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PRACTICE NOTES
The Energy Savings Opportunity Scheme (ESOS) ESOS is an energy assessment and energy savings scheme. It is mandatory for organisations that meet the qualification criteria. It derives from the EU Energy Efficiency Directive 2012/27/EU, art 8(4)–(6), which requires EU Member States to ensure that enterprises that are not small and medium-sized enterprises (SMEs) are subject to an energy audit carried out at least every four years. For more information, see Practice Note: Energy Efficiency Directive 2012/27/EU—snapshot [Archived]. The requirements of the Energy Efficiency Directive, art 8(4)–(6) have been implemented in the UK through the Energy Savings Opportunity Scheme Regulations 2014, SI 2014/1643 (ESOS Regulations). The Energy Act 2023 has granted powers to make necessary changes to ESOS post-Brexit, and the Energy Savings Opportunity Scheme (Amendment) Regulations 2023, SI 2023/1182 have made changes in advance of the Phase 3 compliance deadline. Substantive changes have also been made by the Energy Savings Opportunity Scheme (Amendment) Regulations 2026, SI 2026/701. Organisations that qualify must undertake an energy assessment and audit of their total energy consumption.
PRACTICE NOTES
The Energy Savings Opportunity Scheme (ESOS) ESOS is an energy assessment and energy savings scheme. It is mandatory for organisations that meet the qualification criteria. It derives from the EU Energy Efficiency Directive 2012/27/EU, art 8(4)–(6), which requires EU Member States to ensure that enterprises that are not small and medium-sized enterprises (SMEs) are subject to an energy audit carried out at least every four years. For more information, see Practice Note: Energy Efficiency Directive 2012/27/EU—snapshot [Archived]. The requirements of the Energy Efficiency Directive, art 8(4)–(6) were implemented in the UK through the Energy Savings Opportunity Scheme Regulations 2014 (ESOS Regulations), SI 2014/1643. The Energy Act 2023 has granted powers to make necessary changes to ESOS post-Brexit, and the Energy Savings Opportunity Scheme (Amendment) Regulations 2023, SI 2023/1182 have made changes in advance of the Phase 3 compliance deadline. Additional substantive amendments to the scheme have been made by the Energy Savings Opportunity Scheme (Amendment) Regulations 2026, SI 2026/701. Organisations that qualify must undertake an energy assessment and audit of their total energy consumption.
NEWS
Secretary of State for Energy Security and Net Zero, Ed Miliband, met with the President for COP 26, Rt Hon Sir Alok Sharma, COP29 President Designate, HE Mukhtar Babaye and National Secretary for Climate Change from Brazil as COP 30 Presidency, HE Ana Toni, to discuss the urgency around the climate crisis.
NEWS
The Secretary of State for Energy Security and Net Zero, Ed Miliband, has outlined several key commitments to the Environmental Audit Committee (EAC), aimed at achieving the government's net zero targets. These commitments include ensuring that any airport expansion aligns with the Climate Change Act (CCA 2008) and is consistent with Carbon Budgets, facilitating a ‘central role’ for the EAC’s scrutiny of the Seventh Carbon Budget, and requiring ministers to submit annual parliamentary statements on the government’s assessment of the state of climate and nature. The government also pledged to introduce secondary legislation to incorporate the UK’s contribution to international aviation and shipping emissions within the scope of the Sixth Carbon Budget and to conduct a review of the UK’s current National Adaptation Programme.
PRACTICE NOTES
What is an Energy Services Company (ESCo)? 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. This Practice Note focuses on ESCos involved in the production and supply of energy (specifically heat as steam or hot water) rather than energy efficiency projects, and uses 'ESCo' accordingly. An ESCo of this type will typically feature co-generation of heat and electricity in a combined heat and power (CHP) plant; there are several variants on this including the combined cooling, heat and power plant (CCHP)—where absorption chillers use some of the heat provided by the CHP plant to produce chilled water for air conditioning or refrigeration; and quadgeneration—which involves carbon-capture technologies. This Practice Note refers to ‘CHP’ for ease but, in practice, many of the issues are the same. For
NEWS
Energy Traders Europe has published a joint industry reaction and recommendations paper calling for a three-year postponement of key import obligations under Chapter V of Regulation (EU) 2024/1787 (EU Methane Regulation (EUMR)), particularly Articles 28(1), 28(2) and 29(1), ahead of the main import obligations taking effect from 1 January 2027. The paper asserts that the European Commission's non-binding recommendations on penalties and voluntary compliance approaches do not close the underlying implementation gap and that only a binding EU-level legal measure can provide the legal certainty and harmonisation across Member States required for compliance to be achievable in practice. The paper states that importers are not seeking weaker obligations or reduced penalties, but the time and tools needed to make compliance genuinely achievable. Key concerns include incomplete accreditation, verification and certification frameworks and the absence of a comprehensive Commission assessment of the feasibility and impact of implementation on energy security, competitiveness and supply diversification. The paper also cautions that inconsistent application of non-binding recommendations across Member States could fragment the single market. It further cautions that commercial decisions shaping Europe's 2027 energy supply are being made now and that, by the time consequences become visible in European markets, contracts may already have been concluded and volumes committed elsewhere.
