Efficiency rules could save energy equivalent of 22 power plants by 2020, Davey claims

Energy secretary Ed Davey has urged business to act on new energy efficiency regulation, saying the new Energy Saving Opportunity Scheme (ESOS) could save UK business as much as £250 million per year and the energy equivalent of 22 new power stations by 2020.

The ESOS regulation will come into effect from next month, requiring all UK businesses with 250 employees or more to undergo an efficiency assessment from a certified assessor by December next year.

Although the assessment is mandatory and must take place every four years, acting on its findings are completely voluntary.

On the sidelines of an energy efficiency conference on Wednesday Davey told reporters that he did not believe the regulation needed to be mandatory to be taken up by business, because the benefits in terms of savings are clear and could offer a “big win”.

“It’s much better to let business make the decision about how they implement the results of their audit rather try to prescribe it from central government,” he added.

Davey told Utility Week that one of the frustrations he has faced in coalition government is the unwillingness of some Conservative party colleagues to regulate energy efficiency.

“[Regulation] can be the most cost effective way of getting energy savings, helping people cut their bills and also getting carbon savings. We need to rehabilitate the word ‘regulation’ in our discourse over energy efficiency in particular,” he said.

Later, Davey addressed conference delegates saying energy use in non-domestic buildings makes up 18 per cent of the UK’s total use, meaning business energy efficiency has a key role to play in addressing the energy trilemma.

“Business energy efficiency offers improved energy security for the country, improved competitiveness for businesses, and lower carbon emissions for the planet,” he said.