The Energy Regulation and Markets Review - Stikeman Elliott

Malaysia
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safety of electrical equipment and appliances;
accidents notification and investigations; and
technical and economic regulation of the planning, development and operation
of the power grid system.
ii Regulated activities
Malaysia
The relevant laws relating to the supply of electricity in Malaysia are as follows:
a Electricity Supply Act 1990 (Amendment) 2001;
b Licensee Supply Regulations 1990 (Amendment) 2002;
c Electricity Regulations 1994 (Amendment) 2003;
d Electricity Supply (Compounding of Offences) Regulations 2001; and
e Efficient Management of Electrical Energy Regulations 2008.
The primary source of law is the Electricity Supply Act 1990 (Act 447) (‘the ESA’). It
provides regulation for the supply of electricity, licensing of any electrical installation,
the control of any electrical installation, plant and equipment, the safety of persons using
such installation and the efficient use of electricity. This is provided in the preamble to
the ESA.
Under the ESA, no person can use or operate any electrical installation or supply
energy from such installation to any person without obtaining the required licence from
the Commission. In essence, any company seeking to either undertake the generation,
transmission or distribution of electricity would thus have to obtain a licence from the
Energy Commission.
Another important aspect of the ESA is the control of the tariff chargeable by
licensees. Under the ESA, any levy or tariff imposed must obtain the prior written
approval in writing by the Minister and so requires the decision of the Cabinet. In
addition, the ESA also sets out the provisions on the requirement of competent persons
to operate electrical installations and stipulates the duties and obligations incumbent on
licensees.
Sarawak
The legal framework for the supply of electricity industry in Sarawak comprises the
following laws:
a the Electricity Ordinance (Chapter 50 – Revised 2002);
b the Electricity (Amendment) Ordinance 2003 (Chapter A109);
c the Electricity Rules1999; and
d the Electricity (State Grid Code) Rules 2003.
The primary source of law in Sarawak for electricity supply is the Electricity Ordinance
as amended by the Electricity (Amendment) Ordinance 2003.
The Energy Ordinance prohibits any person from using and operating any
electricity installation, the supply, distribution and transmission of energy from such an
installation and the establishment of any installation or power generating plant without
obtaining a licence from the Sarawak state government represented by the head of state,
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