Currently there are both UK and EU energy and carbon related regulatory schemes in place, this is as a response to man-made climate change and to ensure a future sustainable continuity of energy supply.
The aim is to drive greater energy efficiency, reduce greenhouse gas emissions, and encourage diversification of energy supply, particularly towards alternative and renewable sources. Such regulatory schemes can be divided into two broad groups
Those that place mandatory requirements on organisations and those which offer financial incentive to reduce energy consumption by way of investing in new energy efficient products and services
Primary Mandatory regulation is:
The CRC Energy Efficiency Scheme (CRC) formerly known as the Carbon Reduction Commitment, qualifying organisations will
- Have at least 1 half-hourly electricity meter settled on the half-hourly market.
- Have consumed more than 6,000 megawatt-hours (MWh) per year of half-hourly metered electricity during a qualification year .
Qualifying organisations have to comply legally with the scheme or face financial and other penalties.
Organisations that do not meet the 6000 MWh threshold will have to make an informal disclosure of their half hourly electricity consumption during the qualification year.
In addition to:
- Building Regulations
- Energy Certificates (EPCs and DECs) – for all tenanted and public buildings over 1000 square metres.
- Climate Change Levy (CCL) levied at between 10% and 65% per unit of consumed energy.
- Climate Change Agreements (CCAs) This is agreed voluntarily and compliance results in a lower rate of CCL paid.
EU Emissions Trading System (EU-ETS) It provides an incentive organisations to reduce their carbon emissions, because they can then sell their surplus allowances.
Industries that are covered include:
- Electricity generation
- Iron & steel
- Mineral processing (for example: cement manufacture)
- Pulp and paper processing
Fluorinated Gas (F-gas) Regulations F gases form part of the Kyoto Protocol’s ‘basket’ of greenhouse gases. Action to contain, prevent and reduce emissions of F gases is being taken by the EU as part of its obligations under the Kyoto Protocol. Sectors affected by the EU F gas Regulation are:
- stationary refrigeration, air conditioning and heat pumps
- fire protection systems and fire extinguishers
- mobile air conditioning
- high voltage switchgear
- Industry specific regulatory requirements
There are also schemes in place which offer financial incentive to reduce energy consumption by way of investing in new energy efficient products and services.
Enhanced Capital Allowances (ECAs) – The ECA energy scheme provides a tax break to help businesses invest in energy-saving equipment that might otherwise be too expensive.
To qualify for the allowance, the equipment must be classified as “plant” or “machinery” under tax law.
Feed-in Tariffs for renewable technologies(FITs) If you generate your own electricity (eg with solar panels or a wind turbine) your energy supplier might pay you money. This is called a ‘Feed-in Tariff’ (FIT).
Renewable Heat Incentive (RHI)– helps businesses, the public sector and non-profit organisations meet the cost of installing renewable heat technologies.
The types of heating covered by the scheme are:
- heat pumps – ground source, water source
- solar thermal collectors
- biomethane and biogas