24
Core Theme Summary Report Core Theme Summary Reports Series July 2011 The role of Auditing, Metering and Billing 4
Core Theme Summary Report
Core Theme Summary Reports SeriesJuly 2011
The role of Auditing, Metering and Billing
4
2 CA ESD Core Theme 4 Summary Report
Contents
1. Abbreviations 3
2. Role of auditing, metering and billing in promoting energy efficiency 4 2.1 The requirements of Art. 12 and 13 ESD 4
3. Energy auditing in Member States 6 3.1 Availability of energy audits in Member States 6
3.2 Financing of energy audits 7
3.3 Energy audits as part of voluntary agreements 8
3.4 Quality of audits 8
3.5 Training of energy auditors 9
3.6 Qualification, accreditation and/or certification schemes 9
3.7 Measuring Energy Savings 9
4. Metering and Billing in Member States 10 4.1 Transposition of Art. 13 10
4.2 Interpretation of Art. 13 11
4.3 Frequent billing of actual consumption 12
4.4 Potential benefits of additional feedback 13
5. Summary 15 5.1 Energy Auditing Programmes in EU Member States 15
5.2 Metering & Billing 16
5.3 Energy Audits in Households 17
5.4 Behavioural Aspects of Metering & Billing 18
5.5 Cost-effectiveness of smart meters 18
6. Concluding remarks 20
CA ESD Core Theme 4 Summary Report 3
1 Abbreviations
Country code Country
AT Austria
BE Belgium
BG Bulgaria
CY Cyprus
CZ Czech Republic
DE Germany
DK Denmark
EE Estonia
EL Greece
ES Spain
FI Finland
FR France
HR Croatia
HU Hungary
IE Ireland
IT Italy
LT Lithuania
LU Luxembourg
LV Latvia
MT Malta
NL Netherlands
NO Norway
PL Poland
PT Portugal
RO Romania
SE Sweden
SI Slovenia
SK Slovakia
UK United Kingdom
Table 1. Country codes Table 2. Miscellaneous abbreviations
Abbreviation Full text
CA ESDConcerted Action for the
Energy Services Directive
EPBDEnergy Performance of
Buildings Directive
ESD Energy Services Directive
EU European Union
MS Member States
QACSQualification, Accreditation
and Certification schemes
WG Working Group
4 CA ESD Core Theme 4 Summary Report
This report summarises the work carried out during the course of the Concerted Action for the Energy Services Directive (CA ESD) on the topic of auditing, metering and billing which are defined in Art. 12 and Art. 13 ESD. Auditing, metering and billing all have one common proposition and that is that only adequate information about energy consumption enables the end-user to reduce energy consumption. This argument applies to the industrial sector and other sectors such as households.
In energy audits a standardised procedure is used to obtain
adequate knowledge of an existing energy consumption
profile and derive corresponding conclusions regarding saving
potentials, whereas the metering of energy consumption
enables the consumers to draw appropriate conclusions
themselves (if the data is communicated to end-users in an
appropriate manner). What is required by the ESD is to measure
actual consumption and provide the end-users with frequent
information about their consumption and thus contribute to
achieving energy savings.
2.1 The requirements of Art. 12 and 13 ESDAccording to Article 12 ESD, Member States (MS) shall ensure
the availability of efficient high-quality energy audit schemes,
which are carried out in an independent manner, to all final
consumers, including smaller domestic, commercial and small
and medium-sized industrial customers. In cases where energy
audits are not commercially available for certain market
segments, MS shall ensure the availability of audits.
According to Art. 13 (1) ESD competitively priced individual
meters must be provided to final customers that accurately
reflect the actual energy consumption and provide information
on actual time of use. Article 13(1) ESD further distinguishes
two different situations:
When an existing meter is replaced, such competitively priced
individual meters shall always be provided, unless it is technically
impossible or not cost-effective in relation to the estimated
potential long-term savings.
When a new connection is made in a new building or a building
undergoes major renovations, such competitively priced
individual meters that accurately reflect the actual energy
consumption and provide information on actual time of use
shall always be provided.
