ENERGY COMMISSION

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ENERGY COMMISSION

• SURUHANJAYA TENAGA
• TINGKAT 13, MENARA TH PERDANA
• 1001, JALAN SULTAN ISMAIL
• KUALA LUMPUR.

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BACKGROUND
THE ROLE OF REGULATOR IN ENERGY SUPPLY INDUSTRY
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ROLE OF THE REGULATOR
BACKGROUND

• PROTECTING CONSUMERS FROM POSSIBLE MONOPOLY
  ABUSE, WHETHER THROUGH EXCESSIVE PRICES OR POOR
  OR UNSAFE SERVICE
• PROTECTING SERVICE PROVIDERS FROM POSSIBLE
  ARBITRARY INTERFERENCE THAT WILL UNDERMINE
  INCENTIVES FOR INVESTMENT
• PROMOTING OTHER SOCIAL INTERESTS, INCLUDING
  ENVIRONMENTAL PROTECTION
• PROMOTING ECONOMIC EFFICIENCY

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BACKGROUND
THE ENERGY COMMISSION ACT, 2001 (ACT 610)

• THE ENERGY COMMISSION (ST) WAS ESTABLISHED IN
  2001 UNDER THE ENERGY COMMISSION ACT 2001
• THE ACT PROVIDED ST WITH POWERS TO REGULATE THE
  ENERGY SUPPLY ACTIVITES IN MALAYSIA
• SECTION 33(3) REQUIRED ST TO SEND A COPY OF THE
  STATEMENT OF ACCOUNTS, CERTIFIED BY THE AUDITORS,
  TOGETHER WITH A REPORT ON THE ACITIVIES OF THE
  COMMISSION FOR THE PRECEDING FINANCUAL YEAR, TO
  THE MINISTER OF ENERGY WHO SHALL LAID THEM BEFORE
  BOTH HOUSES OF PARLIAMENT.

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BACKGROUND
ENERGY SUPPLY LAWS

• TO ENFORCE THE ENERGY SUPPLY LAWS, AND FOR
  MATTERS CONNECTED THEREWITH
• ST IS FULLY OPERATED ON 2ND JANUARY 2002

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ENERGY SUPPLY LAWS

• Akta Bekalan Elektrik 1990
• Peraturan-Peraturan Elektrik 1994

• Akta Bekalan Gas 1993
• Peraturan-Peraturan Bekalan Gas 1997

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THE ENERGY COMMISSION (ST)

• The Energy Commission Act 2001 (Act 610)
  established The Energy Commission in May 2001 as
  a regulatory body for energy supply activities.
• Its functions include
• Advising the Minister on energy supply matters,
• Reviewing and administration of energy supply
  laws,
• Promotion of the development of the electricity
  and piped gas industry, and
• Promotion of the energy sector sustainability.
• Administration of the Gas Supply Act 1993 and
  Electricity Supply Act 1990 commenced on 2nd
  January 2002.

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MEMBERSHIP OF THE ENERGY COMMISSION (ST)

• THE ACT PROVIDES FOR
• A CHAIRMAN
• 2 MEMBERS REPRESENTING THE GOVERNMENT
• NOT LESS THAN TWO BUT NOT MORE THAN FOUR OTHER
  MEMBERS
• CURRENTLY THERE ARE 7 COMMISSION MEMBERS
• (INCLUDING CHAIRMAN)

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Regulatory Framework
of the Piped Gas
Supply Industry
Prime Minister / Cabinet
Ministry of Energy, Water and Communications
Economic Planning Unit, Prime Ministers
Department

• Coordinates Implementation of Policies

• Formulate Policies Strategies
• Oversee the Industry
• Approve Tariffs and Supply Licences

• Energy Commission
• Advise on all matters relating to gas
  reticulation industry
• Develop legal frameworks
• Issue licenses and approvals
• Regulate industry on safety, reliability, quality
  and economic aspects

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SCOPE OF THE PRESENTATION
VISION, MISSION, OBJECTIVES
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VISION

