Energy Efficiency & Conservation Act
Republic Act No. 11285, or the Energy Efficiency and Conservation Act, and its implementing guidelines institutionalize 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.
Who are required to comply with the EE&C Act?
Under the EE&C Act, the Designated Establishments (DEs) classified under Types 1 to 3 are required to comply. DEs are energy-intensive entities or heavy consumers of electricity and fuel based on their annual energy consumption in the previous year or an equivalent annual index. These include industries such as food processing, cement manufacturing, chemical production, basic metals, and machinery.
DEs within the Commercial, Industrial, and Transport sectors are classified into four types based on their aggregate electricity and fuel consumption, expressed in kilowatt-hour equivalents (kWhe), as follows:
- Type 3 DEs: Establishments with an annual energy consumption of 4,000,001 kWhe or higher for the Commercial and Transport sectors, and 8,000,001 kWhe or higher for the Industrial sector.
- Type 2 DEs: Establishments consuming between 500,001 and 4,000,000 kWhe in the Commercial and Transport sectors, and between 1,000,001 and 8,000,000 kWhe in the Industrial sector.
- Type 1 DEs: Establishments consuming between 50,001 and 500,000 kWhe in the Commercial and Transport sectors, and between 50,001 and 1,000,000 kWhe in the Industrial sector.
- Other DEs: Establishments across all sectors with an annual energy consumption of 50,000 kWhe and below.
They are only encouraged to comply with RA No. 11285
| Annual Energy Consumption (Previous Year) | ||
DE Typology | Commercial | Transport | Industrial |
Other DEs | 50,000 kWhe and below | ||
Type 1 | 50,001 kWhe to 500,000 kWhe | 50,001 kWhe to 1,000,000 kWhe | |
Type 2 | 500,001 kWhe to 4,000,000 kWhe | 1,000,001 kWhe to 8,000,000 kWhe | |
Type 3 | 4,000,001 kWhe or more | 8,000,001 kWhe or more | |
*kWh equivalent (kWhe) refers to the aggregate total of both electricity and fuel (petroleum products) consumption.
What are the obligations of a DE?
Integrate an Energy Management System (EnMS) into your 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).
Types 1 to 3 DEs are required to appoint a Certified Energy Manager (CEM) who is well-versed in energy management and may be chosen from within the organization or hired through external recruitment. This lead CEM may be assisted by a Certified Energy Conservation Officer (CECO) for Type 1 and Type 2 DEs, or by an additional CEM for Type 3 DEs. Establishments classified as 'Other DEs' are not required to employ a CEM or a CECO for their facilities.
Both CEM and CECO 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 Energy auditor (CEA) or accredited Energy Service Company (ESCO). Once complete, the report must be submitted to the Department of Energy. This is mandatory for Types 1 to 3 DEs while only voluntary for ‘Other DE’.
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.