The Green Deal and the related Energy Company Obligation (outlined in our spring 2013 issue) have not yet delivered anywhere near the activity which the Government envisaged. Originally this was a policy area that was expected to see a major take up by housing associations and others to help the UK meet its carbon budgets and address fuel cost and poverty issues by reducing energy used. However, in practice, to date, both the Green Deal and ECO have disappointed. Press reports indicate the Government is considering extending the intended £1.3bn per annum ECO scheme so that it can work better alongside the Green Deal. It has also been reported that an extension may be made to the timetable. Under ECO, energy companies could be fined up to 1% of their global turnover by Ofgem if they do not meet their targets and so it may be that RPs might find some increasingly good deals about, but the uncertainty over the future of the schemes may undermine opportunities.

Zero carbon homes

The Government is struggling to promote the energy efficiency of existing stock. However, it reiterated in August that it is committed to implementing zero carbon homes from 2016. Exactly what constitutes 'zero carbon' has been consulted upon, with the deadline for feedback ending on 15 October 2013. Amongst the matters covered are 'allowable solutions'. These solutions would potentially enable 'off site' measures including, possibly, retrofitting other existing stock or making a payment which is directed to a fund that then invests in projects which will deliver carbon abatement on the developer's behalf. 2016 is not far off in development terms and so longer term business plans will need to make some assumptions about the likely impact of the final regulations.

Sustainability reporting requirements

While elements of government policy are clearly not working as intended, the wider sustainability agenda rolls on and regulatory impact continues to bite. Greenhouse gas reporting has seen developments in recent months and although at present there is no general mandatory obligation for RPs, large or small, to report on this area at present, it is likely there will be increasing pressure and in the medium term a mandatory reporting requirement for large associations is likely.

Here are a couple of areas of particular general interest..

Companies Act 2006 (strategic report and directors report regulations 2013)

From 1 October 2013, regulations will require all UK quoted companies to report on their greenhouse gas emissions as part of their annual directors' report. This requirement affects all UK incorporated companies listed on the main market on the London Stock Exchange, a European Economic Area Market or shares listed on the New York stock exchange or NASDAQ. The Government states on its web page detailing the legislation that it encourages all other companies to report similarly, although this remains voluntary.

Article 8 of the energy efficiency directive of the EU

This article came into force on 4 December 2012 and requires that all member states implement a system of energy audits for large enterprises. The requirement is that such enterprises are required to have been audited by 5 December 2015. The Government proposes to introduce legislation by way of regulations under the Energy Savings Opportunities Scheme (ESOS), which is expected to be implemented next year. The likelihood is therefore that within the foreseeable future (and actually before that other major reporting change FRS102 is mandatory) all large entities (which includes a number of RPs) will have to report their greenhouse gas emissions. Some thought on the planning for the logistics of this reporting should probably commence now!

With the economy (possibly) on the mend, although sections of the Government are certainly keen that climate change concerns do not impede economic progress, various reporting requirements continue to build and associations should at least keep a weather eye on developments in this area as part of their strategic planning and risk and reporting considerations.

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