15th SEPTEMBER 2015
GREEN TUESDAY • Data Management • Legislation • Compliance
A Unique Perspective
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A Unique Perspective | Green Tuesday | 15.09.2015
EU: Energy Efficiency Directive transposition update The Energy Efficiency Directive (EED) entered into force on 4 December 2012 and is a framework directive which sets overarching objectives and targets to be achieved by a coherent and mutually reinforcing set of measures covering virtually all aspects of the energy system: from supply, transformation, transmission and distribution to consumption. The European Union has three climate and energy targets to be reached before 2020: a 20% of energy derived from renewables, 20% reduction in greenhouse gas emissions and a 20% increase in energy efficiency. If these 2020 targets are not met, a secure, sustainable and affordable energy system will be exceedingly difficult and expensive to achieve.
Assessment of the transposition of Article 8 of the Energy Efficiency Directive (2012/27/EU) into Member State legislation From an energy consumer and business perspective, Article 8 of the Energy Efficiency Directive (EED) is of particular interest, as it lays out the conditions and obligations for energy audits. Gaining a picture of a business’ energy consumption, its processes, infrastructure and transport is an important first step to control and consequently cut production costs. In all Member States (except Portugal), mandatory energy audits have to be carried out within four years of the previous audit, and the first one has to be completed by 5th December 2015. Audits maybe carried out by in-house experts or external energy auditors. Currently 15 Member States have fully transposed (Austria, Belgium, Bulgaria, Denmark, Germany, Ireland, France, Italy, Malta, Portugal, Romania, Slovakia, Finland, Sweden, United Kingdom) and 3 member states have partly transposed (Croatia, Hungary, Slovenia) the Energy Efficiency Directive. Art. 8 EED adopted the obligation for “non-SMEs” to carry out mandatory energy audits. A Mediumsized enterprise (SME) is defined as an enterprise which employs fewer than 250 persons and whose annual turnover does not exceed EUR 50 million or whose annual balance-sheet total does not surpass EUR 43 million.
EED is a framework directive which sets overarching objectives and targets to be achieved
Article 8 of the Energy Efficiency Directive (EED) it lays out the conditions and obligations for energy audits
Currently 15 Member States have fully transposed and 3 member states have partly transposed the Energy Efficiency Directive
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A Unique Perspective | Green Tuesday | 15.09.2015
By early June 2015, one year after the implementation deadline, 19 EU Member States have, at least partly, transposed Art. 8 of the EED into their national legislation. Delayed transposition in 10 Member States and missing secondary legislation in additional countries create considerable legal uncertainty for businesses. Large companies are generally aware of the December 2015 deadline for conducting mandatory audits. However, the conditions under which these audits have to be performed are, in many Member States, still unclear. Moreover, in some countries, the provisions on energy audits obligations deviate considerably from the Directive, leading to unnecessary bureaucratic burden. In Member States like Slovenia, Croatia, Italy, Bulgaria and Romania small and medium enterprises can be made subject to mandatory energy audits, although they comply with the EU SME definition and should therefore be exempted. Further bureaucratic burden can be identified in the national provisions transposing the minimum criteria for energy audits. Although clear rules are to be welcomed, several countries put in place very detailed provisions, going far beyond the guidelines stated in Annex VI of the Directive. Also, record keeping obligations exceeding 5 years serve no purpose. When it comes to promoting energy audits to SMEs, only half of Member States currently ensure sufficient financial incentives. Co-financing rates are in some cases considered to be too low. Also, national governments have, so far, largely failed to involve representative intermediary organisations in awareness raising actions for promoting energy audits and management systems in the EU.
Next Steps for EED Participants The compliance date for EED (5th December 2015) is approaching fast. Participants need to act now to: 1) Determine the best route(s) to compliance for their business. 2) Implement the chosen route(s) to compliance.
Delayed transposition in 10 Member States and missing secondary legislation in additional countries create considerable legal uncertainty for businesses
Although clear rules are to be welcomed, several countries put in place very detailed provisions, going far beyond the guidelines stated in Annex VI of the Directive
The compliance date for EED (5th December 2015) is approaching fast and participants need to act now
If you are in scope of EED but not yet taking steps to comply or if you wish to check if you are captured by EED and how to become compliant, please contact EnergyQuote JHA.
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A Unique Perspective | Green Tuesday | 15.09.2015
UK: Commission mulls relaxing VAT rules for energy efficiency in buildings The European Commission (EC) has warned the UK government that its system of energy performance certificates (EPCs) is in breach of a key energy directive. It has asked the UK to ensure EPCs are displayed in agreement with the Energy Performance of Buildings Directive (EPBD). The EC said it had received a complaint about a potential lack of compliance by the UK over the issuing and display of certificates in public buildings. It said the UK’s system of penalties and controls for the display of EPCs ‘appears insufficient to ensure compliance with the obligations of the directive. The UK has previously received a letter of formal notice regarding the possible infringement, and it now has two months to notify the EC of measures taken to remedy this situation – otherwise it may be referred to the EU Court of Justice. The infringement could apply to EPCs, which show predicted energy use, or display energy certificates (DECs), which record operational energy use. The display of certificates is required in buildings of more than 500m2 that are occupied by a public authority or frequently used by the public.
The (EC) has warned the UK government that its system of energy performance certificates (EPCs) is in breach of a key energy directive
The UK has previously received a letter of formal notice regarding the possible infringement
The display of certificates is required in buildings of more than 500m2 that are occupied by a public authority or frequently used by the public
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