The Energy Regulation and Markets Review - Stikeman Elliott

Malaysia
II
REGULATION
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The regulators
Malaysia
The Energy Commission or is a statutory body established under the Energy Commission
Act 2001 (Act 610) to regulate the activities of energy supply in Malaysia and to enforce
energy supply laws. It regulates activities relating to supply and use of electricity including
the generation, transmission and distribution of electricity supply and also those relating
to the supply and use of gas including the delivery, transportation, distribution and
reticulation of gas supply. The Energy Commission, however, does not regulate activities
pertaining to petroleum development activities, which include upstream gas exploration
and mining, which are governed by other laws including the Petroleum Mining Act 1966
(Act 95).
The relevant laws under its jurisdiction comprise of laws not only relating to
electricity supply law as enumerated below, but also the following:
a the Gas Supply Act 1993 (Amendment) 2001;
b the Gas Supply Regulations 1997 (Amendment) 2000; and
c the Gas Supply (Compoundable Offences) Order 2006.
The Energy Commission comprises 11 members and is currently headed by Tan Sri
Datuk Dr Ahmad Tajuddin Ali, who was previously the chief executive officer of TNB.
Although the Energy Commission Act 2001 expressly covers the whole of
Malaysia, by virtue of the Suspension of the Operation of the Act (Sarawak) Order 2001,
the operation of the Energy Commission Act is suspended for the state of Sarawak.
Sarawak
The regulator for the supply of electricity in Sarawak is the Director of the Electricity
Supply. This position was created pursuant to the provisions of the Sarawak Electricity
Ordinance (Chapter 50 – Revised 2002). The Director of Electricity Supply heads the
Electrical Inspectorate Unit (‘the EIU’) under the Ministry of Public Utilities in Sarawak.
The functions of the EIU are to:
a advise the Sarawak government on the policy and direction with regard to the
planning and development for an adequate, reliable, efficient, affordable and safe
power system in the state;
b monitor the technical performance of the industry in general and licensees in
particular to ensure technical compliances and public safety; and
c provide an environment that encourages continued investment in the sector,
efficiency improvement and to protect consumer interests.
The Electrical Inspectorate Unit is also responsible for the following matters:
a licensing of electricity generation and supply;
b registration of electrical installations;
c registration of electrical contractors;
d issuance of certificate of competence for competent persons;
e establishment of technical and safety standards, monitoring performance and
enforcing compliance;
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