Saturday, December 8, 2012

Effectiveness of REEM in Malaysia (Part 3):Types of REEM



1. To become a REEM under EMEER 2008, you do not have to a technical specialist or specialized in other areas in EE.Then, appointment of REEM by any company for the purpose of compliance only will not gurantee any energy cost reduction yet. However, being a specialist in certain areas especially on how to identify and implement energy cost saving measures definitely will bring more values to companies appointed them as REEM at their facilities.

2. Now I would like to elaborate further on what type of REEM that anyone possibly could be. To be realistic too, monetary factor would be one of the key factor among others. 

3. Another key factor is what is the market(installations affected by EMEER 2008) expects from REEMs which very much depending on how they see the implementation of the law as I indicated in the previous post.

4. I am not trying to which one is right or wrong  but would like to bring the attention to achieve goals from the implementation of EMEER 2008 other than potentials business opportunities.

5. The above figure is how I anticipate the scope of services that could be offered and roles to be played by REEMs as further described as follows:



  • Compliance Services

6. To me, when monetary benefit is the ultimate goal by being REEM, promising to ensure the basic compliance requirements is met would match the need of companies which have the same interest. For these type of REEMs, their scope will only require them to be appointed by the company and sign the declaration form (Form B) in every six months. All EEM works generally will be up to the company with appointed REEM will provide minimal inputs. 

7. With the minimum works required, fees for this type of scope normally will be minimum too and extra scopes will require the company to be charged separately upon request by the company. There will be no fixed commitment such as of number of visits, type of reporting or details of service level agreement by the REEM. With  this approach, one REEM would be able to offer their service to many companies.

8. I do hear now  some companies that are now questioning the value REEMs appointed by them who are not really doing much to help them to save energy despite being paid a fixed fee every month.For some companies, they are all right with it since that is exactly their requirement, just to comply to EMEER 2008.

9. For this type of scope, generally REEMs are not required to be well-versed in overall concept of energy management and even in energy conservation measures too because they do not expect themselves to  deliver that although their client may(indirectly due to the minimum fee agreed).

  • Efficient Energy Management(EEM)Services  

10.This is an enhanced scopes of REEM with the key addition is about assisting the company to have a comprehensive energy management system(EnMS) implemented at agreed time frame.The energy management system will cover both management and technical solutions that finally will lead to reduction of energy consumption and costs.This may involve adoption of recognized energy management standards such as ISO50001 standard.

11. REEMs who are able to offer this EEM services have to be familiar on the key concepts of EnMS from the development, implementation and evaluation for  continual improvement.Bear in mind the goal is not about to lead or to get the company to be certified but to have a system in place within the company that would enable them to achieve their energy targets and then sustain it with or without REEM. The effective implementation EnMS is expected to enable the company to save energy costs at NO or LOW cost measures to start with before they can embark into bigger  financial investments on energy saving measures which will lead them  to have more significant savings.

12. REEMs are expected to be more involved with the company and for easier understanding of commitment required from both parties, REEMs are advisable to prepare and submit their energy management plan to develop and implement EnMS which to be mutually agee by both of them too.

13. Since there will more roles and time to be spend, we expect higher fees to be proposed and justified by REEM to their potential clients  and then to convince them to accept the proposed scopes.

14. Normally , if both parties agreed with the proposed plan and fees, REEMs have the biggest challenge to deliver to justify fees that being charged.This is because, the company will have some more inputs at the later stage after the appointment made from their contacts on scope that being offered by other REEMS for compliance alone.

15. The failure of REEMs to prove their value to their clients with have significant impact on the perception of affected company towards  other REEMs since with this type of scopes, REEMs are expected to be specialist sin EnMS or energy efficiency measures who will advise and guide the company in efficient management of energy.

  • EEM mentor
16.  Further  the services offered for the above two types of REEMs, EEM Mentor would have the  approach and strategy to deliver our REEM services to  cover the following:

  • REEM will identify competency requirements and develop in-house competencies through  training programs  on EnMS and EE related topics;and
  • REEM will be a mentor to for in-house candidates  who will  apply to be a REEM with Energy Commission  and will assume the functions and duties as REEM after  the appointed external REEM services contract ended
The external REEM may play advisory roles or for specialized services upon request by the company on need basis.

Generally, this type of REEMs would only willing to be appointed at certain numbers of companies only at one particular duration which will make them eligible to offer their services at 3-4 companies at one time.This is due to the need for them to give due attention to each company which require constant assistance and guidance before REEM's tasks could be finally handed over to the in-house REEM towards the end of their contract


At this stage, it is hard to gauge what type REEMs are currently the majority in the market since the actual scope of services is only known between REEMs and their respective clients. As someone who currently holds that REEM registration and to those who have intention to get one, it is entirely up to you to decide what type of REEM are you or you will be.

Me??? I am offering either EEM or EEM mentor services only.

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