Statute Details
- Title: Energy Conservation (Exemptions — Sections 23A and 26B) Order 2020
- Act Code: ECA2012-S973-2020
- Legislation Type: Subsidiary Legislation (SL)
- Authorising Act: Energy Conservation Act (Chapter 92C)
- Enacting Power: Section 77 of the Energy Conservation Act
- Commencement: 1 December 2020
- Primary Provisions (as extracted): Section 1 (Citation and commencement); Section 2 (Exemptions)
- Current Version Status: Current version as at 27 March 2026
- Key Amendment Noted in Extract: Amended by S 720/2025 with effect from 1 December 2025
- Singapore Legislation No. (as shown): S 973/2020
What Is This Legislation About?
The Energy Conservation (Exemptions — Sections 23A and 26B) Order 2020 is a targeted regulatory instrument made under the Energy Conservation Act (the “Act”). In plain terms, it creates specific exemptions from certain energy conservation obligations that would otherwise apply to “registrable relevant persons” in relation to “prescribed systems” used for business activities.
The Order does not repeal the Energy Conservation Act. Instead, it carves out defined situations where the statutory requirements in the Act—particularly those found in sections 23A and 26B—do not apply. The exemptions are designed to reflect practical differences in how energy management obligations should apply across industries and premises configurations.
As updated by S 720/2025 (effective 1 December 2025), the exemptions are more nuanced than a simple “one-size-fits-all” carve-out. They distinguish between (i) premises wholly occupied by a single person for non-exempt industry activities, (ii) premises where a prescribed system is used for the supply of chilled water for air-conditioning, and (iii) cases where only part of a prescribed system is located on premises under the operational control of the registrable relevant person—excluding certain components (notably water-cooled chillers).
What Are the Key Provisions?
1. Citation and commencement (Section 1)
Section 1 provides the formal citation and states that the Order comes into operation on 1 December 2020. This matters for compliance timelines: obligations under the Act that are exempted by this Order only become inapplicable from the commencement date (subject to any later amendments).
2. Exemptions from section 23A(1) of the Act (Section 2(1)–(2A))
The core of the Order is Section 2, which exempts certain persons from the operation of section 23A(1) of the Act. Section 23A(1) is not reproduced in the extract, but the exemption mechanism is clear: if the conditions in the Order are met, the statutory requirement in section 23A(1) does not apply.
Section 2(1): Single-occupant premises for non-covered industry sectors
Under Section 2(1), section 23A(1) does not apply to a registrable relevant person who has operational control over premises (or part of premises) that are wholly occupied (or to be occupied) by only one person for carrying out a business activity that is not attributable to any of the industry sectors mentioned in regulation 7G(b) of the Energy Conservation (Energy Management Practices) Regulations 2013.
Practically, this exemption is aimed at reducing regulatory burden where the premises are effectively “single-tenant” and the business activity falls outside particular industry categories identified in the 2013 Regulations. For practitioners, the key factual/legal work is to determine (i) who has operational control, (ii) whether the premises are wholly occupied by only one person, and (iii) whether the business activity is attributable to the specified industry sectors.
Section 2(2): Prescribed system premises used for chilled water supply (with exclusions)
Section 2(2) provides an additional exemption from section 23A(1) where the registrable relevant person has operational control over premises in which a prescribed system is situated, but only if the premises (or part) are:
- wholly occupied by only one person (disregarding any person contracted to operate or maintain the prescribed system); and
- used for a business activity attributable to the supply of chilled water for air-conditioning, unless the chilled water is supplied to certain excluded categories.
The “unless” clause is critical. The exemption does not apply if the chilled water is supplied to:
- (i) premises used for business activities attributable to any of the following industry sectors:
- (A) manufacturing and manufacturing-related services;
- (B) supply of electricity, gas, steam and compressed air;
- (C) water supply and sewage and waste management;
- (ii) multiple buildings owned or occupied by different persons (excluding the registrable relevant person).
From a compliance perspective, this is a conditional exemption tied to downstream usage of chilled water. Lawyers advising registrable relevant persons should therefore consider contractual arrangements and operational realities: who receives the chilled water, what business activities occur at the receiving premises, and whether the supply is across multiple buildings with different owners/occupiers.
Section 2(2A): Partial prescribed system exemption; exclusion of water-cooled chillers
Section 2(2A) introduces a further refinement: section 23A(1) does not apply to a registrable relevant person if:
- (a) only a part of the prescribed system is in premises under the operational control of the registrable relevant person; and
- (b) the part of the prescribed system in those premises does not include any of the water-cooled chillers of the prescribed system.
This provision is particularly important for complex installations where a prescribed system spans multiple locations. It creates an exemption based on the composition of the portion located on the registrable relevant person’s premises. Practically, this requires technical mapping of system components and careful interpretation of what constitutes “water-cooled chillers” within the prescribed system.
