How to Prevent EU Energy Efficiency Fines

by | Jul 24, 2018

Over 45,000 large companies could face EU energy efficiency fines if they fail to conduct an energy audit and comply with reporting rules by 5th December 2019. This article aims to answers all your EU energy efficiency frequently asked questions to help your business make the relevant provisions.

EU member states are required to have publicly-available, documents rules and systems on the allocation of cooling, heating and hot water consumption.

How much are the EU energy efficiency fines?

Companies could face fines of up to £890,000 if they fail to comply with new EU energy efficiency requirements.

Which companies are affected?

All large organisations must conduct energy audits. These include companies with:

  • at least 250 employees
  • annual revenues of more than £44 million

What about organisations that span the EU?

Companies with multiple operations across the EU must meet the requirements in each member state. All 28 countries have unique audit requirements, so each business location must meet the specific requirements of that particular country.

What is the European Energy Efficiency Directive?

The EU has set a 20% energy efficiency target by 2020. Set in 2012, the EU established the Energy Efficiency Directive to help the EU reach this goal. An update to the Directive in 2016 saw a new energy efficiency target of 32.5% being set for 2030.

Under the Directive, all EU countries are required to use energy more efficiently, all the way from production to consumption.

Why the new energy efficiency target?

  • Boost industrial competitiveness
  • Create jobs
  • Reduce energy bills
  • Tackle energy poverty
  • Improve air quality
  • Cut climate-harming emissions
  • Protect citizens from climate change

What specific policies and measures does the Directive include?

Here are some examples of energy-saving measures that apply to UK companies:

  • Energy distributors and retail energy sales companies have to implement energy efficiency measures to achieve 1.5% energy savings per year.
  • Savings can be achieved through improving the efficiency of heating systems, installing double glazed windows, insulating roofs and more.
  • Purchasing energy efficient buildings, products and services.
  • Large companies need to audit their energy consumption every four years to help them identify ways to become more energy efficient – the next deadline on 5th December 2019.

When was the last energy audit date?

The previous energy audit compliance date was in 2015. At this time, thousands of companies failed to submit the required evidence and documentation. Now, large companies are being urged to plan ahead to ensure that the 2019 deadline is met.

Energy Audits from Smarter Business

Companies that need to complete an energy audit by December can take the hassle and headache out of the process by outsourcing to an expert energy broker. Smarter Business can conduct an energy audit and document your energy-saving initiatives, ensuring that your business is prepared and avoids any EU energy efficiency fines come December 2019.

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