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Energy Legislation Update
September 2015Leeds
Claire Geeson(BA, MSc, AIEMA)
Sustainability Consultant BREEAM Assessor
• Introduction
• Legislative context
• Energy Savings Opportunity Scheme (ESOS)
• Scope
• Implementation
• Lead Assessor role
• Case Study: Gleeds
• Heat Network Regulations (HNR)
• Minimum Energy Performance Standards (MEPS)
OVERVIEW
GLEEDS SUSTAINABILITY SERVICES
We provide a range of services, including:
• Sustainable Building Certifications and Value-added Services
• Energy Services – EPCs, DECs, SEP
• Planning Support – Sustainability Statements
• Corporate Sustainability Advice
Energy Efficiency Directive >>
Energy Savings
Opportunities
Scheme (ESOS)
December 2015
Energy Efficiency Directive >>
Heat Network Regs
(HNR)
December 2015
Energy Act 2011 >>
Minimum Energy
Performance
Standards (MEPS)
April 2018
climate
change
20% reduction in greenhouse gas emissions(from 1990 levels)
20% of EU energy from renewables
20% improvement in energy efficiency
LEGISLATIVE DRIVERS: THE 2020 VISION
European Commission Strategy
20 : 20 : 20 by 2020
Energy Saving Opportunity Scheme (ESOS)
WHAT IS ESOS?
• Mandatory assessment for large undertakings
• Identify energy-saving opportunities
• No legal obligation to implement
• But real value gained by going beyond compliance
• Phase 1 compliance due 5th
December 2015 (+ every 4 years onwards)
• Civil penalties may be applied by EA
BENEFITS
Improved green credentials
Competitiveness
Profitability & cash flow
Risk reduction
Smarter procurement
Responsibility Target
setting & reporting
Support existing certifications
Staff collaboration
Efficiencies
Be an exemplar
Start of the Journey…
“ESOS will identify
thousands of energy saving
initiatives…which could save
organisations more than £31bn
between 2015 and 2030if all the
recommendations in the ESOS reports are carried out”
Department of Energy & Climate Change (DECC)
SCOPE
• ESOS targets around 10,000 of the UK’s largest undertakings
• As at the qualification date (Phase 1: 31st December 2014)…
Responsible for paying the energy bill; Employs 250 or more people, OR Employs less than 250 staff but has:
- an annual turnover in excess of 50 million euro (£38,937,777)
- and an annual balance sheet total in excess of 43 million euro (£33,486,489)
Part of a corporate group which meets the above criteria
• Most larger charities and Universities that get more than half their funding from private sources are in scope.
• Exempt if a contracting authority or subject to Insolvency procedures
COMPLIANCE & TIMESCALES 1 Measure total energy
consumption across:
> Buildings
> Industrial activities
> Transport
(direct fuel consumption only i.e. supplied for business purposes)
For 12 months (including qualification date).
Identify areas of significant consumption:
> At least 90% of total
2 Conduct energy audits to identify cost-effective energy efficiency recommendations
> Ensure areas of significant energy consumption are covered:
- ISO 50001 / DEC / GDA
- ESOS Audits
(conducted or reviewed by an ESOS Lead Assessor)
> Review by Board level Director(s)
3 Report compliance
> Notify the EA that they have complied with the scheme (online)
- Participant & Lead Assessor info
- Energy proportion via each compliance route
> Maintain Evidence Pack:
- Audited by ESOS Lead Assessor
- Not submitted to EA
- Retain for 12 years
ESOS ENERGY AUDIT // ESOS LEAD ASSESSOR
• The ESOS audit should:
o analyse energy consumption and efficiency
o identify energy efficiency improvements
o recommend practical and cost effective energy saving measures
o identify estimated costs and benefits
o apply a proportionate sampling approach
• Must be conducted or reviewed by a qualified Lead ESOS Assessor
Search by location or specialism
using CIBSE’S online search tool:
www.cibseenergycentre.co.uk
• Qualification Scope-check:
Large corporate undertaking
Pay the energy bill
Over 250 staff in UK
NOT a contracting authority or subject to an insolvency procedure!
