ISO 14001: Energy and Legal Compliance

This blog will focus on some key energy relevant legislation that will also be relevant to anyone wishing to achieve and maintain certification to ISO 14001:2015.

The legislation listed below may not be relevant to every business but, at the very least, you will need to show why it is not relevant to you and this requires understanding the potential compliance obligations. It may be as simple as to check if you are compliant with certain criteria like the employee number or turnover. However, in relation to air-conditioning, it can require calculations of CO2e levels or total KW outputs of multiple units and this is not always simple to assess.

The Legislation

The Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2012 (last updated 2014)

As most environmental managers are aware, air conditioning systems need to comply with two different pieces of legislation:

Firstly, systems with a cooling capacity of over 12kW need a 5 yearly, TM44 air conditioning report to satisfy ‘The Energy Performance of Buildings Regulations 2012 (amended 2016)’.

Secondly, under the F:Gas Reg 2015, each air conditioning unit containing over 5 tons of CO2e require annual checks for leakage, with the checks frequency increasing for higher amounts of CO2e.

‘The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015’

The legislation will bring about minimum energy standards for the first time. This means that from the 1st April 2016 tenants can apply for consent to carry out energy efficiency improvements and that buildings with an Energy Performance Certificate (EPC) rating of F or G can no longer be rented or leased. Looking to the future, as of 1st April 2023 this will be extended, and all existing commercial leases will need an EPC rating of E or better (it has been reported that this could affect around 20% of commercial leases). Non-compliance will be linked to rateable value subject to a maximum fine of £150,000.

Climate change levy (CCL) (2015 Amends)

The Climate Change Levy is an environmental tax charged on the energy used by businesses. It’s designed to encourage businesses to be more energy efficient in how they operate, helping to reduce their overall greenhouse emissions.

The CCL applies to businesses in the industrial, public services, commercial and agricultural sectors, and is charged on ‘taxable commodities’ for heating, lighting and power purposes.

CCL is paid at either the main rate or carbon price support (CPS) rate. We’ve highlighted the difference between the main rates and CPS rates below.

Energy Savings Opportunity Scheme (ESOS)

If your organisation qualifies as a ‘large undertaking’ on the qualification date (31st December 2014) you must take part in ESOS.

A ‘large undertaking’ is any UK undertaking that meets at least one of the following criteria:

  • It employs 250 or more people;
  • It has an annual turnover of more than 50 million euros and an annual balance sheet total in excess of 43 million euros.

You must also take part in ESOS if you’re undertaking is part of a corporate group which includes another UK undertaking that meets either of these criteria.

The Heat Network (Metering and Billing) Regulations 2014

When a landlord supplies more than one tenant within the same building, then it’s likely that ‘The Heat Network (Metering and Billing) Regulations 2014’ will affect them. The deadline was on the 31st of December of last year and the landlord would have to notify the National Measurement Office (NMO) of any existing heat networks. The notification includes the estimated capacity of the systems and the kWh of heat, cooling or hot water supplied.

Please make sure you follow the other blogs in the series to find out more about energy and ISO 14001.

Guest Blog by Paul Stevens from AvISO Consultancy – Part of a series by Assent Risk Management and AvISO Consultancy

Dated: 08/10/2018