New compliance requirements introduced by the European Union
(Energy Efficiency) Regulations 2014 (the "2014
Regulations"), which came into force on 4 December 2014, are
now beginning to come into focus for companies falling within the
remit of the legislation. The purpose of the 2014 Regulations is to
give effect to the EU Energy Efficiency Directive (2012/27/EU)
which identifies measures that must be introduced by EU Member
States in order for the EU to meet its binding energy efficiency
and emissions targets.
The most significant aspect of the 2014 Regulations for companies
in Ireland is the establishment of the "energy audit
scheme". Any company that has: (i) more than 250 employees;
and (ii) an annual turnover exceeding €50 million or an annual
balance sheet total exceeding €43 million, is required to
carry out energy audits. The first energy audit must be carried out
prior to 5 December 2015. The next audit and subsequent audits must
take place withinfour years of the previous energy audit. The
audits must be carried out by either: (i) independent registered
energy auditors; or(ii) in-house energy auditors registered under
the energy audit scheme and who are obliged to provide audit
details to the Sustainable Energy Authority of Ireland (the
"SEAI") upon request. The SEAI has established a national
registration scheme for energy auditors. A person shall not be
considered for registration as an energy auditor unless they meet
certain minimum criteria.
There is currently a discrepancy between the 2014 Regulations and
SEAI guidance in relation to what companies are required to carry
out an energy audit. The SEAI guidance states that the energy audit
scheme may apply to any company that has: (i) 250 employees or
over; or (ii) an annual turnover in excess of €50 million and
an annual balance sheet total in exceeding €43 million. Given
the need to confirm the applicable criteria to allow clients
determine whether the obligation to carry out an energy audit
applies, we expect that additional guidance will be published by
SEAI shortly to clarify this point.
A company may, in certain circumstances, be exempted from these
energy audit requirements if it is implementing an energy or
environmental management system certified by an independent body
according to the relevant European or international standards (ie,
ISO 50001 or ISO 14001), provided that the SEAI ensures that the
management system concerned includes an energy audit on the basis
of specified minimum criteria.
The SEAI is required to publish minimum criteria for energy audits
on its website. Among other requirements, energy audits must be
proportionate and sufficiently representative to permit the drawing
of a reliable picture of overall energy performance and the
reliable identification of the most significant opportunities for
improvement.
In addition to the above, the 2014 Regulations: (i) impose
obligations on public bodies relating to the efficient use of
energy so that the public sector will demonstrate an exemplar role,
including in the areas of energy audits, energy efficient public
procurement and purchase or lease of energy efficient buildings;
(ii) set out specific requirements around metering and billing for
energy users; (iii) set out requirements in relation to the
promotion of energy in the combined heat and power (CHP) sector;
and (iv) set out a range of obligations regarding the
co-ordination, supervision and issuance of guarantees of
origin.
Follow this link to the 2014 Regulations.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.