• CONSUMERS INTERESTS ARE PROTECTED
• THE MARKET IS EFFICIENT AND COMPETITIVE IN AN
  EFFECTIVE AND TRANSPARENT REGULATORY ENVIRONMENT
• ST AS A PROGRESSIVE ORGANIZATION THAT PROMOTES A
  CULTURE OF KNOWLEDGE ENHANCEMENT, PRODUCTIVITY
  AND EXCELLENCE

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MISSION

• TO CREATE AND ENFORCE A REGULATORY FRAMEWORK FOR
  THE ACHIEVEMENT OF A RELIABLE, EFFICIENT AND SAFE
  ENERGY SUPPLY INDUSTRY CONSISTENT WITH THE NEEDS
  FOR ECONOMIC GROWTH AND SUSTAINABLE DEVELOPMENT

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OBJECTIVES

• PROVIDE TIMELY AND RELEVANT ADVICE ON POLICIES
  AND STRATEGIES FOR THE ENERGY INDUSTRY
• PROVIDE AN EFFECTIVE REGULATORY FRAMEWORK TOWARDS
  SELF-REGULATION IN THE ENERGY SECTOR
• ENSURE EFFICIENT AND SAFE SUPPLY AND UTILIZATION
  OF ENERGY
• ENSURE TRANSPARENT AND COMPETITIVE ENERGY MARKET
• PROTECT CONSUMERS INTERESTS
• PROMOTE THE USE OF RENEWABLE ENERGY AND THE
  CONSERVATION OF NON-RENEWABLE ENERGY
• PROMOTE RESEARCH AND DEVELOPMENT (R D) AND THE
  USE OF NEW TECHNOLOGY IN THE ENERGY INDUSTRY.

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SCOPE OF THE PRESENTATION
FUNCTIONS
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FUNCTIONS

• IN ADDITION TO THE FUNCTIONS PRESCRIBED UNDER
  THE ELECTRICITY SUPPLY ACT AND THE GAS SUPPLY
  ACT, THE COMMISSION ADDITIONAL FUNCTIONS ARE-
• TO ADVISE THE MINISTER ON ALL MATTERS CONCERNING
  THE NATIONAL POLICY OBJECTIVES FOR ENERGY SUPPLY
  ACTIVITIES
• TO ADVISE THE MINISTER ON ALL MATTERS RELATING TO
  THE GENERATION, PRODUCTION, TRANSMISSION,
  DISTRIBUTION, SUPPLY AND USE OF ELECTRICITY AS
  PROVIDED UNDER THE ELECTRICITY SUPPLY LAWS
• TO ADVISE THE MINISTER ON ALL MATTERS RELATING TO
  THE SUPPLY OF GAS THROUGH PIPELINES AND THE USE
  OF GAS AS PROVIDED UNDER THE GAS SUPPLY LAWS
• TO IMPLEMENT AND ENFORCE THE ENERGY SUPPLY LAWS
  TO PROMOTE AND SAFEGUARD COMPETITION AND FAIR AND
  EFFICIENT MARKET CONDUCT OR, IN THE ABSENCE OF A
  COMPETITIVE MARKET,

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FUNCTIONS

• TO PREVENT THE MISUSE OF MONOPOLY OR MARKET POWER
  IN RESPECT OF THE GENERATION, PRODUCTION,
  TRANSMISSION, DISTRIBUTION AND SUPPLY OF
  ELECTRICITY AND THE SUPPLY OF GAS THROUGH
  PIPELINES
• TO PROMOTE THE USE OF RENEWABLE ENERGY AND THE
  CONSERVATION OF NON-RENEWABLE ENERGY
• TO REGULATE ALL MATTERS RELATING TO THE
  ELECTRICITY SUPPLY INDUSTRY AND TO PROTECT ANY
  PERSON FROM DANGERS ARISING FROM THE GENERATION,
  PRODUCTION, TRANSMISSION, DISTRIBUTION, SUPPLY
  AND USE OF ELECTRICITY AS PROVIDED UNDER THE
  ELECTRICITY SUPPLY LAWS

