Changes to energy

legislation and what they mean to the facilities management sector

Facilities Managers and organisations operating in the sector need to be aware of upcoming changes to government energy legislations that will ultimately affect their businesses and management of their energy consumption. Adam Pigott, energy engineer from Kinect

Energy Group discusses these changes and his thoughts on how it will impact businesses in the long-term.

There are a number of changes to government energy legislations that are coming into effect that could have a major impact on many operating in the facilities management sector. These new updates are being introduced to ensure businesses identify energy efficiencies and report on their carbon footprint. Requiring rigorous recording of their energy consumption. Eligible businesses that fail to comply could face large fines. You may think this is just more legislations

being introduced to generate more work for businesses, however, they also offer opportunities for facilities managers to make significant savings and become more energy efficient in their gas, electricity and water use.

Streamlined Energy and Carbon Reporting (SECR)

The new Streamlined Energy and Carbon Reporting (SECR) Framework will launch in 2019 as part of a drive to enable business and industry to make a 20% reduction in energy consumption and CO2 emissions by 2030. While initiatives like SECR are broadly

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welcomed by the industry and will have a significant impact on the UK’s wider carbon footprint, in the short term the implementation of SECR may create more work for businesses, in particular smaller ones. Although full governmental guidance

remains a work in progress, the framework looks set to broaden the number of businesses that need to comply, from roughly 6,000 with the existing Carbon Reduction Commitment (CRC) reporting requirement to nearly 12,000. Furthermore, the new legislation

introduces the requirement to report not just on electricity and gas consumption, but on energy used by business-related transportation – a requirement that introduces a whole new set of challenges. Unlike the CRC, where qualification

was based on a reasonably high energy consumption threshold, SECR will impact all UK organisations that employ 250 people or more, or who have a turnover in excess of £36m, and a balance sheet of £18m. Many participants will not be particularly energy intensive and, consequently, may not

currently have the necessary structures in place to capture and report the mandated information. For these businesses it will be a steep

learning curve and it will be interesting to see how in the longer term the resultant benefits stack up against the additional administrative requirement.

Energy Savings Opportunity Scheme (ESOS) Phase Two

Meanwhile, the Energy Savings Opportunity Scheme (ESOS) Phase 2 will also present challenges and opportunities in equal measure. ESOS first came into effect in 2015

to raise awareness of how much energy large organisations consume and ultimately provide recommendations to reduce the amount of energy being wasted, and the associated emissions of CO2. As a mandatory legislation, eligible

businesses have to comply with ESOS and many thousands have reaped the benefits of Phase 1, having saved substantial amounts on their energy bills over the last few years. Phase 2 has launched, and businesses are being urged to take action now to ensure

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