Even as the Government took a significant step towards getting companies here - especially those that use large amounts of energy - to manage their energy consumption, some Members of Parliament (MPs) felt that the new laws do not go far enough to get companies to reduce their carbon footprint.
As the need to reduce national energy consumption vexes policymakers around the world, the Republic will introduce a new Energy Conservation Act, which will kick in next year.
Yesterday, the new legislation was passed in Parliament: Companies here which consume energy beyond a specified threshold are required to appoint an energy manager to monitor energy usage and greenhouse emissions. They also have to submit reports to the authorities and come up with plans - including targets and measures - to improve energy efficiency.
Speaking in Parliament, Minister for the Environment and Water Resources Vivian Balakrishnan reiterated the need for Singapore to minimise energy waste given that it imports all its energy needs to fuel the economy.
“We need to focus the minds of corporations and citizens on building and achieving breakthroughs in energy efficiency through more rigorous energy management practices. Otherwise, we will pursue an ultimately unsustainable growth path,” said Dr Balakrishnan.
Explaining the rationale behind the new legislation, he noted that the Government’s previous consultations have found that energy management varies substantially among companies here, with some doing it better than others.
But Nominated MP Ramasamy Dhinakaran also suggested more punitive measures such as carbon taxes, while Non-Constituency MP Lina Chiam criticised the new legislation as a “weak instrument” as it does not require companies to meet their energy efficiency targets.
Workers’ Party (WP) NCMPs Yee Jenn Jong and Gerald Giam called for tax incentives, with Mr Giam suggesting extending tax rebates to companies which achieve their energy efficiency improvement targets.
Calling for “disincentives” for companies which use energy inefficiently, Mr Giam also backed WP chairman Sylvia Lim’s earlier suggestion - which she brought up in Parliament in 2008 - to introduce tiered electricity tariffs “such that those which consume more electricity pay for additional units at a higher rate”.
Dr Balakrishnan said that taking up Mr Giam’s suggestions would not only cause a burden on companies, they could also lead to “regulatory games” where, for instance, big corporations create multiple subsidiaries that could qualify for lower tariffs.
Said Dr Balakrishnan: “By making these measures carefully and slowly, we are enhancing capability, building up knowledge and, more important, enhancing the competitiveness of our companies in Singapore.”
Noting that the new legislation is an initial step - the data collected could allow better and targeted measures to be designed later - Dr Balakrishnan added: “I think this is a better and safer way of promoting energy efficiency and conservation, not by saddling our companies with additional levies and taxes as what you all have proposed.”
Nevertheless, several MPs also felt that companies here might not be able to fulfil the new requirements on their own, given that they may lack expertise in energy management.
Marine Parade Group Representation Constituency (GRC) MP Fatimah Lateef asked if manpower training and assistance could be given to companies, while Nee Soon GRC MP Muhammad Faishal Ibrahim suggested having a dedicated body to help companies make the transition and build up the necessary manpower. Bukit Panjang MP Teo Ho Pin also suggested that external energy auditors could be appointed to help firms.
Existing measures to help companies are in place, Dr Balakrishnan noted. The Singapore Certified Energy Manager Programme, for instance, will support the training of 1,000 energy managers by next year. As of March, 107 companies have joined the Energy Efficiency National Partnership programme, which is a platform for the companies to share best practices.
Singapore National Employer Federation executive director Koh Juan Kiat told Today he believes the onus is on companies to put in place “smarter processes” to meet the requirements. “Otherwise, they will incur additional costs of compliance,” he said.
He added that both the Government and the companies should analyse the data collected “to look for trends and gaps in terms of energy consumption”.
