Challenges on globalization and liberalization in particular, have brought about major changes in the Energy Supply industry. In the traditional regulation approach, the government entity has a direct role in the investment of electricity supply infrastructure.  This approach has become less relevant in the electricity industry today, which has progressed towards market environment.  Since 1992, 26 Independent Power Producers (IPPs) in Malaysia, have generated approximately half of the total electricity supply of the country while the main government-owned utility company has produce the other half.

THE ENERGY COMMISSION

The Energy Commission of Malaysia (The Commission) was created on 1st May 2001 under the Energy Commission Act (2001) as a new regulator for the energy industry in Malaysia. The Commission was established to ensure that the energy industry is developed in an efficient manner so that Malaysia is ready to meet the new challenges of globalization and liberalization, particularly in the Energy Supply industry.

The Commission is empowered to regulate and promote all matters relating to the electricity and gas supply industry within the scope of applicable legislation namely Electricity Supply Act 1990, Gas Supply Acts 1993, Electricity Regulations 1994, and Gas Supply Regulation 1997.

In performing its role, the Commission is to encourage and promote the development of the electricity supply industry and the gas supply industry and self-regulation.

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