Definition

Although the term of "energy services" may sound too broad and vague when first heard, thanks to Act 406/2000 Coll. on energy management, its meaning is precisely defined in the Czech legal environment:

These are all activities designed to make energy consumption savings, inter alia by installing energy efficient technologies, i.e. verifiable and measurable increase energy efficiency.

All over the World it´s named Energy Performance Contracting (EPC).

Legislation

The EPC method is legally defined in the Czech Republic by Act No. 406/2000 Coll. on energy management. It also includes definitions of key concepts:

Energy service (note: with a guaranteed result) means activities the purpose of which is to provide a verifiable and measurable or computerised increase in energy efficiency or to save energy consumption by means of energy efficient technologies or by operating activity, maintenance or inspection.

The Agreement on Energy Services means a contractual arrangement between the beneficiary and the energy service provider on energy efficiency improvement measures verified and checked throughout the duration of a contractual obligation where the cost of this measure is paid in relation to a contractually determined rate of increase in energy use efficiency or another agreed energy efficiency criterion, for example financial savings.

Energy Services Company means an individual or legal person supplying energy services or other measures to increase the energy efficiency of end-user equipment or within their building.

Act No. 406/2000 also regulates the standard contract requirements for energy services and certifications. When using energy services from the contracting authority, it’s necessary to strictly adhere to Act No. 134/2016 Coll. on Public Procurement, which defines the tender procedure and methodology in the provision of energy services.

Benefits

Do you know that thanks to the EPC you can

  • invest in modernising and renovating the energy economy without having to spend money beyond your current budget?
  • save considerable operating costs?
  • reduce final energy consumption considerably?

Each EPC project is a combination of a set of investment energy-saving measures and energy management.

It’s always designed in a way that allows the customer to pay all the investments and other related costs in a period known in advanced from the savings generated by the project. The amount of savings is guaranteed by contract and is demonstrable through the use of energy management.

The standard is the delivery of investment saving measures on instalments. In this case, the customer is provided with a guarantee that the interim instalments will not be higher than the ongoing savings.

EPC has a number of other benefits:

  • The design, preparation, projecting, implementation and putting saving measures into operation is dealt with by one supplier who takes over most of the financial and technical risks
  • The project reduces the demands for service of energy systems and building technology equipment
  • The project contributes to environmental protection

Typical clients of energy services with a guarantee are state institutions and organisations, regions, cities, towns and municipalities and their contributory organisations, as well as industrial enterprises.

Examples of use in practice

Metoda EPC je v České republice využívána již více než 20 let. Za tu dobu bylo realizováno právě 220 EPC projektů, které ušetřily téměř 3,3 mld korun na energiích. Seznamte se s těmi nejúspěšnějšími:

For whom they are suitable

Energy Performance Contracting (EPC) are not universally usable for the reconstruction of energy facilities in any kind of building. In general, an appropriate potential for future savings arises in building where annual energy consumption exceeds 4 000 EUR.

  • The simple return on investment in the energy efficient equipment should be between the sum of the annual savings of energy costs (electricity, gas, water and others) in 8-12 years.
  • Investments in upgrading = energy savings in 8-12 years = difference between today's and future reduced consumption x 8-12.

Who to contact?

In the Czech Republic there are 10 companies actively providing energy services with a guaranteed result and two dozen companies offer specialised consultancy services. Meet the most important players in the EPC market

The European Code of Conduct for EPC

It’s a set of values and principles that are considered essential for the successful implementation of EPC projects in European countries. It was created in order to represent the EPC as a reliable business model involving the provision of energy services

The Code is a voluntary commitment and is not legally binding.

Currently, the document has been signed by more than 260 entities from all over Europe, 65% of APES members are signed under the Ethic Code in the Czech Republic.

Principles

The European Code of Conduct for EPC contains 9 main principles for the implementation of EPC projects:

  1. The EPC provider delivers cost-effective savings.
  2. The EPC provider takes risks of achieving the results
  3. The EPC provider guarantees savings and these are determined by measurement and verification
  4. The EPC provider supports long-term use of energy management
  5. The relationship between the EPC provider and the client is long-lasting, honest and transparent
  6. All steps during the EPC project are carried out in accordance with the law and business ethics.
  7. The EPC provider helps the client to secure the financing for EPC projects
  8. The EPC provider provides qualified personnel for the EPC project implementation
  9. The EPC provider focuses on high quality and care in all steps of the project implementation

How to use The European Code of Conduct for EPC

  1. EPC Quality Indicator. Clients will learn what principles they should stick to for achieving the expected energy savings and the associated benefits.
  2. A marketing tool for communicating that the EPC is a serious and fair model
  3. Inspiration for contract models

Full text of The Code you cann find here.

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