Presentation in the Knowledge, Skills and Experience Theatre at EMEX, The Energy Management Exhibition on 23 November 2017

1. How to mitigate risk due to the
upcoming legislative changes
Gabriel Hurtado Gonzalez MEng MIET
Chartered Energy Manager

2. Summary
Energy Savings Opportunity Scheme (ESOS) Phase 2Energy
Minimum Energy Efficiency Standards
Heat Network Regulations
Water Market Deregulation 2017
Climate Change Levy (CCL) Increases from 2019

3. Energy Savings Opportunity Scheme (ESOS) Phase 2
• 2,800 organisations had to send notifications advising that they would be late.
• Only 16% of participants were fully compliant in Phase 1.
• 300 enforcement notifications have been sent out to date, with more to come.

4. Minimum Energy Efficiency Standards
• For both lease renewals and new leases from the 1st of April, 2018 and all existing
rented properties from 1st of April, 2023.
• The minimum energy efficiency standard will be set at an “E” EPC rating.
• Exclusions: Any property which is let on a tenancy which is granted for a term of 6
months or less.

5. Heat Network Regulations
• Landlords are now required to give tenants actual information based on their real
gas consumption.
• Both communal heating and district heat networks are subject to the Heat Network
Regulations.
• All the multi-tenanted commercialbuildings will be included

6. Water Market Deregulation 2017
• The water market in England was deregulated in April, this year. About 1.2 million
customersare able to pick and choose each retail provider.
• Licensed Providers (retailers) will bundle this with their own services and value-
added offerings, and sell their “packages” on to England’s businesses.
• Prices will be reviewed in 2019.

7. Climate Change Levy (CCL) Increases from 2019
• According to HM Revenue & Customs, the lost Revenue from the abolishment of CRC
in 2019 will be recouped by the Government through a 50%-75% increase in the
Climate Change Levy (CCL), which equates to £0.00847 per kWh in 2019.
• This scheme will affect all UK public and private organisations alike.

8. Conclusion
• The earlier the opportunities are identified, the sooner energy saving projects can
be implemented
• Early action can help unlock the financial savings brought by greater energy
efficiency.
• Act now in order to understand the implications and to put in place strategies and
actions to mitigate the risks they may pose.

9. Questions