that she could assign to me too and after sometime, I felt that she was absolutely right.

I also shared with them my sincere hopes that I wanted them to learn something useful from the project for their career development and grow or learn new skills in the same time too. 

Along the journey when we implemented EPP9 together, I had my own strategies to ensure they would be able to develop skills that will benefits them even though they may work elsewhere later. Among the skills I would like to acquire or improve were reporting, communications and public speaking. I made sure all of them had the experiences doing all of that with me there to give direct comments and guidance.

Budget Allocation, Targets and KPIs of SAVE Rebate Program

Below is the summary of total investments and intended targets for SAVE rebate program for the year 2011 however the one-year period was extended until 2012 due to the delay in the launching the program which was on July 2011 instead of March 2011 as initially planned.

Total budget allocation, savings and GNI targets for SAVE Rebate Program

On top of that, another RM5 million was allocated for the same period for a  national level campaign to the public to increase awareness on the program and the importance of using energy efficiently in their daily life.

The goals was  to increase  market share of 5-star appliances and energy efficient equipment based the data on 2010  for targeted users as follows:

•5-star rated Refrigerators : 13% of market share based on 2010 data

•5-star rated Air-conditioners: 8% of market share based on 2010 data

•Energy Efficient Chillers Chillers (MS1525 standard) :35% of market share based on 2010 data

Total allocation of rebates according to each state.

KEY PLAYERS IN THE IMPLEMENTATION OF SAVE REBATE PROGRAM

Who were behind the SAVE Rebate program?

I  think I can simply say that SAVE rebate program was one of a good example of how the government and private  sectors worked together to achieve common goals for the benefits of consumers and in the same time all parties also reaped some benefits. I knew it from the beginning that I would not be  able to get EPP9 even to kick star if I was thinking of doing it form resources that I had in ST or with my team for EPP9 in KeTTHA.

What I did was, I pulled all parties together that I knew from each segment of the industry and new parties that I identified could play significant roles to deliver the program according to the intended goals. A win-win situation was the key idea in this luring them to be a part of the program.

·         Consumers will get cheaper price for 5-star rated products and energy efficient equipment.

·         Manufacturers will get the increased sales with the campaign and free publicity of the products throughout the program.

·         The government would be seen implementing program that will benefit directly the people from the purchase cheaper energy efficient products, promoting energy efficient lifestyle and contributing the better comfort in life too.

When all that packaged under SAVE, all of them were keen to be a part of it.

Many did not know who really behind the SAVE rebate program and here I would like to record my appreciation to every single of them.

The proposed main structure of the implementation and management of the program is as follows:

The proposed  key agencies in the implementation of EPP9

For SAVE Rebate Program

Program Owner: KeTTHA

Program Leader: Sustainable Energy Division in KeTTHA

Implementation Team/Secretariat:

EPP9 Project

Implementation Partners:

Rebate for 

• Refrigerators  and Air conditioners
• Suruhanjaya Tenaga
• Peninsular -  Tenaga Nasional Berhad (TNB)
• Sabah -  Electricity Sdn. Bhd. (SESB)
• Sarawak -  Syarikat SESCO Berhad
• Rebate for chiller
• MASHRAE
• ACEM
• IEM
• SIRIM QAS International Sdn Bhd

With cooperation:

• Malaysia Electrical Appliances Distributor Association (MEADA)
• Federation of Malaysian Electrical Dealers’ Association (FOMEDA)

With participation:

• Refrigerator, air conditioner and chiller manufacturers

Refrigerator & air conditioner

Chiller

The overview of the implementation and organizational structure is presented in the chat below.

Sub-committees for SAVE Rebate Program

 LISTS OF INDIVIDUALS FROM ORGANIZATIONS INVOLVED IN MANY STAGES AND TASKS IN THE IMPLEMENTATION OF PROGRAM FROM THE VERY BEGINNING.

