Energy Services

Energy Savings Opportunity Scheme (ESOS)

We’re currently in Phase 3 of the Energy Savings Opportunities Scheme (ESOS) & the deadline for compliance is 5^th December 2023.

ESOS requires large undertakings (250+ employees, or a turnover in excess of £44m & an annual balance sheet in excess of £38m) to calculate the total energy consumption across their corporate group, and then audit the significant energy using sites and/or processes.  The resulting recommendations then have to be signed off by a company director, and the Environment Agency notified once the organisation is compliant.

If you already know that you will be caught by ESOS Phase 3, starting the compliance process early could certainly be beneficial –

• Planning a timeline of energy audits can help to minimise disruption further down the  line
• Gathering data over time can be easier than compiling it in retrospect
• The cost and burden of ESOS compliance can be spread out across the phase
• Areas for energy reduction can be identified and realistic recommendations presented – in line with wider Net Zero ambitions

In short, getting ahead of the game allows organisations to reap maximum value from the ESOS scheme; maintaining momentum and buy in and ultimately driving down energy consumption and cost.

 E2 are currently working with clients (who expect to meet scheme criteria on the 31st December 2022 qualification date) to establish a plan of action leading up to the 5th December 2023 deadline. In many ways ESOS covers all of E2’s key areas of expertise, and the requirements are very similar to the work that we carry out with new clients to establish an improvement plan.  You can therefore rest assured that as well as ensuring compliance, E2 will also provide realistic recommendations that you can move ahead with to make savings & meet any internal energy and carbon reduction goals.

Streamlined Energy & Carbon Reporting

With effect from 1st April 2019, UK law has placed a reporting requirement on large companies – the Streamlined Energy and Carbon Reporting (SECR) legislation. The aim of the legislation is to provide a framework that encourages the implementation of energy efficiency measures through regular and transparent energy and carbon reporting.

SECR obliges large companies to report on UK energy and associated GHG emissions from electricity, gas & transport fuel (as a minimum), within their directors’ annual reports. These usage values need to be accompanied by an intensity factor or metric, previous comparative figures (excluded in the first year) and with a narrative on the organisation’s commitment to energy efficiency over the period. Additionally, a transparent methodology to support the report output must be disclosed.

Reporting is annual and will need to be included in directors’ reports, or an equivalent Energy and Carbon Report for LLPs, for financial years starting on or after 1st April 2019.

As with any data included in the annual returns, it’s crucial that these submissions are completely accurate and robust.

E2 will establish the scope of the reporting for your organisation and develop a methodology, collate the energy use data, verify accuracy and compile the findings into a high quality annual submission. We can also work with you to improve your data recording systems and processes, and can help you to make progress year on year through support with energy management systems and projects.

Scope 3 reporting remains voluntary under SECR, but interest from organisations looking to identify opportunities for improved value chain efficiency is gaining momentum. Should scope 3 reporting fit with an organisation’s CSR or Net Zero aspirations, E2 can look to discuss a sensible scope with you.

Once established, the mandatory SECR reporting framework can go above and beyond standard compliance; helping form the basis of a Net Zero strategy.

If you are a large organisation meeting the qualifying criteria*, your obligation under SECR has already begun.

* The scheme is mandatory for all large unquoted companies, quoted companies and large LLPs, where two or more of the following criteria hold true for the reporting period:

• Turnover: £36 million or more
• Balance sheet total: £18 million or more
• Number of employees: 250 or more

Mandatory GHG Reporting

Mandatory GHG Reporting was introduced in 2013; the regulations require all quoted companies (as defined by the Companies Act 2006) to report their annual greenhouse gas (GHG) emissions in their directors’ reports – this must cover GHG emissions from all global business activities for which the company is responsible.

Under SECR, the reporting requirements expanded to include underlying global energy use and an energy efficiency narrative as part of the annual output.  

Although there is no set reporting methodology in place, E2 follow the GHG Protocol Corporate Standard in order to ensure reporting is robust and emissions are effectively demonstrated.

E2 works with clients to produce tailored reports, meeting both regulatory requirements and addressing corporate targets. Areas of support can cover:

• Clarification of organisational boundaries in order to define reportable operations
• Verification of previously reported data
• Consultation to confirm level of voluntary reporting desired and identification of all company emissions
• Data collation
• Consistent reporting methodologies; allowing meaningful data comparisons
• Inclusion of chosen intensity ratios and other information to give context
• Target setting and diagnosis to support active energy management and drive strategic change

Heat Network Regulations

The Heat Network (Metering and Billing) Regulations were introduced in 2014 in order to implement Energy Efficiency Directive (EED) requirements in relation to the supply of distributed heat, cooling, and hot water.

