The Energy Efficiency (Encouragement, Assessment and Information) Regulations 2014

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations transpose Articles 8(2), 14(1), (3) and (10), 15(2), 17(1), 17(4), 18 and 19 of, and Annexes II, VIII, IX and X to, Directive 2012/27/EU of the European Parliament and of the Council of 25th October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC (“the Directive”) (OJ No L 315, 14.11.2012, p1).

Regulation 3 requires the competent authorities (defined in regulation 2) to develop programmes to encourage small and medium-sized enterprises to undergo energy audits. It also requires the competent authorities to make available to small and medium-sized enterprises examples of how energy management systems could be beneficial to their businesses. The document mentioned in regulation 3, BS EN ISO 50001:2011, can be obtained from the British Standards Institution at www.bsigroup.com and from the British Standards Institution customer services at 389 Chiswick High Road, London, W4 4AL, upon payment of a fee.

Regulation 4 imposes a duty on the Secretary of State to assess the potential for high-efficiency cogeneration of heat and electricity and efficient district heating and cooling in England, Wales and Northern Ireland, taking into account costs and benefits. It also requires the Scottish Ministers to complete such an assessment in relation to Scotland. The Secretary of State is under a duty to notify both assessments to the European Commission by 31st December 2015. The Secretary of State and the Scottish Ministers must update the assessments in accordance with any request from the European Commission under Article 14 (1) of the Directive.

Regulation 5 amends the Guarantees of Origin of Electricity Produced from High-efficiency Cogeneration Regulations 2007 (“the Cogeneration Regulations”) (S.I. 2007/292). These amendments are necessary because the Directive repeals Directive 2004/8/EC of the European Parliament and of the Council on the promotion of cogeneration based on a useful heat demand in the internal energy market and amending Directive 92/42/EEC (“the Cogeneration Directive”) (OJ No L 52, 21.2.2004, p50). Article 14(10) and Annexes II and X of the Directive replace the requirements of Article 5 of the Cogeneration Directive which the Cogeneration Regulations transposed. Regulation 5 removes references to the Cogeneration Directive and replaces them with references to the relevant parts of the Directive. These concern the requirements for the issue of a guarantee of origin certifying that the electricity in respect of which the certificate is issued is electricity produced from high-efficiency cogeneration (electricity produced from cogeneration meaning electricity produced from combined heat and power).

The document mentioned in regulation 5(6), “Combined Heat and Power Quality Assurance Standard, Issue 5, November 2013, published by the Department of Energy and Climate Change”, may be obtained from the Heat Strategy and Policy Team, Department of Energy and Climate Change, 3 Whitehall Place, London, SW1A 2AW.

Regulation 6 imposes a duty on the Gas and Electricity Markets Authority (“the Authority”) to assess the electricity and gas infrastructure of England, Wales and Scotland with a view to identifying the potential for energy efficiencies. The Authority must make its assessment and suggested measures for improvement available to the Secretary of State by 30th June 2015.

Regulation 7 requires the competent authorities to ensure that information on schemes to promote energy efficiency is accessible and widely disseminated to relevant market actors. It requires the competent authorities to encourage the provision of information to banks and other financial institutions on the opportunities for financing energy efficiency measures. Regulation 6 also requires the competent authorities to promote the provision of information, training and awareness-raising initiatives to inform individuals of the benefits and practicalities of energy efficiency measures.

Regulation 8 introduces duties for the competent authorities to publish information relating to energy service contracts, energy service providers and energy performance contracts, including the provision of model energy performance contracts for the provision of energy efficiency measures to public authorities. Competent authorities must also encourage the development of quality labels.

Regulation 9 requires the Secretary of State to publish a review of the energy services market in the framework of the national energy efficiency action plan which is required by the Energy Efficiency (Building Renovation and Reporting) Regulations 2014 (S.I. 2014/952).

Regulation 10 requires the competent authorities to evaluate and where necessary remove barriers to energy efficiency. In particular, these may include barriers relating to properties owned by more than one person or where there is a tenant, and barriers relating to public purchasing or accounting rules. Appropriate steps must also be taken to remove barriers impeding the uptake of energy performance contracting or other types of energy services.

Regulation 11 amends the definitions of terms used in the Energy Efficiency (Eligible Buildings) Regulations 2013 (S.I. 2013/3220).

Regulation 12 amends regulation 4(b) of the Energy Efficiency (Building Renovation and Reporting) Regulations 2014 (S.I. 2014/952).

A full regulatory impact assessment has not been produced for these Regulations as no impact on the private or voluntary sectors is foreseen. A transposition note is annexed to the Explanatory Memorandum which is available alongside these Regulations on www.legislation.gov.uk.