• Energy Consumption Scope-check:
Buildings Our offices
Transport Vehicles supplied with fuel for business purposes
× Industrial activities
• UK Office Location Scope-check:
• Stand-alone buildings – sole occupancy – metered energy • Serviced offices – occupancy of space / floors – metered energy• Serviced offices – occupancy of space / floors – energy included in Landlord’s charge
• Timescales Scope-check: 12 consecutive months data: January 2014 – December 2014
• Two-pronged approach to data collection:
1. Office energy consumption data - energy bills
2. Grey fleet mileage & fuel type data - staff expense forms
GLEEDS’ ESOS: SCOPE
× No ISO 50001 in place / No DECs / GDAs
…therefore, chosen compliance route: ESOS compliant energy audits
• Building types reviewed by Internal ESOS Lead Assessor
• Proportionate approach:
1. Nottingham2. Leeds3. London
• Audits undertaken June – September 2015
GLEEDS’ ESOS: BUILDINGS
Leeds
Nottingham Wilford House
• Timescales: Same consecutive 12 month period
• Scope: Vehicles supplied with fuel for business purpose
Company Cars Grey Fleet (car allowance / own car for business purposes)× No freight
• Data units: Must be reported in energy units (e.g. kWh) or energy expenditure (£)
• Data sources: Transport receipts Mileage claims Average fuel consumption rates
• Data collection:
Where actual usage data is not available, take reasonable estimations of consumption based on verifiable data (e.g. expenditure)
E.g. number of expensed miles x average fuel consumption factor (UK Government conversion factors for Company Reporting)
GLEEDS’ ESOS: TRANSPORT
Commuting to and from work / personal mileage is NOT included.
Over-arching Opportunities:
Buildings:
• Energy policy
• Utility bill monitoring
• Staff training & awareness
• Planned Investment
• Voltage management
GLEEDS’ ESOS: ENERGY SAVING OPPORTUNITIES
Transport:
• Data availability / consistency
• Nature of business: consider travel alternatives
• Travel Policy
Ongoing actions…• Board Director Review• Notify compliance• Maintain Evidence pack• Communication & Implementation ISO 14001
The Heat Network (Metering and Billing) Regulations 2014 (HNR)
HEAT NETWORKS
Applies to all business and individuals (‘heat suppliers’) who supply and charge for heating, cooling or hot water via a liquid distribution system.
This is usually through:
• A DISTRICT Heat Network:
OR
• A COMMUNAL Heat Network:
OBLIGATIONS & TIMESCALEES
Confirm location, size and supply details of heat network to NRMOby 31st December 2015and every four years going forwards
• Install Bulk (Point of Entry) Meters by 30th April 2015
• Install End Customer Meters by 31st December 2016
Bill End Customers at least yearlyFrom 30th April 2015
*Some exemptions apply: e.g. where not technically feasible or cost effective to retrofit a meter over a ten year period.
Minimum Energy Performance Standards (MEPS)
• Duty on Secretary of State under Energy Act 2011• Improve Energy Efficiency in Private Rented Sector; Domestic AND Non-domestic
• Some Exemptions
• Enforcement via Local Authorities / Trading Standards
• Penalties for non-compliance:
- £5,000 to £50,000 <3 months - £10,000 to £150,000 >3 months
MEPS
Domestic tenants can
request energy
efficiency
improvements –
reasonable requests
cannot be refused.
1st April 2016
All privately rented
buildings where new
leases are granted or
renewed must have an
EPC rating of E or
better. Applies to
both domestic and
non-domestic
properties
1st April 2018
All privately rented
domestic buildings
must have an EPC
rating of E or above
including existing
leases.
1st April 2020
All privately rented
non-domestic
buildings must have
an EPC with an E
rating or above,
including existing
leases.
1st April 2023
Considerations
FINAL THOUGHTS
• Painful Policies??
The process may be painful…but there is potential for positive outcomes
• ESOS
- slow uptake / low awareness sudden rush now
- places a clear obligation on Large Undertakings
- planning required, especially if numerous sites
• HNR
Heat Suppliers need to be clear on responsibilities, check exemptions and complete notification.
• MEPS
Private Landlords need to
- understand existing rating of their buildings
- pre-empt potential works required
• Importance of keeping up to date with policy changes
• Place of Sustainability in Organisational Operations and Strategy
Energy Savings
Opportunities
Scheme:
December 2015
Heat Network
Regulations:
December 2015
Minimum Energy
Performance
Standards:
April 2018
KEY DEADLINES ARE COMING!!
Thank you for
listening!
• Sustainability
https://www.gleeds.com/Services/Advisory/SustainabilityServices/
• ESOS
https://ec.europa.eu/energy/en/topics/energy-efficiency/energy-efficiency-directive
https://www.gov.uk/energy-savings-opportunity-scheme-esos
https://www.gov.uk/government/publications/comply-with-the-energy-savings-opportunity-scheme-esos
www.cibseenergycentre.co.uk
https://www.energyinst.org/training/energy-management-courses/esos-training/esos-toolkit
• HNR
https://www.gov.uk/heat-networks
http://blog.energswitch2.com/blog/heat-network-metering-and-billing-regulations-2014-5-steps-to-compliance
• MEPS
http://www.building.co.uk/sustainability-minimum-energy-performance-standards-for-commercial-buildings/5069388.article
https://www.gov.uk/government/consultations/private-rented-sector-energy-efficiency-regulations-non-domestic
LINKS
Office: +44 (0)113 236 6900
Mobile: +44 (0)771 8804 156
Claire Geeson
@CGeeson
CONTACT
http://www.totalgiving.co.uk/mypage/claires130miles