Electricity Supply Companies

TNB Distribution	Ir. Nirinder Singh Johl
	Datin Siti Laila Sri Asih Binti S. Garieb
	Fatisha Adila Bt. Rosli
TNB ICT	Zuraidah Hassan
	Pn. Azira Bt Mohamad Amin
	Cik Zarina Khairuddin
	En. Ahmad Hasree Abu Samah
TNB HQ (Finance Group)	Isfaiza Marsayid
	Shahriza Binti Shahrudin
	Toh Chin Ping
	Prisiliawatie Binti Sahimi
TNB HQ	Mr Sansubari
	Mrs. Nazariah Ibrahim
SESCO	Nurafiza
	Christina Lai Nien Yien
SESB	Pn. Zunaidah Osman
	Pn. Siti Zaleha Musneh
	Ili fadilah
	Razaliegh Bin Mohd Zain
	En. Ishak Palle

SIRIM QAS International  Sdn. Bhd

Ms. Nur Fadhilah Muhammad	Chiller (Technical evaluation Committee Members & group 2 verifiers)
Hj. Basori Hj. Selamat
Md Adha Rahmat
Mrs Anita Marzuki	Refrigerators, air conditioner (testing facilities)
Mr Mohd Fairuz Zainudin
Mr Mohd Zamri Mustaffa
Mr Mohd Azmeer Ahmad
Mrs Sharifah Jusoh

Technical  Evaluation Committee Members

(Chiller rebate application)

Ir. Ng Yong Kong	ASHRAE Malaysia Chapter
Ir. LAM Kim Seong	ASHRAE Malaysia Chapter
Mr. Chen Tham Leong	Association of Consulting Engineers
Ir. Lee Kok Chong	Institute of Engineers Malaysia ( Electrical Engineering Technical Division)

Brand owners/Manufacturers(Chillers)

Mr. Wong Fook Kee Tommy	Carrier (M) Sdn. Bhd.
Kong Wai Yang	Carrier (M) Sdn. Bhd.
Mr. Md. Amir Bidin	Carrier (M) Sdn. Bhd.
Leong Har Wai	Carrier (M) Sdn. Bhd.
KS Cheok	Carrier (M) Sdn. Bhd.
Beh Hai Hong	Dunham-Bush Sales & Services Sdn. Bhd.
Wong Siak Pong	Dunham-Bush Sales & Services Sdn. Bhd.
Mr. Chan Hon Leong	OYL R&D
Mr. Chin Wai Meng	OYL R&D
Mr. Yeow Tee Siong	OYL R&D
Mr. Gan Shiau Jeong	OYL Manufacturing Company Sdn Bhd
Mr. Lim Soon Kiong	OYL Manufacturing Company Sdn Bhd
Yeo Sek Chiong	Smartech Industries Sdn. Bhd.
Mr. John Wu	Trane Malaysia
Mr. Kelvin Lim	Trane Malaysia
Chia Yew Wei	York M'sia
Teoh Wah Chung	York M'sia
Ng Chee Meng	York M'sia
Vineeon Yeoh	York M'sia
Ms. Lim Lay Sian	York M'sia
Ms. Wong Lee Tieng	York M'sia
Mr. Koh Hwee Yewh	Trane Malaysia Sales & Services Sdn Bhd
Mr. Alan Tan	Trane Malaysia Sales & Services Sdn Bhd
Brand owners/Manufacturers(Refrigerators & Air conditioners)
Mr HH Beh	DUNHAM-BUSH
Mr Tommy Wong Fook Kee	CARRIER
Mr Kong Wai Yong
Mr Md. Amir Bidin
Mr KS Cheok
Mr Leong Har Wai
Mr. Lee Kuan Fong	ELECTROLUX
Mr. The Yeow Tee
Mr Lee Yee Sang	DAEWOO
Mr SM Seow	LG
Mr LY Yan
Mr Tan Yi Fang
Peter Ting Nik Lim
Ms Shermain Ong	MIDEA
Mr PH Tan
Mr Mazlan Janor	PANASONIC
Mr Ruslan Rejab
Mr Steven Yap
Mr Low Seng Chok
Mr Lwi Chee Meng
Mr Eric Low Siong San
Mr Faizal Chew	SHARP-ROXY
Mr Abdul Hamid Ismail
Mr Jacky Heng
Mr Chan Hon Leong	OYL R&D
Mr Chin Wai Meng
Mr Yeow Tee Siong
Mr Gan Shiau Jeong
Mr Lim Soon Kiong
Ms Edwina Chai	PHILIPS
Ms Roselin Nona	PIONEER
Mr Leslie Tan	SAMSUNG
Mr Chia Yew Wei	YORK
Mr Ng Chee Meng
Mr Teoh Wah Chung
Ms. Lim Lay Sian
Ms. Wong Lee Tieng
Mr Kok Bee Gaik	MITSUBISHI/MELCO
Ms Cecilia Chin
Mr Tan Jing Suan
Mr Mohd Azam Kang	HITACHI
Mr. Cheong Kok Chun
Mr Juhri M. Yasin
Mr Ng Hock Seng
Mr Roslan Ismail	SANYO
Mr Tay Lee Weh	ACSON
Mr Kong Yuen Tze
Mr Haily Bin Husin	FUJIAIRE
Mr Tan Suk Wah
Mr Yau Kah Wei	FUJITSU
Mr Seah Kah Keong
Mr Yeo Sek Chiong	SMARTECH
Mr Koh Hwee Yewh	TRANE
Mr Alan Tan
Roslan Ahmad Tajri
Kelvin Lim
Ms. Bee

