In 2021, the Energy Efficiency Obligation Scheme (EEO) will be introduced. The scheme, which has already been successfully implemented in several Member States across Europe, requires obligated parties to introduce programmes and implement measures that result in verified energy savings for the end-user. In the EQS, the Obligated Obligors are:
- Electricity traders
- Electricity universal service providers
- Natural gas distributors
- Universal service providers of natural gas
- Suppliers of transport fuels to final customers
Obligated parties must achieve energy savings for final customers, such as companies, equal to a given percentage of the energy sold per year. If they do not comply with this obligation, they have the possibility to pay an energy efficiency levy of 50 000 HUF/GJ or, in case of default, a fine of 70 000 HUF/GJ.
The obligated party, for example an energy trader, is looking to reduce its costs, so as long as it can encourage/support/finance energy efficiency measures below 50 000 HUF/GJ, it has a vested interest.
This can therefore be an excellent source-side support for practically EVERYBODY, whether industrial or residential, as there is still significant potential for energy savings in all sectors.
Virtually all energy efficiency measures are eligible under the ERA, including savings from building energy and technology upgrades, as well as reductions in fuel use for transport. MEKH has developed a (continuously updated) list of the most common energy efficiency improvement measures that can be standardised to facilitate the accounting of these measures, but individual audits can also be prepared to calculate and verify energy savings beyond the standard measures. If the energy savings are verified (by an energy auditing organisation) and a certified energy saving (CER) is generated, this CER can be transferred and sold under a bilateral agreement or on an organised market. The certified energy savings are a limited marketable asset that can only be transferred to the obligated party, thereby indirectly subsidising the investments that result in energy savings.
The sale of a HEM can provide significant financial support for energy efficiency investments, financing a wide range of 10-100% of the total investment cost. This should be considered on a case-by-case basis for each investment. In "extreme" cases, for example in the residential segment (if certain conditions are met), loft insulation can be provided virtually free of charge, with the value of the HEM achieved covering investment, construction and other associated costs.
It is important to note that there are a number of specific conditions in the EIF, such as the concept of early replacement in the case of technology, building services or household equipment, or the fact that if other policy support is used in the implementation, the amount of the contribution will reduce the amount of savings eligible for the EIF, so it is always advisable to involve a professional when determining the eligible energy savings.
Our company has more than ten years of experience in energy savings calculations, energy loss audits and is qualified as an energy auditor for the ERA.