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FUNCTIONS

• TO REGULATE ALL MATTERS RELATING TO THE SUPPLY OF
  GAS THROUGH PIPELINES AND TO PROTECT ANY PERSON
  FROM DANGERS ARISING FROM THE SUPPLY OF GAS
  THROUGH PIPELINES AND THE USE OF GAS AS PROVIDED
  UNDER THE GAS SUPPLY LAWS
• TO PROMOTE EFFICIENCY, ECONOMY AND SAFETY IN THE
  GENERATION, PRODUCTION, TRANSMISSION,
  DISTRIBUTION, SUPPLY AND USE OF ELECTRICITY AND
  IN THE SUPPLY OF GAS THROUGH PIPELINES AND THE
  USE OF GAS SUPPLIED THROUGH PIPELINES
• TO PROMOTE RESEARCH INTO, AND THE DEVELOPMENT AND
  THE USE OF, NEW TECHNIQUES RELATING- 
• THE GENERATION, PRODUCTION, TRANSMISSION,
  DISTRIBUTION, SUPPLY AND USE OF ELECTRICITY AND
• THE SUPPLY OF GAS THROUGH PIPELINES AND THE USE
  OF GAS SUPPLIED THROUGH PIPELINES

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FUNCTIONS

• TO ENCOURAGE AND PROMOTE THE DEVELOPMENT OF THE
  ELECTRICITY SUPPLY INDUSTRY AND THE SUPPLY OF GAS
  THROUGH PIPELINES INCLUDING IN THE AREA OF
  TRAINING
• TO ENCOURAGE AND PROMOTE SELF-REGULATION IN THE
  ELECTRICITY SUPPLY INDUSTRY AND THE SUPPLY OF GAS
  THROUGH PIPELINES
• TO CARRY OUT ANY FUNCTION CONFERRED BY OR UNDER
  THE ENERGY SUPPLY LAWS
• TO REVIEW THE ENERGY SUPPLY LAWS AND TO MAKE THE
  NECESSARY RECOMMENDATIONS TO THE MINISTER AND
• TO CARRY OUT ALL SUCH ACTIVITIES AS MAY APPEAR TO
  THE COMMISSION REQUISITE, ADVANTAGEOUS OR
  CONVENIENT FOR THE PURPOSE OF CARRYING OUT OR IN
  CONNECTION WITH THE PERFORMANCE OF ITS FUNCTIONS
  UNDER THE ENERGY SUPPLY LAWS

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SCOPE OF THE PRESENTATION
ORGANIZATION STRUCTURE
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THE ENERGY COMMISSION

• A CHAIRMAN
• 2 MEMBERS REPRESENTING THE GOVERNMENT
• NOT LESS THAN TWO BUT NOT MORE THAN FOUR OTHER
  MEMBERS
• CURRENTLY THERE ARE 7 MEMBERS OF THE COMMISSION

A MEMBER OF THE COMMISSION SHALL HOLD OFFICE FOR
A TERM NOT EXCEEDING 3 YEARS
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CHIEF EXECUTIVE OFFICER

• THE CHAIRMAN SHALL ALSO BE THE CHIEF EXECUTIVE
  OFFICER (CEO) OF THE COMMISSION

THE COMMISSION SHALL VEST IN THE CEO SUCH POWER
AND IMPOSE UPON HIM SUCH DUTIES AS MAY BE
DETERMINED BY THE COMMISSION
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CHIEF EXECUTIVE OFFICER