Industry associations for electrical appliances

Mr. SM Chew	MEADA/ JVC
Mr. V. T. Doshi	MEADA/ PHILIPS
Mr. Foo Wai Fun	MEADA
	FOMEDA

PR & Campaign Consultants

Ming KH & Associates	Ms Ming Chong
	Mr Cheah Chay  Tiong
	Mr Nicholas Leong
Integricity	Mr Eugene Lim
	Ms Serene Yeoh
	Ms Wong Wei-Li
Creative Juice Sil	Ms Yee Huit Sin
	Mr Royston Derozario
Fluorescent squid	Mr Azhar Mohd Yasin
	Mr Badrul Hisham

I may have missed some names and organizations in my list here but whoever was in the program was equally important to ensure the success of the program.

DEVELOPING AND FINALIZING THE IMPLEMENTATION MECHANISMS

Rebates for Refrigerators and Air Conditioners

The development of the web-based rebate vouchers printing and rebate claims processing systems with TNB for Refrigerators and air conditioners

There were several ideas have been considered during the consultation with the WG formed to develop the most practical and secured mechanism for the rebate program. Lessons learnt from other countries showed the success of the rebate program also depending on the effectiveness of the rebate distribution such as user-friendly, less bureaucratic, easily accessible to users and retailers and etc.

Initially, the idea was to print the voucher in hard copies and then distribute them at selected locations. Then, users will claim the rebate from authorized entities. Few more options involving users, retailers and brand owners in the distribution and refund for the rebates were also considered but finally, there was an idea from Mr Ir. Nirinder Singh Johl who is now the General Manager, Customer Service & Marketing at TNB Distribution to have the web-based system. The only issue was we need to design and develop the system especially when no such method has been tried for any rebate program before for appliances.

The key concept of the idea was to get consumers to print the voucher online from any place that has internet access.

Then they will go to participated retailers to make the purchase. Participated retailers will have to verify the voucher using the web-based online system as well and sell the product consumers at discounted price based on amount of rebate given. 

Then, retailers will submit their claims for purchased made to entities authorized by the ministry and get paid based on amount claimed. To avoid possible abuse, voucher only allowed to be printed based registered account number with the utility company and once printed, the same account number will no longer allowed by the system to print more vouchers.

When retailers have confirmed the purchase using each voucher, the system will lock the voucher's serial number and no longer valid for any log in by other retailers using the same number.

To avoid, having people keeping the voucher too long before making the purchase and stop others who want to get it, each voucher has its own computer generated  serial number and valid only at certain period (one month) from printed date. Once expired, the system will open that expired voucher to others to print from the system.

The big advantage of the proposed method is instead of managing hundred thousands of consumers who will submit the claim; the ministry will have to manage hundreds or few thousand of retailers who will participate in the program.

