Select Committee on European Union Fortieth Report


ENERGY END-USE EFFICIENCY AND ENERGY SERVICES (16261/03)

Letter from Elliot Morley MP, Minister of State for Climate Change and Environment, Department for Environment, Food and Rural Affairs to the Chairman

  I previously wrote on 22 December 2005[79] to inform you of the second reading deal on the Energy End Use Efficiency and Energy Services Directive. I am now pleased to be able to write to you after Energy Council formally approved the adoption of the Directive on 15 March. The Directive, as agreed and approved, should be published in the Official Journal at the end of April and sets out the following key provisions:

    —  A general energy end-use savings target of 1% per year for 9 years, covering the period from 2008 until 2017. The overall target of 9% is to be met by the ninth year and will include an intermediate target covering the third year of application of the Directive. An intermediate target will also be set by each Member State for year 3 of application.

    —  Member State public sectors shall fulfil an exemplary role including a number of obligations to contribute to reaching the overall savings target. This includes the application of at least two requirements relating to the mandatory use of public procurement guidelines to purchase energy-efficient equipment, vehicles, buildings and other end uses. Alternatively, they may choose to use energy audits and apply the resulting recommendations or apply financial instruments such as energy performance contracting.

    —  Energy distributors and retail energy sales companies will have to ensure (either directly or indirectly through a third party) that their customers are offered competitively priced energy efficiency improvement measures or services when they are supplied with energy. Alternatively Member States can establish voluntary agreements and/or other market-oriented schemes (such as white certificates) to deliver the same ends.

    —  Actual time of use metering is to be provided for all new connections and for replacement installations subject to assessment of technical and financial feasibility.

    —  Accurate billing information to be provided to all consumers to enable them to make informed choices about their energy usage.

    —  A harmonised methodology for calculating improvements in energy efficiency with indicators and benchmarking between Member States will be developed by the Commission and a committee composed of Member States' experts.

  I believe that the Directive represents an ambitious yet realistic set of measures to increase energy efficiency throughout Europe and is a positive step in developing the EU's long term energy policy. The energy saving measures proposed in the directive. will link in to future work on the Green paper on energy efficiency and subsequent Energy Efficiency Action Plan, that will lay a path for a 20% reduction in energy consumption throughout the EU by 2020.

29 March 2006




79   Correspondence with Ministers, 45th Report of Session 2005-06, HL Paper 243, p 329. Back


 
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