Our energy experts are well versed in dealing with a whole host of different energy legislations and regulations. There has been a firm focus by the Government in recent years to reduce the country’s energy usage and associated carbon emissions. Energy legislation such as ESOS, and most recently SECR have been introduced to help drive this initiative. Whilst these regulations do not apply to all UK businesses, consumers are in turn much more environmentally aware and hence, corporate social responsibility (CSR) is now high on the agenda for many companies which strive to meet the exacting demands of their customers and employees alike.
How we approach compliance
We understand that keeping up to date with the latest legislations can be difficult and not every energy legislation is applicable to every business. Our experts have a comprehensive understanding of current policies and are here to keep you informed, guide you through the legislation and help make the necessary changes for your business to remain compliant and avoid any unnecessary fines for non-compliance.
Whilst legislations such as SECR are not applicable to all businesses yet, it is likely that filter down to all businesses in the near future, being prepared and focusing on your energy usage and best practice can highlight many benefits. A recent client we worked with saved £200,000 by simply reviewing their energy metering and billing, demonstrating how data management and analysis is a fundamental and beneficial part of the energy-saving process.
We've put together a number of information sheets to help to guide you through these regulations:
Targetted Charging Review (TCR)
TCR is the latest energy regulation introduced by Ofgem which will impact the cost of your electricity quotes. Ofgem have decided that there needs to be a change to the way that the Transmission and Distribution Networks recoup the cost of maintenance and where historically sites could avoid paying for electricity in peak periods, they will now be charged a fixed cost which will be included in forecasting on your electricity quote from April 2022.
Streamlined energy and carbon reporting (SECR)
SECR is one of the many energy-focused initiatives which has followed on from the Paris Climate Agreement and the UK’s initial commitment to reducing carbon emissions by 80% by 2050. As of 1st April 2019 certain businesses are required to disclose energy consumption and greenhouse gas emissions (GHG) as part of their Annual Directors Report.
Energy savings opportunity scheme (ESOS)
The third phase of the Energy Savings Opportunity Scheme is now live with an assessment deadline of 5th December 2019. For those businesses that meet the requirements, it’s time to begin the compliance process, start work on your energy audits and identify savings opportunities.
Energy intensive industries (EII)
The EII Exemption is a piece of Government legislation that recognises the financial impact associated with the cost of Renewable Obligation (RO) and small scale Feed-in Tariff (ssFiT) on energy intensive industries.
The government recognises that these indirect costs could make UK energy-intensive businesses less competitive in the market place. They have therefore introduced this legislation to offset the increase in non-commodity related electricity costs and to support their ability to compete on an international basis.
If you haven't heard of non-commodity costs then you may have heard of “non-energy costs”, “third party charges”, or “pass through charges”. In broad terms, the price on your energy bill can be broken down by wholesale costs and non-commodity charges. Whilst the wholesale side is relatively straightforward, the way that the non-commodity costs are charged is far more complicated and are due to a number of different government levies, tariffs and third party charges.
DCP 161 was introduced by Ofgem and was effective from 1st April 2018. This legislation follows the work that has been carried out as a result of P272 as it impacts those businesses that meet the requirements for having HH (Half Hourly) meters.
In contrast to P272, the focus of DCP 161 is on capacity and from 1st April 2018, those half hourly (HH) supplies that exceed their assigned available capacity will be charged significantly more, in some cases as much as up to three times higher than the standard rate. The applicable rates will vary by region and it’s expected that if your business is in an area where demand for capacity is high, your energy costs will reflect this.
If you are not sure whether or not the above regulations apply to your business, please get in touch.
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