The Government is seeking public feedback on the draft of a new law which would get energy-hungry firms to be more efficient.
Reacting to the draft bill yesterday, many of the affected companies said they already have energy plans and personnel in place, while commentators welcomed the efforts to improve energy efficiency.
Under the proposed Energy Conservation Act, firms in the industrial and transport sectors that consume more than 15 gigawatt-hours (GWh) of energy a year – roughly equivalent to the energy consumed by 3,000 four-room HDB households – would have to appoint an energy manager.
They would also have to monitor and report energy use and greenhouse gas emissions, as well as submit energy efficiency improvement plans.
Failing to do so warrants a maximum fine of $10,000 on the first offence, $20,000 on the second, and $1,000 a day thereafter.
By comparison, those who break construction noise control laws under the Environmental Protection and Management Act face a first-offence fine not exceeding $10,000.
If passed next year, the Energy Conservation Act will come into force from 2013.
Firms that might be affected include petroleum refiners, real estate developers and land transport operators. It is estimated that the Act could affect some 200 such companies.
Current energy performance standards and labelling schemes for household products and cars governed by other legislation will also be consolidated into the Act.
These include labelling for air-conditioners, fridges and clothes dryers, minimum efficiency standards for fridges, and fuel economy labelling for passenger cars and light goods vehicles under the Environmental Protection and Management Act.
In its 2010 sustainability report, property developer City Developments said that it ‘already exceeds’ the requirements. It said the upcoming legislations have ‘no impact’ on its operations.
Its report said it has energy managers in place and has also been disclosing its energy and carbon emission data in its reports since 2008.
Likewise, land transport operator ComfortDelgro said it has pledged to protect the environment since 2007 by recycling waste and reducing vehicle emissions.
ComfortDelgro spokesman Tammy Tan said the firm was studying the details of the proposed Bill and welcomed efforts to improve energy use and formalise environmental conservation.
A spokesman for oil and gas company Shell said it hoped the requirements for the certified energy manager and energy performance reporting format would be ‘customised and aligned to each industry’.
Fellow petrochemical firm ExxonMobil said it would review the draft Act in greater detail over the consultation period. A spokesman said the firm was on track to achieve its goal of improving energy efficiency across its worldwide operations by at least 10 per cent between 2002 and 2012.
Experts praised the draft Act for compelling the economy to go greener.
Mr Edwin Khew, chairman of the Sustainable Energy Association of Singapore (SEAS), noted that the Act does not take effect until 2013, which gives the industry time to adjust.
But companies that use more than 15GWh of energy per year are usually large firms which can afford the adjustment, he said.
‘This should also help companies improve on their bottom line, especially if energy cost continues to go up,’ he said.
In the future, companies could also be taxed based on their carbon footprint, and they should prepare for this, he added.
National University of Singapore (NUS) transport researcher Lee Der Horng noted that the transport sector is rightly included, as it consumes about 19 per cent of energy here.
But during the transition to boost energy efficiency, he said, costs could ‘come up a bit’.
‘The operator should also take this as an opportunity to become more energy-efficient, and therefore more competitive.’
His NUS colleague, sustainability researcher Kua Harn-Wei, added that an energy conservation Act should be complemented by incentives or technical help for companies to go green.
Some such schemes already exist, like the Singapore Certified Energy Manager programme to train and certify energy managers.
But he said the two weeks given for public consultation might be too brief.
The text of the draft Bill does not specify which country’s laws it is based on, but the UK and India have similar legislations.
The draft Bill, posted online on Thursday evening, can be viewed on the Reach government site at http://bit.ly/rQlphP, where feedback can be given.
The feedback period closes on Dec 28.
