Effectiveness of Registered Electrical Energy Managers( REEMs) in Malaysia (Part 1)

Updated as at 28 September 2012,194 Registered Electrical Energy Manager with Energy Commmision are to ensure compliance to the existing EE law.

 

To start...just like any other law , the enforcement and monitoring by the regulator is also crucial to ensure the good impacts that could be resulted from EMEER 2008 compliance. 

EC at least need to have the in-house capacity and competent people in EE implementation who at least can guide the affected installations and REEMs for them to be able to look into the actual spirit behind EMEER 2008 rather than just for compliance. EC's roles in educating the installations in directly linked to REEMs that they have certified as their "representive" because if REEMs are not able to convince the installations about tge benefits from compliance with EMEER 2008, EC is left alone to do it. 

This is another one reason why REEMs are so crucial to ensure the success of EMEER2008 implementation. 

Now, let us examine their effectiveness to promote EE...at least at with installations that they appointed according to the requirements of EMEER 2008.

The Efficient Management of Electrical Energy Regulations was effective from 15 Dec 2008 and it affcects consumers and private licencess who consume or generate more than 3,000,000kWh in total in 6 consecutive months at any duration from the effective date.

Two key features in the regulations are: 
1. Affected consumers/private licensees must appoint Registered Electrical Energy Manager (REEM)with EC and... 

2. also required to submit energy management info and updates in a scheduled report to EC in every 6 months 

Key duties of REEM in efficient management of energy in general are:

1. To advise on how to implement 

2. To audit 

3. To monitor the implementation 

4. To supervise records and documents are kept 

5. To ensure timely submission of the scheduled report by the installation 

Currently there are about almost 1500 installations affected by the regulations and I am aware that EC has started to send warning notices to those who have not comply since 2011 

Please log on into EC's website www.st.gov.my for more info

Based on feedback by some affected installations and also REEMs in the market, we can classify REEMs in few categories now:

1. appointed as REEM at the installation where he/she is working now(I guess the most of REEMs) for compliance 

 

2. Appointed as the third party as REEM by affected installations they can be appointed by more than one installations. This group normally consultants. 

 

3. Not appointed any installation and just keep the certificate as one of their competency recognition 

Comparatively with other country that have similar competency certificate by EE laws such as Japan and India, to become REEM is much more easier due to a very "minimun" requirements in EMEER 2008 for academic qualifications, knowledge and experiences in EE. All that they need to have are at least  degree in engineering, architecture and science with experiences in energy management from 6 months to one years plus an interview session before they can be registered if they pass the interview.

 

 

The main concern is....how competent of REEMs in promoting and assisting to implement EE for the affected installations and for other intensive energy users as a whole.

Functions and duties of REEM in EMEER 2008 are very general and in can be intrepreted in many ways if not being well explained and guided by the regulator. The key of EMEER 2008 is to ensure energy resources(electrical) is managed efficiently and REEMs are expected to play the critical role for that to happen...

 

How many installation for REEM can be appointed? How much should REEM charge for each installation? How much should I for REEM services? Will REEM help to save energy? Is energy audit is compulsory and if yes, what type of energy audit that need to be carried out? detailed, investment grade or walk through? 

It ia very crucial for REEMs to be able understand their "real" functions & duties clearly and convincingly since provisions stated in EMEER 2008 are very brief and general...their ability to do that nornally will determine what type of REEM they would be that will lead to what type services to delivered to installations that agreed to appoint them. 

To me...the compliance of affected installations towards EMEER 2008 should only be the minimum requirement for REEM to fulfill which is to verify reports that need to be submitted to EC in every six months.Their further functions should derive from the regulation 16 in EMEER 2008 which is not fully understood the owner of the installation who are mostly new or unaware of it until they received the notification from EC. 

 

To my understanding, the spirit of EMEER 2008 is more to give the freedom to each installation to manage their energy efficiently.It can be seen with so many general provisions and minimum mandatory requirements that need to be complied.That actually give the flexibility to REEM to figure out the best or the most practical package to offer other than just for compliance... 

We will look into this topic furher since this will determine the tangible values and benefits in the appointment of REEM in the eye of the installation's owner with the amount of fee that they are willing to pay.

 

From the market information and communications with some of fellow REEMS ...there are REEMs being paid from about RM500 per month to RM50k+++ per year for services offered to affected installations with about 400 installations have appointed REEM.There are REEMs appointed to many installations and the highest number for one REEM that being told to me is about 20 installations. I am not going to question about the fees or how many installations for each REEM can be appointed, as a REEM myself, I would to discuss on how every REEM will or should position themselves in the market and how as REEMs, and then we would be able to promote efficient management of energy that will benefit the installation itself and the country as a whole. It's free market and everyone has absolute rights to find the best way to secure clients. 

There are few types of installations too when it comes to on how they look at EMEER 2008.Generally I would like to categorize them as follows: 

1. Just would like to comply to avoid issues with the authority,their certificaton requirements and etc.Management of energy it is no so critical to them especially for purely local companies. 

2.Ready to comply since energy management have been implemented for many years 

3.Want to comply but delayed their actions due to other important commitment and in the same time findings it hard to get REEMs due to insufficient supply and unsure about how much values REEM will bring with the costs that they need to fork out.They are also raised concerns on lack of reference/guidance/benchmark on the scope of works of REEM to deliver with proposed fees. 

4.With wait and see attitude...trying to delay it if possible 

5.Just do not care at all 

6. The management are not aware about it at all 

7. Keen to comply and immediately and taking necessary actions to indicate their on-going commitment as "green" or law abiding organizations 

There are may be more but what I am going to highlight here are...firstly, for different type of organizations, REEMs have to have different approache to sell themselves to get appointed with the suitable scope of works to fulfill each installation's requirement and their perception towards EMEER 2008.Secondly, how REEMs position themselves in the market will create the perception towards them among the affected installations as a whole and companies that appointed them, fellow REEMs and also from the regulator's point of view. 

 

I came across installations that we have EE projects with them that shared with us some of their experiences with REEMs that they have appointed.For companies that appointed REEMs from their qualified internal personnel, normally they do not have that many issues with their REEMs. Negative comments normally come from companies that appointed external REEMs that could not see or realize the benefits despite paying certain amount of fees on monthly basis other than complying to EMEER 2008.