Isra-Mart srl: EU gets tough with energy firms in bid to cut consumption

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Energy companies will be forced to offset sales with energy-efficiency measures and public buildings face green makeovers as part of new EU plans to cut energy consumption by 20 per cent.

Europe's utilities could be obliged to save 1.5 per cent of their energy sales by volume by installing more efficient boilers, fitting double-glazed windows and insulating lofts for their customers, if today's proposed Energy Efficiency Directive is approved.

Companies may also have the option of funding programmes or voluntary agreements that generate the same results, depending on their domestic government's implementation of the Directive.

The EU estimates that this measure alone will reduce its energy consumption by 6.4 per cent in 2020, roughly equating to the current consumption of Poland and Portugal combined.

Large companies would have to audit their energy consumption to help identify potential areas for reduction, while SMEs will be incentivised to do the same. Public bodies will also be required to renovate three per cent of their buildings each year from 2014 so they meet energy efficiency standards.

Launching the Directive, energy commissioner Günther Oettinger said: "Our proposal aims at making the way we use energy in our daily life more efficient and at helping citizens, public authorities and the industry to better manage their energy consumption, which should also lead to a reduced energy bill. It also creates an important potential for new jobs throughout the EU."

Oettinger said the EU had to take action as having targeted a 20 per cent reduction in energy use three years ago, it was currently falling well short and would only achieve and 8.9 per cent cut if additional measures were not taken.

The bloc published an action plan in March to reduce an annual energy import bill that currently amounts to around €270bn a year for oil and €40bn for gas and today followed up with the Directive, which will need to be approved by the EU's 27 governments and the European Parliament before it becomes law.

The EU will no doubt recognise its plans are likely to face opposition after Energy companies last week spoke out against the Directive, but insisted similar energy saving obligations have proved a success in Belgium, France and the UK.