One more thing, they will be no issue of numbers of vouchers to be printed in hard copies since it will be printed by users themselves. If they lost their hard copy, reprinting is allowed by the system and they will get the same voucher with the same serial number.

The budget allocated for the rebates was agreed to be credited into one dedicated account opened by each utility company and later to pay claims submitted by retailers for purchases made using rebate vouchers.

We had quite a number of meetings and discussions to argue and to look from all angles before I could finally able to finalized the implementation mechanism and procedures.

Among the meetings and discussions that we had were with...

• TNB,SESCO, SESB
• TNB IT team
• Brand owners/manufacturers
• Product retailers and dealers
• Divisions within the ministry such as Sustainable Energy, PR and Development
• NGOs such as FOMCA and CETDEM.

In general, all of them really showed their commitment and on-going supports from the start and throughout the implementation stage.

The web-based system then was presented to all members of the WG and also to interested parties such as retailers and also the management of all utility companies. It was agreed by everyone with some amendment made based on their feedback and the IT Team in TNB was assigned to develop the system within the targeted time line.

There were several issues raised to but through consultations and objective discussions we managed to agree and disagree to come up with win-win solutions. The fact was, each us was not really sure what we really could expect because the scale of the rebate program and the new way of doing it with the web based system has never been tried before.

So, everyone was excited and cautious in the same time on how would the response from the consumers.

Once again I must thank everyone who was involved and spent their time at that stage.

IMPLEMENTATION PROCESS FLOW: REBATES FOR REFRIGERATORS AND AIR CONDITIONERS

The rebate voucher issuance, purchasing and redemption process flow

Web-based system for consumers and retailers

• TNB/SESB/SESCO- receive  and verify rebate claims by retailers with guidelines by KeTTHA
• Process and pay rebate claims to retailers
• Administrator(EPP9 Project Team)- monitoring and reporting

Qualification criteria for consumers

Refrigerators

• Peninsular Malaysia

Domestic consumers using electricity at 200-400kWh average per month in six months (Dec 2010-May 2011) at TNB registered premises

• Sabah, FT Labuan, Sarawak

Open to all domestic consumers registered with SESB/SESCO

Air conditioners

• Peninsular Malaysia

Open to all consumers at TNB registered premises

• Sabah, FT Labuan, Sarawak

Open to all domestic consumers registered with SESB/SESCO

Participating retailers

• Authorised retailers by Brand Owners
• Registered with KeTTHA in the web based system

Official SAVE Rebate Websites

They were two official websites for SAVE program

i)             www.saveenergy.gov.my 

This is the main site where the contents provided by the EPP9 team and the designs and administration by Integricity. This site has general information on SAVE program and has link for consumers to get rebate vouchers and companies application forms for chiller rebate.

ii)            www.saveenergy.gov.my/retailer website was developed jointly between EPP9 Project Team, TNB Distribution Customer Service Team (Lead and coordinator in TNB), TNB IT team (system concept, design, development, testing and commission and User Acceptance Test and the digital media consultant and Integricity (the design of the system visual skins). I would like to elaborate more on this because I also learned something new and interesting in the process.

As I mentioned earlier, the initial idea of the online system to get the rebate voucher was from Ir. Nirinder. The idea was accepted after a few discussions with other members in the sub-committee. There were several possible issues that we anticipated and below were the issues discussed and also counter measures for each of them.

Issue	Counter measure
Not all consumers have access to internet especially at rural areas	For those who do not have internet access, they could log in through any customer service office of TNB, SESB and SESCO and also at all participated retailers’ sales outlets.
Concerns by retailers that they may have to wait too long to get their claims from the electricity supply companies	TNB, SESB and SESCO agreed to ensure payment will be made within maximum 2 weeks from the date of claim upon submission of complete supporting documents. Retailers are allowed to submit their claim at anytime with no restriction on how many claims that be submitted within certain time after the purchase made.
Possible someone printed one voucher, make copies and sell to others.	The moment one voucher with one serial number locked by any retailer at any location using the online system, any copied voucher with the same number will not be able to be used by other participated retailers. So, if anyone trying to make copies of any voucher and try to cheat by selling it, they have to face their own risks from their buyers when the voucher could not be processed by the retailer.