Role of auditing, metering and billing in promoting energy efficiency 2
CA ESD Core Theme 4 Summary Report 5
In Art. 13 (2) the ESD demands that billing shall be “based on
actual energy consumption,” is presented in clear and
understandable terms and shall be “performed frequently
enough to enable customers to regulate their own energy
consumption.” Furthermore, Art. 13 (3) includes specific details
about which information should be made available on the bill.
When referring to the provision of individual meters that reflect
the actual energy consumption and provide information on the
actual time of use in Art. 13 ESD, the Directive is limited to
technically possible and financially reasonable solutions that
are proportionate in relation to the potential energy savings.
This provision bridges the requirements of the ESD with Annex I
of the third internal electricity market directive (2009/72/EC).
The measures on consumer protection in Directives 2009/72/EC
and 2009/73/EC (Art. 3 and Annex 1(1) lit i) are to ensure that
consumers “are properly informed of actual electricity/gas
consumption and costs frequently enough to enable them to
regulate their own electricity/gas consumption” without
additional costs to the consumer for that service.
In order to cover the key elements of Article 12 and Article 13
ESD, five working groups (WG) examining the following topics
were held:
• 4.1 Energy Auditing Programmes in EU Member States
• 4.2 Metering & Billing
• 4.3 Energy Audits in Households
• 4.4 Behavioural Aspects of Metering & Billing
• 4.5 Cost-effectiveness of smart meters
Although both Art. 12 on auditing and Art. 13 on metering and
billing have the same overall goal, the requirements and areas
covered are different. Therefore, this report deals with these
two articles separately.
6 CA ESD Core Theme 4 Summary Report
The aim of the work on auditing within Core Theme 4 was to give participants of the plenary session an overview of the different auditing programmes available in the MS and provide them with information regarding the difficulties in the transposition and implementation of the ESD, and also about best practice and success stories.
Two working groups were held on auditing. The first covered
energy auditing programmes in different sectors, the second
put the focus on energy auditing programmes for households.
An Energy audit is defined in the ESD as “a systematic procedure
to obtain adequate knowledge of the existing energy consumption
profile of a building or group of buildings, of an industrial
operation and/or installation or of a private or public service,
identify and quantify cost-effective energy savings opportunities,
and report the findings.”
• Energy audits may apply to different areas (buildings,
industrial processes, services, etc.)
• Energy audits include analysis of the consumption and the
identification and quantification of energy saving measures.
• An energy audit results in a report.
• There is a link to buildings certificates as defined in the
Energy Performance of Buildings Directive (EPBD). Energy
performance certificates of buildings calculated according
to a methodology based on the framework of the EPBD are
regarded as equivalent to an energy audit.
3.1 Availability of energy audits in Member StatesThere are a wide range of auditing schemes in place in the
MS. However, in the case of energy audits for households we
explicitly asked the questions whether or not there is a causal
link between the ESD and the availability of energy audits i.e.
was an energy auditing scheme created or significantly
modified because of the requirements of the ESD. Most MS
participants argued that the ESD was not the main reason for
introducing auditing schemes. The EPBD-directive was in
many MS the big driver, but the ESD helped to reinforce the
EPBD-directive. Due to the ESD some programmes were fine
tuned and MS started to (try to) measure the effects of an
energy audit.
3 programmes were developed because of Art. 12. Bulgaria
has developed an operative scheme for energy audits in public
buildings. The ESD effectively boosted the creation of an energy
audit programme for agriculture in Finland. In Cyprus. Article
12 has been transposed into national legislation and four
Energy auditing in Member States3
CA ESD Core Theme 4 Summary Report 7
In most cases only the costs for the audits are (partly) subsidised.
Few auditing schemes also provide funding for investments.
Here are two examples of the financing of energy auditing
programmes:
• The Spanish E4 Action Plan (PAE4) was approved in 2007
by the national government. Financing for this programme
is collected from the national budget (35 million EUR), the
electricity tariff (275 million EUR), the gas tariff (57 million EUR)
and the regional budget (80 million EUR). There are no duties
for non-network based forms of energy. The total budget
will cover the years 2008-2012. The Spanish energy agency
IDAE (Instituto para la Diversificación y Ahorro de la Energía)
manages the budget. The auditing schemes also provide
funding for investments.
categories of energy audits are being introduced. In two MS there
are no auditing schemes available for households.