GLOSSARY
The buying and selling of energy to take advantage of the fluctuations in the energy market.
PRACTICE NOTES
What is Euratom? The Euratom Treaty was signed in 1957 by six founding States (Belgium, France, Germany, Italy, Luxembourg and the Netherlands). Since 1957, every state acceding to what is now known as the EU, has automatically become a member of the Euratom Community, whether or not the state concerned has any nuclear facilities within its territory. The main objective of the Euratom Treaty is to contribute to the formation and development of Europe’s nuclear industry and to ensure security of supply of ores, source materials and special fissile materials within the Euratom Community. What are the Euratom Treaty’s key provisions? In order to achieve its overall objective, the Euratom Treaty places a number of obligations on the Euratom Community relating to: • the promotion of research and the dissemination of technical information • the establishment and application of uniform safety standard to protect the health of workers and of the general public • the facilitation of investment and ensuring the establishment of the basic installations necessary for the development
PRACTICE NOTES
Introduction This Practice Note provides a brief analysis of the consequences of publications and announcements made in relation to Brexit on the UK oil and gas industry, as well as the implications for industry following IP completion day (31 January 2020). On 23 January 2020, the European Union (Withdrawal Agreement) Act 2020 (EU(WA)A 2020) was adopted enabling the government to ratify the Withdrawal Agreement and implement its provisions into UK law. As a result of EU(WA)A 2020 the UK remained legally bound by EU law during the transition/implementation period agreed in the Withdrawal Agreement. 11 pm (GMT) on 31 December 2020 marked the end of this Brexit transition/implementation period. At this point in time (referred to in UK law as ‘IP completion day’), key transitional arrangements came to an end and significant changes began to take effect across the UK’s legal regime. On 24 December 2020, the European Commission and UK government announced an agreement in principle on the legal terms of the future UK-EU relationship. Announced just one week before IP completion day, the EU-UK
PRACTICE NOTES
Introduction This Practice Note provides an overview of the key areas where Brexit will have an identified and direct legal impact on the Great Britain (GB) renewables sector. On 23 January 2020, the European Union (Withdrawal Agreement) Act 2020 (EU(WA)A 2020) was adopted enabling the government to ratify the Withdrawal Agreement and implement its provisions into UK law. As a result of EU(WA)A 2020 the UK remained legally bound by EU law during the transition period agreed in the Withdrawal Agreement. 11 pm (GMT) on 31 December 2020 marked the end of this Brexit transition period. At this point in time (referred to in UK law as ‘IP completion day’), key transitional arrangements came to an end and significant changes began to take effect across the UK’s legal regime. On 24 December 2020, the European Commission and UK government announced an agreement in principle on the legal terms of the future UK-EU relationship. Announced just one week before IP completion day, the EU-UK Trade and Co-operation Agreement (TCA), together with associated agreements
PRACTICE NOTES
This Practice Note provides an overview of the impact of Brexit on the EU internal energy market and for international electricity and gas interconnection regulation and trade between the UK and European Union. For more information on how the EU internal energy market works, see Practice Notes: • EU electricity system—wholesale markets • EU electricity system—structure and legal framework How did Brexit impact domestic law in the UK? This section explains the broader impact of Brexit on the treatment of EU law in the UK after its withdrawal from the EU. These concepts impact the post-Brexit relationship between the UK and the EU internal electricity market, as well as international electricity and gas interconnection regulation and trade between the UK and EU. UK-EU agreements On 23 January 2020, the European Union (Withdrawal Agreement) Act 2020 (EU(WA)A 2020) was adopted enabling the government to ratify the Withdrawal Agreement and implement its provisions into UK law. As a result of EU(WA)A 2020 the UK remained legally bound
PRACTICE NOTES
Introduction This Practice Note provides quick links to our Planning content of relevant to different types of renewable energy and storage projects located in England and Wales. It is collated by project/technology type, giving an at a glance route into our Planning practical guidance of relevance to the type of project you are working