Then we formed a special team comprised of members from EPP9 (headed by me personally and En. Najmi), TNB IT team, TNB Distribution (headed by Datin Siti Laila), SESB, SESCO, Intregricity (headed by Mr. Eugene) and joined by En. Hudhaifa from PEMANDU to discuss and develop detailed mechanisms and contents of the online system.

We started the works sometime in early May and we had to work on a very tight  timeline since the launching date was decided on 7 July 2011. TNB IT  team has to put some much efforts to design the system to ensure it would be robust enough to cater the traffic and possible security threats. In the same time, data from consumers from all the three utility companies and retailers need to be gathered and entered in the system once the system was finalized, Then the testing and commissioning of the system to ensure it will work smoothly before the launch. This  exercise also was also enabled me to experience the whole process through about twice a week meeting continuously with the team such as witnessing step by step the online system development process and User Acceptance Test(UAT).

We faced some problems and issues along the but with everyone had the same one goal for the national program, the system was ready to kick-off exactly within 24 hours before the launch! I must say this again, TNB especially the IT team was excellent and other members in the team were brilliant too to pull their acts together to make it happen!

I must also mention it here that all extra tasks that agreed to be performed by TNB, SESB and SESCO by their personnel at all their customer services offices throughout the whole implementation of SAVE rebate program were at no additional cost to the government. I had the chance to meet almost of the senior management team of all of these companies and I was so impressed and thankful for their commitment to look at the program as something will benefit the people and they were happy to cooperate and contribute by  playing their roles.

Program’s Website for Retailers:  www.saveenergy.gov.my/retailer

• Authorization to be used by participating retailers only
• Voucher verification
• Lock-in completed voucher redemption/purchase made
• Retailer’s profile
• Check status of redemption process and payment by utility companies

Retailer’s registration into the website

• Information required to be submitted to KeTTHA
• Company - name, registration number & address
• Bank - name, account number & account holder
• E-mail address
• Contact number, fax number
• Each retailer will be given their own password (later can be changed individually by them) to log in into the system upon submission and verification of all required documents by TNB IT team.

Figures below showed the content of the system and steps involved in using it at the website

OFFICIAL SAVE REBATE PROGRAM’S WEBSITE FOR CONSUMERS

www.saveenergy.gov.my

• General information and updates
• Eligibility checking
• Voucher printing
• Frequently asked Questions and Answers
• Road show dates and venues
• List of retailers
• List of 5-Star Rated Products and Recommended Retail Price
• Interactive Energy Efficient applications
• Announcement and Updates

Figures below showed the content of the system and steps involved in using it.

Documents Required From Each Buyer

• A copy of the  SAVE Rebate Voucher
• At least with voucher number and validity dates stated in the voucher
• Coloured/Black and White accepted
• A copy of recent TNB electricity bill
• A copy of the IC of the buyer
• Not necessarily the same name as in TNB electricity bill

Document Required For SAVE Rebate Claim Submission to TNB /SESB/SESCO

• Proof of purchase
• Official receipt
• Invoice
• Authorized documents
• A copy of the  SAVE Rebate Voucher
• A copy of recent TNB/SESB/SESCO electricity bill
• A copy of purchaser’s IC

Where to submit the claim and the Rebate Payment Terms

• To any nearest  TNB/SESCO/SESB CSO Offices
• Payment will be made electronically to the company’s bank  account
• Proof of submission will be issued by Kedai Tenaga for each submission
• Payment will be made within 2 weeks/10 working days (maximum) upon completion of submitted documents and information

Others

• Claims of rebate only eligible for purchasing made from 7^th July 2011 onwards only
• Each completed purchase much be locked in the retailer’s website account in the online system
• Must obtain all supporting documents from each purchaser
• No rebate in the form of cash to be paid to the purchaser

REBATE FOR ENERGY EFFICIENT CHILLERS

To me, the process to develop the mechanism for chiller rebates was less complicated compare for rebate for refrigerators and air conditioners.

Why? One, it involved less people since the process required on professional experts in chiller system and less numbers of manufacturers .
Second, the target group is  private companies and benefits for them were quite obvious to them financially if they utilized the program.

