Glossary of Essential Energy Legislation Terms
Navigating the world of energy management is complex. This article simplifies key regulatory terms, providing you with the essential vocabulary that you need.
Mandatory Reporting & Audit Frameworks
ESOS
Energy Saving Opportunity Scheme
ESOS is a mandatory energy assessment programme developed by the UK Government, intended for large businesses. Businesses are required to conduct audits every four years, which identify energy-saving measures that are cost-effective, and then must be submitted to the Environmental Agency.
SECR
Streamlined Energy & Carbon Reporting
SECR is a mandatory program that requires large businesses to report their energy usage and greenhouse gas emissions in an annual report, alongside their end of year accounts, which are submitted to Companies House. Businesses are required to meet certain criteria depending on their size.
CRC
Carbon Reduction Commitment Energy Efficiency Scheme
The CRC scheme has now been closed, running from 2010-2019. This program, run by the UK Government, required large businesses to reduce their carbon dioxide emissions through energy efficiency. It was closed after new reforms to tax and business energy regulation were introduced.
CSRD
Corporate Sustainability Reporting Directive
CSRD is a mandatory EU regulation that significantly expands the scope and detail of sustainability reporting, affecting many UK firms with large EU operations. Businesses must publish detailed information on their environmental, social and governance impacts, with the aim of preventing greenwashing and improving corporate accountability.
Building & Efficiency Standards
MEES
Minimum Energy Efficiency Standards
MEES is a UK regulation that requires privately owned property to meet minimum energy performance levels, making it unlawful to let out a property, residential or commercial, with an Energy Performance Certificate (EPC) rating below a certain threshold. The current threshold is an EPC rating of ‘E’, however this is likely to move to ‘B’ by 2030.
CHPQA
Combined Heat and Power Quality Assurance
The CHPQA Programme, run by the UK Government, evaluates the quality and efficiency of Combined Heat and Power (CHP) schemes. The aim is to ensure that organisations operate efficiently and meet high environmental standards.
It is a voluntary scheme for businesses to join.
EPC
Energy Performance Certificate
An EPC is a document that rates a property’s theoretical energy efficiency. It scores buildings from A-G, with A being the most efficient. EPCs are required for any building that is sold, rented or built, and looks at areas such as energy usage and CO2 emissions, and include suggestions for improvements.
EPCs are required every 10 years or when a building is being sold.
DEC
Display Energy Certificate
DEC is a document that rates public property’s actual energy efficiency. Like an EPC, it rates buildings from A-G, with A being the most efficient. These documents consider the previous 12 months of metered energy usage to identify energy-saving recommendations. They must be displayed publicly, paired with an advisory report.
DECs are required annually.
Financial & Tax Legislation
CCL
Climate Change Levy (CCL)
The CCL is a UK environmental tax made on energy used by business. Businesses that operate and participate in the CHPQA Programme can gain exemption from the tax. The tax aims to encourage businesses to reduce carbon emissions and become more energy efficient.
CCA
Climate Change Agreements
CCAs are voluntary contractual agreements made between UK energy-intensive organisations and the Environmental Agency to reduce energy usage and carbon dioxide emissions. By committing to reducing energy usage, businesses benefit from reductions in the Climate Change Levy and tax on energy bills.
CCAs are required bi-annually.
Technical Compliance & Methodology
MCPD
Medium Combustion Plant Directive
The MCPD regulations, enforced by the UK Government and the EU, control pollutant emissions from the combustion of fuels in plant with a rated thermal input of between 1MW-50MW. Businesses require permits and monitoring to improve air quality.
MCPD deadlines vary depending on organisation size and age of plant.
CHP Meter Verification
Combined Heat and Power
Combined Heat and Power (CHP) simultaneously generate electricity and heat from a single fuel source, such as natural gas. CHP meters need to be regularly verified to maintain registration under the CHPQA Programme.
BEA
Building Energy Audit
A BEA is a comprehensive evaluation of a building’s energy consumption, which examines factors such as heating, ventilation, air conditioning, lighting and insulation. The goal is to pinpoint areas of waste and opportunities for greater energy efficiency, leading to cost reductions and lower carbon emissions.
These audits provide an evidence-based plan for performing low-cost upgrades.
BECI
Building Energy Cost Indicator
The BECI is a tool that evaluates the carbon emissions and operational cost of building appliances. It uses a traffic light colour coding system to portray energy expense and efficiency levels. This tool is designed to compare performance and pinpoint potential savings.
KEP
Kitchen Energy Plan
A KEP is a focused strategy for commercial catering; designed to manage, identify, and lower energy usage. The plan targets the most energy-intensive appliances for cost reduction, often achieved by optimising how equipment is used, including implementing specific start-up procedures, ensuring units are switched off when not in use, and potentially upgrading to more energy-efficient technology to reduce overall operational expenses.
Regulators
Ofgem
Office of Gas and Electricity Markets
Ofgem is the government regulatory authority for the UK’s energy markets. Its purpose is to safeguard consumer interests through the regulation of gas and electricity providers. This includes establishing price limits, encouraging a competitive market and working towards a sustainable, net-zero energy infrastructure.
GHG Protocol
The Greenhouse Gas Protocol
The GHG Protocol is a global standard for companies, created by the World Resources Institute and the World Business Council for Sustainable Development. The standard is intended for cities and governments across the world to manage, measure and report their greenhouse gas emissions. The aim of this is to achieve climate goals.
Although is not law, it is the “global accounting rulebook.” Almost all mandatory legislation (like SECR or CSRD) requires companies to calculate their footprint using the GHG Protocol standards. It is the framework that defines Scopes 1, 2, and 3.
The energy landscape is moving faster than ever, and while new legislation can feel confusing, it serves as a roadmap for the future of sustainable business. If you need help with your energy management, contact us today by calling 01293-521350 or emailing info@2ea.co.uk.