• THE CEO SHALL
• BE RESPONSIBLE FOR THE OVERALL ADMINISTRATION AND
  MANAGEMENT OF THE FUNCTION AND DAY TO DAY
  AFFAIRS OF THE COMMISSION SECTION 18 (3)
• HAVE GENERAL CONTROL OF THE OTHER OFFICERS OF THE
  COMMISSION SECTION 18 (4)
• PERFORM SUCH FURTHER DUTIES AS THE MINISTER AND
  THE COMMISSION MAY DIRECT FROM TIME TO
  TIMESECTION 18 (5)
• IN DISCHARGING HIS DUTIES, THE CEO SHALL ACT
  UNDER THE GENERAL AUTHORITY AND DIRECTIONS OF THE
  COMMISSION SECTION 18 (6)

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THE ORGANIZATIONAL STRUCTURE

• 3 MAIN DIVISIONS
• SUPPLY AND SAFETY
• CORPORATE MANAGEMENT
• INDUSTRY DEVELOPMENT

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THE SUPPLY AND SAFETY DIVISION

• MAIN FUNCTIONS
• APPROVING ELECTRICAL AND PIPED GAS INSTALLATIONS
• APPROVING ELECTRICAL AND GAS APPLIANCES.
• EXAMINATION AND CERTIFICATION OF COMPETENT
  PERSONS AND CONTRACTORS FOR THE ELECTRICITY AND
  GAS SUPPLY INDUSTRIES.
• PROMOTION AND EDUCATION ON THE SAFETY AND
  EFFICIENT USE OF ENERGY.
• PRESCRIBING CODES, PRACTICES AND STANDARDS FOR
  THE ELECTRICITY SUPPLY AND PIPED GAS SUPPLY
  INDUSTRIES.

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THE CORPORATE MANAGEMENT DIVISION
THE CORPORATE MANAGEMENT DIVISIONS IS RESPONSIBLE
FOR FUNCTIONS RELATED TO THE

• GENERAL ADMINISTRATION
• HUMAN RESOURCE MANAGEMENT
• FINANCE
• INFORMATION TECHNOLOGY AND MANAGEMENT
• CORPORATE COMMUNICATION

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THE INDUSTRY DEVELOPMENT DIVISION

• THE DIVISION IS RESPONSIBLE FOR
• UNDERTAKING RESEARCH AND DEVELOPMENT AS WELL AS
  RECOMMENDING
• STRATEGIES FOR INFRASTRUCTURE DEVELOPMENT
• POLICIES AND STRATEGIES FOR THE DEVELOPMENT OF
  THE ENERGY MARKET INCLUDING ISSUES RELATED TO THE
  ENVIRONMENT
• REVIEWING AND RECOMMENDING NEW TARIFF STRUCTURES
• COORDINATING THE PREPARATION OF THE ENERGY
  COMMISSIONS CORPORATE PLAN AND ANNUAL REPORT
• MONITORING NEW DEVELOPMENTS IN THE INTERNATIONAL
  ENERGY MARKET AND ITS IMPLICATIONS ON THE
  MALAYSIAN ENERGY MARKET, IN PARTICULAR, AND THE
  ECONOMY IN GENERAL

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THE REGIONAL OFFICES

• MAIN FUNCTION
• THE REGIONAL OFFICES REPRESENT THE ENERGY
  COMMISSION IN THE RESPECTIVE REGIONS. THEY
  UNDERTAKE ALL ACTIVITIES RELATED TO ELECTRICAL
  SAFETY AND SUPPLY NAMELY REGISTRATION, LICENSING,
  INVESTIGATION, ENFORCEMENT AND COMPETENCY
  EXAMINATIONS AT STATE AND REGIONAL LEVELS

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SCOPE OF THE PRESENTATION
ISSUES AND CHALLENGES
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ISSUES AND CHALLENGES

• TO PROMOTE AN EFFICIENT AND COMPETITIVE ENERGY
  SUPPLY INDUSTRY
• TO ENSURE ADEQUATE AND RELIABLE ENERGY SUPPLY,
• TO ENSURE SECURITY OF SUPPLY
• TO PROMOTE RENEWABLE ENERGY
• TO PROMOTE ENERGY EFFICIENCY AND POWER SAVINGS

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THANK YOU
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