Through the Making Policy Clear Series, Acclaro Advisory informs clients of policy and regulatory changes around energy, environmental and social issues. Series 1 is focused on the energy and carbon regulatory schemes which impact business energy cost and reporting responsibilities. To start let’s clarify the origin of ESOS. The UK ESOS scheme was put in place as a response to the Article 8 of the EU Energy Efficiency Directive (2012/27/EU).
The EU Energy Efficiency Directive (EED) (2012/27/EU) contains a number of requirements and measures intended to increase the energy efficiency across the European Union. The Directive establishes a set of binding measures to help the EU reach its 20% energy efficiency target by 2020 and to support further energy efficiency improvements beyond 2020.
All EU member states are required to transpose and implement Articles of EED into regulation suited to each country.
The EED (2012/27/EU) Article 8 requires the Member States to introduce a mandatory programme for large enterprises (non-SME* ) to conduct regular energy assessments and efficiency audits. This has been transposed in various forms across the EU member states with key elements remaining roughly similar for each country.
* Small-Medium Enterprise
How are the 28 EU countries implementing EED Article 8?
Navigating the compliance regime across Europe can be a difficult process, especially for multinational organisations.
The EED Article 8 compliance qualification criteria are generally built around the European Commission definition a non-SME:
- more than 250 people; AND
- those with an annual turnover exceeding €50 million; OR
- total assets exceeding €43 million.
However, this can vary based on regional level definitions of a large enterprise and other related laws. In addition, some Member States have included additional qualification and compliance criteria.
Some Member States follow the EU rule on the consolidation of at least 2 of the qualification criteria (financial and employee count) while others, such as the UK Energy Savings Opportunity Scheme Regulations 2014 (ESOS), requires only one of these criteria to be met.
Other examples of transposed variations include:
- The UK ESOS utilises a “one in, all in” methodology for the scheme qualification. Once one UK undertaking qualifies, all of the undertaking UK operations automatically qualify. 90% of the energy consumed must be audited for compliance and sampling* is accepted. However, this is not the case across EU Member States.
- In France, a company qualifying is identified by its SIREN number in addition to meeting one of the large entity criteria as with UK ESOS. At least 80% of the annual energy consumption must be audited and sampling* is accepted.
- In Bulgaria, compliance governed by the country definition of a non-SME with industrial sites having an annual compliance threshold to comply. Most of the transpose Article 8 is tied to other building legislation which means the owners can be responsible for ensuring that identified measures are put in place.
- In Sweden, companies qualify for mandatory energy assessment based on the EU Commission definition of a non-SME. Here linked and partner entities (local or overseas) should be considered. However, an energy threshold applies. Reporting is also allowed either in stages over the 4-year period or at one point in time during the 4 year period.
*Sampling rules apply
Acclaro Advisory provides comprehensive information in one location
Through us, you have access to knowledge and experience on the transposed regulation in the 28 EU countries. We can help you navigate the complex challenge of meeting all variations of requirements of the energy audit obligation.
Our team is up-to-date with the status of the directive across Europe and are equipped to support full compliance and carry out audits.
If you would like to understand these points further or would like advice or support with Article 8 of the EU Energy Efficiency Directive 2012/27/EU, please contact Erica Hall on +44 1183 273519
In the meantime, you can learn more about the Acclaro Energy Programme which helps you adapt and address responsibilities of energy efficiency as a business.