The Energy Savings Opportunity Scheme Regulations 2014

Explanatory Note

(This note is not part of the Regulations)

These Regulations are made under section 2(2) of the European Communities Act 1972 and implement Article 8(4), (5) and (6) of Directive 2012/27/EU of the European Parliament and of the Council on energy efficiency, and come into force on [ ] July 2014.

Part 2 establishes the Energy Savings Opportunity Scheme (“the Scheme”), administered by the Environment Agency.

Part 3 requires large undertakings, and small or medium undertakings which are group undertakings in respect of a large undertaking (with specified exceptions), to participate in the Scheme. It requires group undertakings to participate in the Scheme as one participant, in default of agreement to the contrary. It places duties on one “responsible” undertaking in each group (or, where an undertaking participates individually, on that undertaking) in relation to the Scheme. A group of undertakings participating as a group, and a sole undertaking participating individually, are referred to as “participants” in the Scheme.

Part 4 requires responsible undertakings to carry out an assessment of the energy consumption of the participant. It requires the responsible undertaking to audit that energy consumption (or, where it has identified areas of significant energy consumption which account for no less than 90% of the participant's total energy consumption, that energy consumption) in every compliance period. The first compliance period ends on 5th December 2015, and subsequent four-year compliance periods end on 5th December 2019 and so on. The audit must analyse the participant's energy efficiency, and recommend reasonably practicable ways in which that energy efficiency can be improved (an “energy saving opportunity”). Audits must be carried out by (or supervised or reviewed by) approved assessors who meet the competence requirements enforced by a professional body and set out in a Publicly Available Specification.

Part 5 requires responsible undertakings to notify the Environment Agency of their compliance with the Scheme by providing prescribed information and confirmation of compliance by a responsible officer of the undertaking.

Part 6 prescribes certain measures which will be accepted as alternative routes to comply with the Scheme, namely a valid energy management system, a Display Energy Certificate and Green Deal Assessment.

Part 7 sets out the compliance and enforcement role of the compliance bodies. These bodies are: the Environment Agency in respect of England, Chief Inspector in respect of Northern Ireland, the Scottish Environment Protection Agency in respect of Scotland, the Natural Resources Body for Wales in respect of Wales, and the Department of Energy and Climate Change in respect of offshore undertakings. The compliance bodies are empowered to monitor compliance with the Scheme by inspection and requests for information in the form of compliance notices, and to issue enforcement notices in the case of default.

Part 8 provides for civil penalties to be imposed by the compliance bodies in respect of certain breaches of the Regulations, and Part 9 provides for appeals against determinations, enforcement notices and penalty notices.

Part 10 sets out the way in which the Regulations apply, with modifications, in relation to certain assets held on trust.

Copies of PAS 51215:2014, referred to in regulation 12, can be obtained from any of the sales outlets operated by the British Standards Institute (BSI) (http://bsigroup.com), or by post from the BSI at Milton Keynes. Copies of ISO 50001:2011, referred to in regulation 33, can be obtained from the International Organization for Standardization (ISO) (http://www.iso.org).

A transposition note, and a full impact assessment of the effect that this instrument will have on the costs of business and the voluntary sector, are annexed to the Explanatory Memorandum which is available alongside these Regulations on www.legislation.gov.uk.