Various energy conservation measures are taken in the United Kingdom.

Much of the emphasis in energy debates tends to focus on the supply side of the issue, and ignore the demand. A number of commentators are concerned that this is being largely overlooked, partly due to the strength of the energy industry lobby. Energy conservation also has great potential, and may be able to significantly cut the size of the supposed energy gap, if early and concerted action is taken.

Energy conservation in the United Kingdom

General

The UK Government cut subsidies on a range of renewable energy systems and energy efficient cars in 2015. There were fears this could make reaching targets for reducing carbon emissions unreachable.

Energy conservation in the United Kingdom

Housing

Along with road transport, domestic housing and energy use is currently one of the major obstacles to achieving carbon reduction targets. According to a report from 2008, housing accounts for 27% of carbon dioxide emissions in the United Kingdom. Action is being taken on new buildings through 2006 changes to the Building Regulations, and on existing housing through the Carbon Emission Reduction Target. The Government is introducing The Green Deal. It proposes tying low interest loans for energy efficiency improvements to the energy bills of the properties the upgrades are performed on. These debts would then be passed onto new occupiers when they take over the payment of the bills. It is proposed that the costs of the loan repayments would be less than the savings on the bills from the upgrades, however this will be a guideline and not legally enforceable guarantee. It is believed that energy bills like housing a cost people always meet those giving investors a secure return.

Energy conservation in the United Kingdom

Domestic appliances

In the housing sector, consumer electronics and IT products are an area where energy use is expected to continue to rise rapidly. In the decade from the mid-1990s to the mid-2000s electricity consumed by such goods rose by 47%. By the early 2010s it is expected to have risen again by over 80%. It was estimated that, in 2004, at least 8% of domestic electricity was used by items in standby mode, representing 360 kWh and 42 kg of carbon emissions for each household.

Consumption of electricity by all domestic appliances (including cooking and lighting) rise by 123% between 1970 and 2003, and by 223% when cooking and lighting are excluded.

Non domestic energy use

The Energy Savings Opportunity Scheme (ESOS) requires all large businesses in the UK to undertake mandatory assessments looking at energy use and energy efficiency opportunities at least once every four years. The deadline for the first compliance period is 5 December 2015. The ESOS Regulations 2014 bring into force Article 8 of the EU Energy Efficiency Directive. The aim of ESOS is for large businesses to identify energy savings opportunities by compelling them by legislation to conduct energy audits. The audit has to account for 90% of their energy consumption and the opportunities identified do not have to be implemented. The scheme is regulated by the UK Environment Agency who have said that they are taking a light touch to this piece of legislation, however failure to conduct an ESOS audit could see companies liable for fines of up to £50,000.

The compliance date for the first phase was 5 December 2015, and all required participants (those companies with over 250 employees or a turnover of 50m Euros and a balance sheet of 43m Euros) were required to have completed an energy audit by an appointed lead assessor by this date. The compliance for the second phase of the scheme was 5 December 2019 and the qualification requirements remained unchanged from the first phase.

The Streamlined Energy and Carbon Reporting scheme (SECR) is a mandatory reporting framework newly applicable to both quoted and large unquoted companies in the UK (those companies with turnover (or gross income) of £36 million or more, balance sheet assets of £18 million or more, or 250 employees or more). Under changes introduced by the 2013 and 2018 Regulations, quoted companies of any size that are required to prepare a Directors’ Report under Part 15 of the Companies Act 2006, are required to disclose information relating to their energy use and GHG emissions. As of April 2020, qualifying companies must publicly disclose their total annual energy consumption, broken down by source, and the associated greenhouse gas emissions arising from the usage of each fuel type. This needs to be disclosed at the end of the financial year from April 2020 onwards. This report is incorporated within the company’s official accounts.