The following Energy practice note Produced in partnership with Stephen Cirell of Stephen Cirell Consultancy Ltd provides comprehensive and up to date legal information covering:
There is no single definition of what an ESCo is, and ESCo has no special legal meaning. The term has been used to describe businesses engaged in the generation, distribution and/or supply of energy to end customers, as well as those engaged in demand management, green retrofitting and other energy efficiency measures.
An ESCo can take many forms, from a single function body that looks after a heat network, to a fully licenced energy services company that is authorised by the Electricity Act 1989 (EA 1989) and/or Gas Act 1986 to sell electricity or gas on a retail basis to domestic customers (see Practice Note: An Introduction to Electricity Licensing in Great Britain). So it is essential to properly define the use of the term at all times.
We set out below some of the alternative structures that are used to establish an ESCo and the purpose for which ESCos are used:
an ESCo can be private sector or public sector, but in the context of this Practice Note it is civic ESCos that are under consideration
an ESCo can be a joint venture between one or more public bodies, or a joint venture between a local authority and a private sector company
an ESCo can be a corporate body, but does not need
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