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Hard service compliancy requirements for FMs in 2018

Author : Joe Warren and Alex Hill, ZTP

23 March 2018

Alex Hill
Alex Hill

With a large amount of legislation surrounding utilities it is becoming increasingly difficult to stay compliant and mitigate costs.

As a first step to mitigating the costs, businesses must first be aware of legislation that affects them. These can be historical or future changes.

Water Market deregulation – As of April 1st 2017 customers are free to choose their water provider for retail services in England. Scotland has already been deregulated.

This has given rise to difficulties namely through an incomplete central database and new billing systems from new suppliers. However, there is an opportunity to change water suppliers which should be investigated.

Savings in Scotland have been seen to be upward of 10%. In England this is likely to be lower single figures.

P272 – By 1st April 2017, all “max demand” electric meters (Profiles 05-08) should have been converted to Half Hourly meters. The suppliers were responsible for this, however it is important to check it this has been sorted and you are being billed on actual HH data where applicable.

DCP161 – From 1st April 2018 distribution networks will pass on penalty charges to suppliers who will ultimately charge consumers for those sites exceeding their agreed capacity on Half Hourly meters. FMs should check what capacity has been used historically on their buildings and ensure the level is correct (not too high or low!).

DCP228 – Watering down of RED time band DUoS charging, spreading cost to GREEN and AMBER time bands. If any demand management projects have been set up – the consequence of this change should be reviewed. With no ‘RED’ time bands, with the exception of London, it may no longer prove as cost effective to manage demand at certain times of the day.

Joe Warren
Joe Warren

CRC – Although due to be abolished in 2019 the costs will move directly onto energy bills in the form of a ‘CCL’ charge and reporting will continue to be mandatory.

ESOS (Energy Savings Opportunity Scheme) - As of 2015 companies with 250+ employees OR an annual turnover exceeding £50m AND a balance sheet total exceeding £43m must complete an energy audit incorporating a minimum of 90% total energy use across the business. Assessments must be carried out every four years with the next deadline in December 2019.

Heat Networks - Providers of heating, cooling or hot water to an end customer, including multi- tenanted buildings, should have notified the National Measurement Office and be ready to complete the ‘viability’ tool when ready. FMs should keep an eye out for when the tool is ready and use it to check whether heat meters need to be installed.

BNO (Building Network Operator) - A BNO is a term used to describe an organisation that owns or operates the electricity distribution network within a multi occupancy building between the intake cut out position (first point of isolation) and the customer’s installation.

FMs must ensure that relevant buildings have a ‘BNO’ in place to resolve any issues that may occur – particularly if there is an emergency situation without electricity to a building. Historically the district network operator would have been on hand to help, however now, if the issue is within the building itself, even if that issue is before the fiscal meter – it will most likely be left to the ‘BNO’.

If not successfully identified and managed, the cost of legislation compliance can become overwhelming. Understanding what is needed and ensuring the relevant data is readily available is imperative to ensure any costs are mitigated.

Joe Warren, Alex Hill and Martyn Young aredirectors and co-founders of ZTP, a strategic energy management consultancythat works with businesses and other organisations with multi-site operationsto help them manage their energy and procurement requirementsmore efficiently and cost-effectively.  ZTP’s solutions (includingprocurement, billing management, finance support and reporting, metering anddelivering projects to reduce energy consumption) help to save time and make a positive impact to the bottom line.

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