The challenge was only to come up with system that would be practical and in the same time will enable government to measure energy performance from the chiller replacement. 

Briefings and discussions to develop implementation mechanism for chiller rebates

I was also lucky since I have been working with these chiller experts before in ST in a working group for energy performance rating system and labelling for air conditioner.

The first step that we took was to form the subcommittee for chiller rebate program by inviting all manufacturers and technical professional organizations related to chiller and technical inspection. Then we formed a technical evaluation committee which would finalize the proposed mechanism agreed by the subcommittee and then to evaluate all applications for the rebate.

The technical committee was chaired by EPP9 Project (chaired by me) and it members are from MASHRAE, IEM, ACEM and SIRIM QAS International.

Below are the detailed on the eligibility criteria, procedures and implementation process of rebate program for chiller

Eligibility criteria

1.           Applicant

Qualifying criteria for chiller rebates for applicants

2. Replacement of new chiller

A. Installation date: Existing air-cooled or water-cooled electric chiller/s that is/are still operational and installed before or in year 2002 - MUST be replaced with new water-cooled electric chiller/s.

B. Efficiency: Efficiency of the existing operating chilled water system (not only chiller/s) in kW /RT to be verified at site by an authorized verifier appointed by SEDA Malaysia.

C. Condition: The existing chiller/s to be replaced shall be part of a HVAC system and its associated subsystems of a chilled water system that is currently operational and in use.

D. Standard: Efficiency of replacement chiller/s must comply with the minimum kW/TR rating as stipulated in MS 1525:2007 (Code of Practice on Energy Efficiency and use of Renewable Energy for Non-Residential Buildings).

 Application procedure and Process flow is shown in the chart below.

SELECTION PROCESS FOR VERIFIERS

To ensure all qualified applicants to install chillers at their facilities according to the details and performance stated in the application, we have decided to from a technical assessment before and after the installation of each chiller at the installed sites. This was agreed to be done by appointing two groups of technical verifiers.

Due to unavailability of in-house technical experts who can perform the technical assessment, we came up and agreed with the idea to get assistance from professionals and  practitioners from the market because the assessment for chiller performance do require experienced professional to perform since it quite technical and specialized tasks. To appreciate their commitment and contribution, we also agreed to pay qualified professionals some token of appreciation with an honorarium for each verifier. The amount was relative small compare to their actual professional rates and at some point we did have to worry that we might not have enough professionals to apply.

One group will represent the EPP9 project team and another group is the chiller experts that will be registered by the EPP9 project team upon meeting the requirements prepared by the technical evaluation committee.

We agreed for qualified technical expert from SIRIM will represent the government as a group 1 verifier and qualified professionals in chiller to be the professional verifier in group 2. At every site inspection, the technical committee will assign one verifier from each group to submit the site evaluation report before and after the installation.

Applications to become group verifiers were opened to all interested professionals from the market.

Initially we were worry not to get enough applications to become group 2 verifier, but with the help from MASHRAE, IEM and ACEM to explain about the bigger goals of the program to air conditioning industry and ETP to their members, we received overwhelming response for the professionals. We managed to process and select more than enough verifiers  finally.

THE SHOCKING NEWS!!!

I was informed by PEMANDU about the total budget approved for EPP9 implementation in 2011 sometime in December 2010.The budget was to implement all the first two key initiatives and with the time frame given, the initial target to launch the rebate program and government lead by example initiatives in March 2011. That was agreed by WGs as well and all of us worked based on that target month.

However I received the shocking news when I returned from an official trip in Japan in the second week of February 2011. The news was the budget for EPP9 was reallocated by the government to other purposes while works for the launching at almost 70% completed. Furthermore the preparation also involved manufacturers which have increased their number of products in the market with 5-star rated models to meet the expected increase in the demand after the launching of the rebate program.

