The MOEA Previews Amendments to the Energy Administration Act to Enhance Legal Framework for Energy Conservation and Promote Deep Energy Saving

In response to the current phase of strengthening energy demand management to improve energy efficiency, the Taiwan Ministry of Economic Affairs has drafted amendments to the Energy Administration Act and officially announced it on July 30, 2024.

With the global trend towards net-zero carbon emissions, Taiwan presented "The Pathway to Net-Zero Emissions in 2050" and "12 Key Strategies" in 2022. During COP28, over 120 countries jointly advocated for the "Global Pledge on Renewables and Energy Efficiency," proposing to increase the annual energy efficiency improvement rate from 2% to 4% by 2030. Energy conservation has become a key measure to achieve net-zero; thus, this amendment focuses on strengthening energy demand management and improving energy efficiency.

The key amendments are as follows:

1. Introducing a requirement for energy supply enterprises to publicly disclose energy sales statistics, with the types, scope, period, method, and timing of disclosure authorized by the central competent authority's announcement. (Amended Article 6-1).
2. Local governments should be included in the execution of energy user audits related to this Act. (Amended Article 19-1)
3. Introducing provisions for the competent authority to publish the names of companies and operators that violate this Act, adding new types of violations, and increasing fines for certain penalties. (Amended Articles 20, 20-1, 21, 22, and 24)

Taiwan has successively established various specific energy laws that consider liberalizing the domestic energy market. Therefore, this amendment also reviews the appropriateness of the structure and content of this Act to distinguish the positioning of the Energy Administration Act from other specific energy laws. The amendment aims to complete the authorization and management matters for energy designated as energy products that are not regulated by specific laws.

The key amendments are as follows:

1. Adding renewable energy and thermal energy as types of energy referred to in this Act and stipulating that if other energy laws have specific provisions on energy management matters regulated by this Act, those provisions shall prevail. (Amended Article 2)
2. Revising the scope of authorization for the management of designated energy products and adding a basis for the central competent authority to delegate part of the management tasks to local governments. (Amended Article 6)

Note:
The general description and comparison table of the amendments to the Energy Administration Act have been published on the Bureau of Energy, Ministry of Economic Affairs' global information website (https://www.moeaea.gov.tw) on July 30, 2024. If any parties have opinions or suggestions for revisions to this draft, please provide them within 60 days from the date of publication.