In some European MS the EPBD is the major reason for
introducing auditing schemes, for example in Italy, Spain,
Sweden and the UK. This is because the ESD regards an energy
performance certificate as equivalent to an energy audit.
3.2 Financing of energy auditsEven though all MS representatives agree in principle that
energy audits shall be available to all final customers, there
are significant differences in the costs and in the financing of
these audits.
The costs for energy audits in households vary between EUR 0
and 3,500. This variance also reflects the differences in
understanding of what is an energy audit between the participants
of the CA ESD (see below).
In most of the MS some financial support is available for audits.
However in Italy, for example, a tax reduction is applied. In Cyprus
a certificate costs around 300 – 400 euros and the subsidies
for households are 30-40%.
The primary source of funding for energy auditing schemes
was identified as the state budget (Figure 1). State and regional
budgets cover 63% of all recorded auditing schemes. Note
again that the data collected does not provide a complete list
of all the auditing programmes available in the MS.
The “other” category mainly contains funds obtained from
fees, taxes or structural funds. Environmental tax systems,
for example, are used in the UK, Italy and Spain for industrial
programmes. In Italy and Spain, fees from electricity tariffs
charged to all final end-users are used. In Romania, their energy
efficiency law includes compulsory energy audits for industrial,
private and public sectors without providing any public subsidies
for the audits. In Croatia, the Environmental Protection and
Energy Efficiency Fund finances 70% of the costs of an energy
audit for large consumers and the public sector.
41
32
17
55
Figure 1. Primary source of what is included in the
funding for energy auditing schemes
State budget only 41%
State and regional budget 17%
Regional budget only 5%
Energy sector 5%
Other 32%
8 CA ESD Core Theme 4 Summary Report
(BE, BG, DK, EE, FI, FR, IE, LU, NL, SI, SE, UK). As a consequence
of the ESD, a voluntary agreement between the relevant ministry
and some energy sector representatives was also signed in AT.
The Voluntary Agreements Working Group indicates that the
strongest motivation for industry is incentives and the most
appreciated incentives are subsidies for energy audits. In FI,
NL, BE, UK, BG the main motivations for joining voluntary
agreements was to get subsidies for energy audits. In DK an
independent energy audit must be undertaken before a company
can join a voluntary agreement. The incentives employed to
date worked because they cause (or force?) the companies to
stay in the agreement. In this sense, the presence of incentives
should make the agreements “compelling” instead of “voluntary”.
3.4 Quality of auditsAccording to the answers provided by the participants, two thirds
of the auditing programmes have an active quality control
scheme. More than half of the “no” answers relate to auditing
programmes that are not yet implemented but will be so in
the future.
The most common features such quality control schemes have,
as stated by the responses, are as follows:
• Feedback by the audited organisations / owners
• External evaluation by independent experts
• Random check and review on a selected sample of energy
audits / year
• Auditing report evaluation by the supervising auditing
organisation
• Comparison of results within the auditing programme
The German participant at the plenary session in Vienna
presented some details about the “Vor-Ort Energieberatung”
administered by the German Federal Government (Bundesamt
für Wirtschaft und Ausfuhrkontrolle, BAFA) - a programme
targeted at residential buildings where 30.000 audits were
performed in 2008. The auditors have to fulfil certain criteria
• Croatia started with an Environmental Protection and
Energy Efficiency Fund. The largest source of funding comes
from car registration taxes. The basis for the Funds is a
voluntary agreement. Croatia also uses UNDP programmes
to finance audits. The energy efficiency team from the UNDP
carried out more than 900 energy audits. 25 projects were
identified with investment costs of more than 2 million EUR
and will be implemented in the future. The programme is
designed for large consumers and the public sector.
3.3 Energy audits as part of voluntary agreementsThe energy sector (energy distributors, distribution system
operators and/or retail energy sales companies) may be
mandated to promote and ensure the availability of energy
audits to their final customers. Energy audits may also be part
of a voluntary agreement with stakeholders and an appointed
body (Art. 12(3)).
Voluntary agreements between industry and the administration
(referred to as branch contracts, programs, sector plans, or
other diverse names) have existed since the mid-1990s. With
such agreements, the signatories define the main objective
(reducing energy consumption and greenhouse gas emissions)
of the specific area of activity to be tackled by enterprises.
They then carry out and implement a programme of measures
to achieve the objectives.