The aim of the Directive is to encourage accurate & transparent metering and billing in order to provide incentives to both tenants and landlords to improve heating performance within buildings.

The first section of the regulations requires heat suppliers to inform the Office for Product Safety & Standards (OPSS) (the regulator) of their network every four years (with the first compliance deadline falling on 31st December 2015).

The second part of the regulations (which came into effect on 27^th November 2020) asks heat suppliers to understand if heat meters or heat cost allocators need to be installed into their buildings. In order to do this, three building classes have been determined:

• Viable – heat metering devices must be installed
• Open – heat metering devices will be required if deemed viable
• Exempt – heat metering devices are not required

There is a requirement for all ‘Open’ buildings to assess viability using a cost effectiveness tool ahead of a 27^th November 2021 deadline.

If the cost-effectiveness assessment results are positive, then heat meters must be installed before 1st September 2022.

How can E2 help?

• Initial scoping, assessment of qualification and heat network responsibility
• Support with navigating notifications & returns
• Meter installation viability assessments, taking into consideration cost and technical feasibility
• Turnkey project installation (should heat meters be required)
• Automated Monitoring and Targeting (AMT) to ensure full regulatory compliance
• Legislative updates and organisation liaison

Climate Change Agreements (CCAs)

Climate Change Agreements (CCAs) are voluntary agreements that allow a range of eligible energy-intensive industries to receive a discount from the Climate Change Levy (CCL) in return for reporting against energy efficiency targets.

Phase 2 of the CCA scheme started in April 2013 and will run until 31 March 2025.

At the end of each target period (target periods span 2 years) CCA holders are required to make a buyout payment if they have failed to meet their target & want to remain in the scheme.

E2 provides clients with fully managed CCA services, ensuring ongoing CCA compliance and maximum scheme benefit. Importantly, we track interim performance over each target period to forecast any potential buyout costs – making sure CCA involvement remains beneficial.  Additionally, we’re able to support our clients with energy reduction strategies that can help avoid or minimise any potential buy-out fees.

If you already have a CCA in place, we can audit your existing output and position to understand if you are getting maximum benefit from the agreement.

TM44 Inspections

Current legislation under the Energy Performance of Buildings Directive (EPBD) states that TM44 Air Conditioning inspections are required for all air conditioning systems with a total cooling capacity greater than 12kW. This applies to both single units and to individual units that combined exceed 12kW.

Inspections must be carried out every five years by an accredited air conditioning assessor. The key aim is to check that air conditioning systems are running efficiently and to reduce energy usage and carbon emissions.

We offer a full service; we conduct the surveys and report back to you with our findings, together with lodging the inspection report on the central database.

Our chosen TM44 output goes above and beyond standard tick box compliance & is designed to not just meet legislative requirements but to also provide system owners with a greater understanding of their air conditioning system’s associated costs and efficiency – offering a powerful tool to make informed decisions with regards to system operation.   

Energy Performance Certificates (EPCs)

Under the Energy Performance of Buildings Directive (EPBD) there is a legal requirement for Energy Performance Certificates (EPCs) to be produced on the sale, rental, or construction of buildings.

A key aim of the directive is to encourage transparency with regards to building energy efficiency. EPCs measure the potential efficiency of building fabrics and services (such as ventilation, cooling, heating and lighting systems), providing an energy asset rating of the building from A to G (where A is very efficient and G is the least efficient).

Certificates are valid for 10 years and financial penalties can be enforced for non compliance. 

Since April 2018 a legal minimum energy efficiency standard of EPC rating of E is required for most commercial premises. If the EPC shows a rating of F or G then the landlord cannot grant a new tenancy, or extend an existing tenancy. From April 2023 these requirements will be extended to cover existing commercial tenancies, regardless whether there’s a change in tenancy to new or existing tenants.

Our accredited energy assessors provide commercial Energy Performance Certificates (EPCs) and Recommendation Reports (RR) for a range of businesses and properties. Performance surveys are conducted in full compliance with EPBD requirements, and key service offerings typically cover:

• Supporting data collation exercise, full visual inspection and measured site survey
• Calculation analysis, EPC generation, and assessor Recommendation Report formation
• Lodgement of the EPC and Recommendation Report on the central register by an accredited Energy Assessor
• Identification and communication of cost-effective energy savings opportunities
• Updates on legislative changes and compliance requirements

Display Energy Certificates (DECs)

Display Energy Certificates (DECs) are required to demonstrate the energy performance of public buildings – raising awareness of energy use to visitors. DECs provide an energy rating of the building from A to G (where A is very efficient and G is the least efficient).

