Unlike climate change mitigation and renewable energy deployment, there were no binding targets on Member States for energy efficiency in the EU’s Climate and Energy policy framework to 2020. The Commission believed that this was unsatisfactory and proposed ‘binding measures’ on Member States in order to encourage 20% efficiency savings by 2020. A political agreement on the draft Energy Efficiency Directive between the European Parliament and the Council was reached on 13 June 2012.

A political agreement on the draft Energy Efficiency Directive between the European Parliament and the Council was reached on 13 June 2012. The Directive has significant implications for businesses who are either engaged in the supply or consumption of energy.

On 22 June 2011, the European Commission proposed a new Directive to step up Member States efforts to use energy more efficiently at all stages of the energy chain – from the transformation of energy and its distribution to its final consumption. IBEC engaged the Commission, MEPs and the DCENR throughout this legislative proposal. A political agreement on the draft Energy Efficiency Directive between the European Parliament and the Council was reached on 13 June 2012. 

The Irish Government has already committed to reaching energy efficiency savings of 20% by 2020 under our National Energy Efficiency Action Plan (NEEAP), and energy suppliers will play a key role in meeting this goal.

The new EU legislative proposal addresses efficiency targets, efficiency in energy use (public bodies, obligation schemes, audits, billing) and measures to promote the energy services market. In particular the new measure places an obligation on energy distributors and retailers to achieve energy savings of 1.5% of energy sales to final consumers each year.

The main provisions of the directive include:

• Setting indicative national energy efficiency targets for 2020 (article 3);

• 3% renovation rate of buildings owned and occupied by central government (article 4);

• Purchase of high energy efficiency products, services and buildings by central governments (article 5);

• Energy efficiency obligation schemes – equivalent to 1.5% of energy sales to final customers each year (article 6);

• Energy audits and energy management systems (article 7);

• Metering and informative billing for consumers (article 8);

• Qualification, accreditation and certification schemes for energy service providers (article 13);
• Promotion of energy services market and access for SMEs (article 14).