3. Exemptions from section 26B(2) and (3) of the Act (Section 2(3))
Section 2(3) provides that section 26B(2) and (3) of the Act does not apply to any prescribed system in premises that are wholly occupied (or to be occupied) by only one person for carrying out a business activity that is not attributable to the industry sectors mentioned in regulation 7G(b) of the 2013 Regulations.
This is a parallel exemption to the section 23A(1) exemptions, but it is framed differently: it focuses on the prescribed system itself rather than the registrable relevant person’s operational control. For practitioners, this distinction matters when advising on whether the exemption is available even if operational control facts are complex, but the premises and business activity attribution meet the conditions.
4. Definitions and cross-references (Section 2(4))
Section 2(4) clarifies that:
- “prescribed system” and “water-cooled chiller” have the meanings given by regulation 7F of the 2013 Regulations; and
- “registrable relevant person” has the meaning given by section 21 of the Act.
This cross-referencing is essential. The Order’s exemptions depend on technical and definitional thresholds established in the 2013 Regulations and the Act. A lawyer should therefore read the Order together with those definitions to determine whether a particular asset qualifies as a prescribed system and whether particular components qualify as water-cooled chillers.
5. Deleted provision (Section 2(5))
The extract notes that Section 2(5) was deleted by S 720/2025 with effect from 1 December 2025. While the content is not shown, the deletion signals that the exemption framework was revised. Practitioners should verify the current text when advising, because deleted provisions can affect interpretive history and transitional compliance arguments.
How Is This Legislation Structured?
The Order is short and structured as follows:
- Section 1 (Citation and commencement): identifies the Order and its effective date (1 December 2020), with an amendment annotation indicating changes effective from 1 December 2025.
- Section 2 (Exemptions): contains all substantive rules. It is organised into multiple subsections:
- Section 2(1): exemption from section 23A(1) for certain single-occupant premises and non-attributable industry activities.
- Section 2(2): exemption from section 23A(1) for prescribed systems used for chilled water supply, subject to downstream exclusions.
- Section 2(2A): exemption where only part of the prescribed system is on the premises and that part excludes water-cooled chillers.
- Section 2(3): exemption from section 26B(2) and (3) for prescribed systems in single-occupant premises for non-attributable industry activities.
- Section 2(4): definitions via cross-references to the Act and the 2013 Regulations.
- Section 2(5): deleted provision (as indicated by the amendment annotation).
Who Does This Legislation Apply To?
The exemptions apply to registrable relevant persons and to prescribed systems located in certain premises. In practice, the Order is relevant to energy service providers, facility operators, and businesses that manage or control energy-related equipment (particularly systems involving chillers) and that may otherwise be subject to compliance obligations under sections 23A and 26B of the Energy Conservation Act.
Applicability turns on factual and legal criteria: whether the premises are wholly occupied by only one person; whether the business activity is attributable to industry sectors listed in regulation 7G(b) of the 2013 Regulations; whether the person has operational control; and, for chilled water supply, where the chilled water is supplied and to whom. The Order also applies in a technical sense to the extent that only part of a prescribed system is located on the relevant premises and that part excludes water-cooled chillers.
Why Is This Legislation Important?
This Order is important because it directly affects the scope of statutory energy conservation obligations. For regulated entities, the difference between being subject to section 23A(1) or section 26B(2) and (3) versus being exempt can materially change compliance duties, reporting obligations, and operational planning.
From an enforcement and risk perspective, the exemptions are not broad. They are conditional and depend on careful classification of industry sector attribution, premises occupancy, and the technical configuration of prescribed systems. Lawyers advising clients should therefore treat the Order as a “compliance gatekeeper”: it requires evidence and documentation to support each exemption element, including tenancy/occupancy arrangements, operational control arrangements, and technical specifications of system components.
Finally, the 2025 amendment (S 720/2025 effective 1 December 2025) underscores that the exemption regime can evolve. Practitioners should confirm the current version and amendment status when advising on ongoing compliance, especially where chilled water supply arrangements or multi-site system layouts are involved.
Related Legislation
- Energy Conservation Act (Chapter 92C) — in particular sections 21, 23A, 26B, and the authorising power in section 77.
- Energy Conservation (Energy Management Practices) Regulations 2013 (G.N. No. S 246/2013) — in particular:
- regulation 7G(b) (industry sectors for attribution); and
- regulation 7F (definitions of “prescribed system” and “water-cooled chiller”).
- Energy Conservation (Exemptions — Sections 23A and 26B) Order 2020 — as amended by S 720/2025 (effective 1 December 2025).
Source Documents
This article provides an overview of the Energy Conservation (Exemptions — Sections 23A and 26B) Order 2020 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.