DECs need to be displayed in a prominent position in public buildings which have a total useful floor area over 250m² that are occupied in part or in whole by public authorities and are frequently visited by members of the public. 

Buildings with a floor area of over 1,000m² must renew their DECs every year. DECs for buildings with floor areas between 250m² and 1,000m² are valid for 10 years.

Our accredited energy assessors provide an end-to-end service. We compile invoice and floor space data, conduct the survey and ask the appropriate questions; findings are then used to generate the finished DEC and advisory report & lodgement in the central register.

ISO 50001

ISO 50001 is the internationally recognised standard for energy management. Attaining ISO 50001 certification ensures organisations deliver best practice for energy management, but also makes a strong statement about their corporate social responsibility. E2 can offer consultancy support for clients looking to adopt the standard.

We can conduct a gap analysis of your existing activities, advising your internal ISO 50001 leaders on steps to take to achieve best practice. We deliver a client-led service, providing as much support as you need in order to help you become recognised as a leader in energy management for your sector.

Our full energy surveys are carried out to British Standard BS EN 16247, suitable for full ESOS & ISO50001 compliance. We also specialise in BMS & HVAC optimisation surveys, many of which have resulted in savings of up to 50% for our clients. Our consultants work closely with our project management teams, providing support from concept to commissioning and beyond

• Monthly energy reporting - A full snapshot of energy performance at building level.
• Real time energy reporting – A managed service, which identifies unexpected usage in real time and then works with you to resolve the issue.
• These reports have been developed through many years of experience in energy management. They are designed to support reactive maintenance, verification of individual project savings, performance benchmarking, performance trending and senior management reporting. Naturally, all of E2’s reporting is ISO50001 compliant.
• Bill Validation: E2’s Bureau team rigorously interrogates our clients’ utilities invoices in order to ensure the benefits we lock in at contract level are passed throughout the life of the contract. By maintaining strong relationships with suppliers, stakeholders, data providers and site teams, we keep a firm grasp of our clients’ portfolio, and are therefore able to offer our clients complete confidence in the validity of their invoices.
• FORENSICS: E2 carries out meticulous interrogation of historical supplier invoicing. Using our extensive industry knowledge, full explanatory reports are provided for our clients, outlining all potential opportunities and liabilities that we have identified. We liaise with suppliers to correct overbilling and pursue refunds through to recovery.

In addition we can provide the following Energy & Meter reporting services:

• E2 Automated Meter Reading
• E2 Automated Energy Monitoring
• E2 Energy Reporting
• E2 Energy Alerting

Monthly Energy Performance Reports (MEPRs) cover the analysis of building energy performance; utilising Automated Monitoring and Targeting (aM&T) systems.

An expansion of data and resources provides vast opportunities for building management improvements. However, this data is only beneficial when made meaningful. Ongoing analysis of the meter profiles (via the MEPRs) allows for energy waste to be promptly identified, thereby cutting costs and carbon emissions. Cases of unexpected equipment faults and poor control are picked up in real time and often resolved promptly through low cost measures. Lines of investigation for larger issues observed can be pinpointed accurately, minimising the Maintenance Engineer’s time investigating the issue.

Anomalies flagged via the aM&T analysis are raised as tickets and managed transparently; keeping all parties aware of the latest status on issues. The Monthly Energy Performance reports are issued as a briefing document to ensure that ongoing monitoring is focused on the most energy intensive issues and that they are resolved in a timely fashion.

E2 has worked with clients to develop intuitive energy reporting. Due to varying client requirements Monthly Energy Performance Reports are often bespoke documents, ensuring maximum benefit from the data analysis. Key reporting aspects cover:

• Comprehensive profile analysis; identifying waste in order to implement corrective actions
• Exception reporting; raising alerts should energy profiles breach expected parameters
• Degree day analysis to ensure performance is calculated accurately
• Responsive target setting and diagnosis to support active energy management

E2 are able to resolve all such faults in-house, and offer a tenant recharging service that pays dividends both in terms of tenant relationships and elimination of financial shortfalls. Services include capturing meter readings, calculating bottom line costs to the client, to monthly submission of billing data.