Together with PEMANDU, KeTTHA had several high level meetings and consultations to persuade the government to proceed to disburse the budget to EPP9. Despite all our justifications, our attempts failed initially to convince MoF and EPU to return the budget to us but somehow, we managed to get a slot to present our case to a meeting chaired by PM which was held at the Parliament building sometime in late April 2011. I was in that meeting too together with PEMANDU and KeTTHA and finally, we succeeded by the initially approve budget was cut to almost half. Although I knew that we had to make substantial change to EPP9 but I was still felt grateful that we secured that amount.

Our immediate steps after that were to prioritize initiatives in EPP9 with the newly approved and less budget. I proposed we continue with the rebate program and I told PEMANDU and KeTTHA that there were alternatives to fund the Government Lead by Example initiative for government buildings.

Due to that incident, we delayed the launching of rebate program to July and will have to explore other funding mechanisms for other initiatives.

Promotional and awareness of SAVE Program through a national level campaign

The appointment of the consultant for the campaign was done in slightly different way from the normal practice by the ministry due to our limited time available for the launching. The uncertainty of the budget before we finally had it back was the main reason behind it since with the resources that I had, I could only focus at the development of the mechanisms to implement with so many things to be detailed out and finalized.

Objectives of SAVE Program Campaign

• Launch the SAVE Rebate Program
• Educate Malaysians on the importance of Energy Efficiency practises
• Call to action to check eligibility and print rebate vouchers
• Showcase different brands and their appliances
• Drive sales for energy efficient appliances under the SAVE Rebate Programme

Goals

• Sell targeted total units by year end:
• Refrigerators – 100,000 units
• Air Conditioners – 65,000 units
• Chiller – 72,000 RT
• Greater awareness on:
• Energy efficiency
• SAVE Campaign
• Cekap Tenaga Label – Five Star Ratings

THE PREPARATION AND PLANNED CAMPAIGN ACTIVITIES FOR THE SAVE REBATE PROGRAM AS PROPOSED, DISCUSSED AND AGREED WITHIN THE ALLOCATED BUDGET

Lead Consultant :Ming KH and Associates

Key PR Activities

• Launch of SAVE Programme (7^th July 2011)
• Awareness and Promotion Campaign 

Spokesperson Skills Training (Media and  Consumers)

At the spokeperson Skills training with Pn. Badriyah and the PR Expert consultants from Ming KH Team(Ming, Nicholas, Cheah)

Training session for PR and communications for EPP9 project team members.

• Press Releases
• Pre-events for road shows

Media Interviews:

• BFM89.9 Bigger Picture
• BFM89.9 Enterprise
• The Star
• New Straits Times
• Borneo Post
• See Hua Daily
• KL FM
• Negeri FM
• Melaka FM
• Pahang FM
• Sabah FM
• Utusan Malaysia
• Selamat Pagi Malaysia
• Malaysia Hari Ini

Media Visits 

• to all major printed and electronic media organizations

Objectives

• Build relations with the media
• Educate them on how to be energy efficient within their organisation
• Can serve as a feedback session for the SAVE rebate program as well

Radio Contests

• Suria FM
• Suria Sabah
• 988
• KL FM

Key Advertising initiatives

•  Development of SAVE Logo

• First round of print advertisements:
• Theme: Save Energy, Save Money

• SAVE Program Mascot ( Improved version of KAPTEN EE, a mascot introduced by KeTTHA in the previous campaigns)

KAPTEN EE with its "Mom", Puan Badriyah Hj. Abdul Malek, former undersecretary of Sustainable Energy Division in KeTTHA.

• TV Commercial:
• Theme: Save Energy, Save Money

With the Creative Team Members from Creative Juice Sil who proposed and produced the TV Commercial for SAVE Rebate Program

The TVC : English version

                                  The TVC : Bahasa Melayu version

• Second round of print advertisements and
• Buntings and posters for retailers:
• Theme: Rebate Up to RM200

Media Buy:

• The Star
• New Straits Times
• Utusan Malaysia
• Harian Metro
• Sin  Chew Daily
• China Press
• Malaysia Nanban
• Daily Express
• Utusan Borneo
• See Hua
• Borneo Post
• TV2
• TV3
• 8TV
• ntv7
• TV9

Key Promotional  Events

Launch of SAVE Programme (7^th July 2011)

Major Roadshows:

