In a bid to meet the requirements of the EU's Energy Efficiency Directive 2012/27/EU, the Department of Energy and Climate Change (DECC) have put forward plans that would force large companies to assess their energy efficiency from 2015.
The DECC consultation sets out proposals that would require companies with more than 250 employees or an annual turnover exceeding €50m, to take part in a mandatory energy savings opportunity scheme (ESOS).
As part of the scheme, companies would be required to have an assessment of their energy consumption completed by an approved assessor every four years, from December 2015. The assessor would produce a list of cost-effective efficiency measures that the firm could then implement.
The Government believes firms could save a cumulative £1.9 billion on energy bills between 2015-2030, citing calculations that investing £15,000 a year in energy efficiency measures as recommended by an assessment could lead to bill savings of £56,400 per year.
Firms will be able to use energy data collected for other regulated programmes, such as the carbon reduction commitment energy efficiency scheme and the EU emissions trading scheme. DECC also confirms that the ESOS will not apply to public organisations or to corporate groups where every UK company is an SME.
The consultation, which closed on 3 October 2013, acknowledges that firms that have achieved the Carbon Trust standard, for example, may have already met the Directive’s requirements with regards to energy audits. However, the document confirms that, post-2015, all assessments will have to be undertaken by approved assessors to ensure a "consistent standard of advice".
In launching the consultation, energy secretary Ed Davey said, "Our proposals aim to provide for a proportionate and better regulation approach, with the objective of yielding net benefits for the UK as a result of additional energy saving."
The Government has until 5 June 2014 to implement the requirements of the Energy Efficiency Directive 2012/27/EU into UK law. Davey confirmed that it aims to have legislation published in Spring 2014.
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