As the new year comes, so do new regulations for 2019. Compliance is a critical part of succeeding in the energy business, and knowing what to expect when it comes to changes in relevant regulations can make all the difference for both your company and your clients. Here are several new mandatory compliance regulations that are set to hit the industry this coming year in the United Kingdom and a peek into how you can be prepared to meet changing expectations. They may not be currently scheduled for the United States, but with most legislation eventually coming to the U,S. from overseas, now is a great time to watch the new legislation and learn how it will affect your company.

Phase 2 of the Energy Savings Opportunity Scheme Deadline

The end of this year will likely see a rush of companies seeking to incorporate best practices in line with the deadline for Phase 2 of the Energy Savings Opportunity Scheme (ESOS) on Dec. 5, 2019. UK organizations were required to submit information for Phase 1 of ESOS by 29 January 2016. The regulations require large UK organizations to take three important steps before the compliance date of 5 December 2019. Those three steps are:

  • Measure total energy consumption for buildings, industrial processes, and transport
  • Conduct audits to identify cost-effective energy efficiency recommendations for areas of significant energy consumption; and
  • Report compliance to their national scheme administrator – the Environment Agency in England, SEPA in Scotland, NIEA in Northern Ireland and NRW in Wales.

Carbon Reduction Commitment Allowances

In October 2019, the final Carbon Reduction Commitment allowances will be surrendered, three years on from the announcement of its closure. Building on the same framework, streamlined energy and carbon reporting regulations (SECR) will replace CRC in 2019 affecting around 12,000 companies in the UK, 8,000 more than were required to comply with CRC. The CRC Energy Efficiency Scheme is a mandatory carbon emissions reduction scheme in the United Kingdom that applies to large energy-intensive organizations in both the public and private sectors.

Minimum Energy Efficiency Standard

As the first anniversary of minimum energy efficiency standard (MEES) comes around in April 2019, the requirement for energy performance certificates (EPC) for all non-exempt sold or leased commercial buildings is likely to become a more prominent issue throughout 2019. The Minimum Energy Efficiency Standard (MEES) which came into force in England and Wales on back in April 2018, applies to private rented residential and non-domestic property and is aimed at encouraging landlords and property owners to improve the energy efficiency of their properties by a restriction on the granting and continuation of existing tenancies where the property has an Energy Performance Certificate Rating of F and G. The Minimum Energy Efficiency Standard Rating is E and above. While increased energy efficiency is sure to be a boon for the industry at large, it does raise some interesting compliance challenges that many companies are still struggling to incorporate into their day to day processes.

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