• Klang Valley (Giant Kinrara)
• Pahang (East Coast Mall)
• Penang (Straits Quay)
• Johor (Giant Tampoi)
• iGEM 2011, KLCC
• Kuching (The Hills)
• Miri (Bintang Mega Mall)
• Kota Kinabalu (Suria Sabah Mall)

Mini Roadshows

• Kota Bharu (KB Mall)
• Melaka (Dataran Pahlawan)
• Alor Setar (Star Parade)
• Rennovation Expo (PWTC)
• Seremban(Terminal 1)
• Ipoh (Ipoh Parade)

Below are planned layouts and facilities provided for  the major road shows by Fluorescent Squid Sdn Bhd

Development and Production:

• Car stickers(Fluoresecent Squid)

• SAVE shirts(Fluoresecent Squid)
• SAVE bracelets(Fluoresecent Squid)
• Flyers(Fluoresecent Squid)

Key digital media initiatives
(Integricity)

• Development and maintenance of main website : www.saveenergy.gov.my

• Development and maintenance of Facebook Page and Twitter
• Social Media Skills Training for EPP9 team members and officers from KeTTHA
• How to SAVE application on website
• Play SAVE Game on website
• Online media buy

PREPARATORY WORKS FOR THE LAUNCHING

The planned agenda

Date: 7 July 2011

Venue: Auditorium Parcel E, Putrajaya

9.15 am  : Arrival of senior management of brand owners participating in the launch

9.30 am  : Arrival of guests and media

10.00 am  : VIP walk-in

10.30 am  : Arrival of YB Minister

10.35 am  : Negaraku

10.40 am  : Doa recital

10.45 am  : Speech by Datuk Loo Took Gee, Secretary General, KeTTHA

11.00 am  : Speech by YB Dato’ Sri Peter Chin Kah Fui, Minister of Energy, Green Technology and Water

11.15 am  : Launch of SAVE

11.30 am  : Press conference

12.00 noon  : Guests – End

    Media – Presentation on implementation mechanism by EPP9 Project Head

The artist impression of the launching(Fluoresecent Squid)

FEW DAYS BEFORE THE LAUNCHING DAY...

Few issues dealt with and tasks those were still incomplete 

• SAVE rebate program was seen as another form of subsidy by some of key agencies and certain groups

• Training for participated retailers on the mechanism of the implementation which was planned before launching to ensure smooth process when consumers approach them to make the purchase using the SAVE rebate voucher. We just did have the room for the training for retailers and it had to be carried out after the launching although we entered the fasting month in the month of August. To mitigate that, what we did were
• Prepared the manual and guidelines for the retailers on how to use the system from the log-in until they “lock” the purchase using SAVE voucher. Then , what is the process and documents they required to submit to TNB for claims
• Prepared Frequently Asked Questions and answers for all possible question to be asked by retailers and consumers

• The ability to attract the press to give coverage because in the same time there was another big issue on Bersih rally which was held in the same weekend after the launch  and most main stream newspapers were covering that topic as key news on daily basis

• The ability to attract enough crowds in the 700-seat capacity at the auditorium Parcel E Putrajaya where the launching took place. Due the attention and resources given to the preparation and finalization of the mechanism, the online system, implementation guidelines and etc, official invitations were sent in less than 2 weeks before the launch. We did get a very strong support and assistance by the Corporate Communication Division and its personnel of the ministry to ensure we would have enough audience to be at the launching.

Final preparatory works a day before the launching

The rehears

Ready to go!!! 

FEW HOURS BEFORE THE LAUNCHING DAY

• The web based system was met with some technical problem in less than 24 hours before the launching. Finally TNB IT team and Integricity team managed to pull it through and the system was ready  to be accessed in the early morning the launching day

• I was the most nervous person and together with every who involved from the lab in 2010 and all the preparatory works...we could only pray for what was planned will happen as we wish it to have a good start for the program.

• The YB Minister of KeTTHA agreed to launch the program and I knew, we need to impress all parties with the launch to give them more confident and also supports in the way forward that the SAVE Rebate program would be a success...

Next....I will share more on what exactly happened on the BIG day...