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

https://www.gleeds.com/

Gleeds

@GleedsTV #gleeds130

@Gleeds1885

FOLLOW US…

Claire.Geeson@gleeds.co.uk

Office: +44 (0)113 236 6900

Mobile: +44 (0)771 8804 156

Claire Geeson

@CGeeson

CONTACT

http://www.totalgiving.co.uk/mypage/claires130miles