Energy Efficiency & Conservation Act
Republic Act No. 11285 or the Energy Efficiency & Conservation Act (EE&C) institutionalizes energy efficiency and conservation, enhancing the efficient use of energy, and granting incentives to energy efficiency and conservation projects.
The law’s main objectives are clear: to safeguard a sufficient, stable energy supply; cushion the impact of high imported-fuel prices; and protect the environment in support of Philippine economic and social development goals.
Under the EE&C Act, Designated Establishments (DEs), which are private entities identified as energy intensive industries or those that heavily consume electricity and fuels (e.g food processing, cement manufacturing, chemicals, basic metal and machinery and equipment), are required to comply.
They are classified into 3 types based on their annual energy consumption, a combination of both fuel and electricity, and expressed in kilowatt-hour equivalent (kWhE)*. A DE can have an annual energy consumption of at least 100,000 kilowatt-hour equivalent (kWhe) or more.
|Designated Establishment Type
|Previous Year’s Energy Consumption
|500,000 – 4,000,000 kWhE
|100,000 – 500,000 kWhE
*kWhE is a measure of energy that signifies conversion to an electrical energy equivalent (e.g. converting gas to electric or converting diesel to electric).
- Integrate an Energy Management System (EnMS) into your operations.
DEs are mandated to integrate an Energy Management System (EnMS) into their operations. An EnMS is a systematic approach to the management of energy use. It applies good management practices that combine behavioral change among employees, technical improvement, low cost operation and maintenance of existing equipment and objective use of data to show business performance. Once integrated, businesses are also encouraged to acquire an EnMS certification.
- Engage an Energy Conservation Officer (ECO) or an Energy Manager (EM).
Type 1 DEs must employ an ECO who is well-versed in energy management. While Type 2 DEs must employ an EM who is a licensed engineer, or its equivalent, who is highly competent in energy management. Both positions will manage the following:
- Energy consumption of facilities, equipment, and devices of the business
- Administer the implementation and improvement of energy efficiency measures
- Conduct regular energy audit
- Conduct energy monitoring and control
- Prepare periodic energy consumption and energy conservation program reports
The identified personnel will have to undergo certification, upon the availability of the DOE training modules, which then promotes them to becoming either a Certified Energy Conservation Officer (CECO) or Certified Energy Manager (CEM).
Be sure to notify the DOE if ever there are changes in the appointment of your ECO or EM.
- Undergo an Energy Audit once every 3 years.
An energy audit helps companies determine their energy use patterns and identify energy efficiency opportunities that will yield savings once implemented. The audit should be performed by a certified auditor or accredited Energy Service Company (ESCO). Once complete, the report must be submitted to the Department of Energy. This is mandatory for both Type 1 & 2 DEs while only voluntary for ‘Others’.
- Submit all the necessary reports.
These are some of the reports and documents you will need to prepare as a DE:
- EEC Form 1 (Type 1 DEs) or EEC Form 2 (Type 2 DEs): Register your Energy Conservation Officer or Energy Manager
- EEC Form 3: Annual Energy Efficiency & Conservation Report
- EEC Form 4: Annual Energy Utilization Report
- Implement Energy Efficiency & Renewable Energy projects.
There are many projects you can implement within your operations to begin conserving more energy. Some great examples include:
- Reduction of Building Cooling Demand
- Adopting Energy Efficient Appliances
- Retrofitting Lighting Systems with light sensors
For more in-depth information about the Energy Efficiency & Conservation Act, you can watch the recording of the Meralco Power Up Live webinar or read through the primer provided by the Department of Energy.