Energy Legislation

Achieving and surpassing performance targets

In order to encourage property owners and occupiers to improve the energy efficiency of property, the government introduced an energy legislation that materially affects companies that occupy buildings and run transport fleets and impacts on property values.

The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment scheme for organisations in the UK that meet the qualification criteria. Organisations that qualify for ESOS must carry out ESOS assessments every 4 years. These assessments are audits of the energy used by their buildings, industrial processes and transport to identify cost-effective energy saving measures.

Key points to note:

  • Second phase of ESOS is due to conclude in December 2019.
  • Captures all Non-SME’s with either more than 250 employees or a turnover in excess of €50m and an annual balance sheet total of €43m.
  • The Environment Agency will publish any businesses that fail to comply and will issue fines appropriate to the level of non-compliance.

Every ESOS compliance submission must be managed by an approved ‘Lead Assessor’ and Low Carbon Alliance’s own Lead Assessors are ready to assist your business ahead of the Phase II deadline.

The Minimum Energy Efficiency Standard (MEES) which came into force in England and Wales on 1 April 2018, applies to private rented residential and non-domestic property and is aimed at encouraging landlords and property owners to improve the energy efficiency of their properties by restricting the granting and continuation of existing tenancies where the property has an Energy Performance Certificate Rating of F or G.

Key Points to note:

  • The Minimum Energy Efficiency Standard Rating is E and above.
  • Applies to new leases and renewals from 1 April 2018 and all leases from 2023.
  • Some exemptions (third party consent, cost effective works test).
  • Financial Penalties for non-compliance £2,000 – £150,000.

With in-house engineering Low Carbon Alliance can guide you through the process of improving the energy efficiency of your property portfolio, to mitigate the risk on non-compliance.

Contact us for a free initial consultation