Designed as alternatives to state regulation, voluntary
agreements can be very effective and efficient when they
result from a wide-ranging discussion and consensus between
stakeholders. They are particularly widespread in the
Netherlands, in Finland and in the UK. In Finland, an energy
audit is one of the mandatory measures to be implemented
when enterprises have signed the voluntary energy management
agreement (Energy Efficiency Agreements (EEA)) that specifically
covers the energy sector (provides audits for power plants,
district heating plants and networks).
The Voluntary Agreements Working Group within the Core
Theme on the Energy Sector1 reported that voluntary
agreements have been signed in 12 EU countries so far 1 See also CTSR3 – The role of the Energy Sector
CA ESD Core Theme 4 Summary Report 9
authorisation must be given by ‘Specialised organisations’
(e.g. the Hungarian Chamber of Engineers, the British Gas
City & Guilds). In 30% of the energy audits the ‘Administration’
gives the authorisation and in 22% of the cases the ‘Minister’
gives the authorisation. For the British Gas program in the UK
the authorisation is given by British Gas and is assessed by
the vocational learning establishment, City & Guilds.
3.7 Measuring energy savingsIn a majority of the energy auditing schemes, neither prior
estimation nor evaluation of the estimated savings per audit
has been made. The counselling and the advice given is based
on concrete measures and in those cases does not involve an
estimation of the related savings. Only in 7 auditing programmes
from 4 different MS (AT, FR, UK, LV) was the average energy
saving potential given and in 6 more auditing schemes from 4
MS (AT, BG, NL, FI) was an overall estimation or even a resultant
energy saving figure presented or could be retrieved if requested.
In the majority (75%) of the auditing programmes where the
energy savings are measured, the ‘Bottom-up methodology’
is used. For example, the UK EST home energy check auditing
programme uses the audits as part of an energy saving model
which generates energy efficiency savings related to the audits.
This is based on a telephone survey where they get back in
touch with people who have completed the audit at a later date
to find out what actions they have taken as a result of the audit.
in order to be eligible and they have to be independent. The
audit reports are randomly checked (around 20% of the audits)
by staff and by engineers.
3.5 Training of energy auditors In most of the MS the training is a combination of technical
aspects, administrative aspects, application of software and
legal aspects, but the duration of the training varies from 1 or
2 weeks to 5 months.
The presence of a uniform and standardised curriculum for
the training of energy auditors can lead to more high-quality
performed energy audits and assist the homogeneity of proposed
actions/measure per auditing scheme.
When asked if a uniform/standardised curriculum for the
training of energy auditors existed, out of a total of 38 replies,
around 55% gave an affirmative answer whilst 45% declined.
In 14 out of 23 MS (AT, BE, BG, HR, CZ, DE, EE, FI, FR, LI, PL, RO,
SK, UK) there are – at least in some sectors – standardized
training for energy auditors.
However, there are differences within MS between different
sectors. That is, whereas the training of energy auditors may
be standardised in one sector it may not be standardised in
another sector.
3.6 Qualification, accreditation and/or certification schemesThe qualifications required to become an energy auditor are very
different. In almost all cases the auditor needs to pass an exam.
71% of respondents cited a public authority (state or regional
administration and energy centres) as being responsible for
defining the eligibility criteria for auditors. It is also quite obvious
that in the majority of the cases where private companies are
responsible for the training of the auditors, they also have to
define the eligibility criteria.
39% of the MS representatives that said an authorisation is
needed for their auditing schemes also indicated that the
10 CA ESD Core Theme 4 Summary Report
With the Third Energy Market Package (2009/72/EC), the recast of the EPBD (2010/31/EU), the draft for a new Energy Efficiency Directive2, the efforts to modernise the existing grid and metering infrastructure3 and to empower consumers with new technology4; the demand for clear and correct information on energy consumption becomes ever more important for energy end-users. The ESD was the first piece of legislation that demanded more information about energy use, delivered frequently enough to enable customers to regulate their own energy consumption.
Within the framework of the Concerted Action, the different
experiences in the transposition and implementation of Art.
13 were discussed.
4.1 Transposition of Art. 13In principle, many Member States have indicated that they
have transposed and implemented these provisions already.
In August 2010 only two MS representatives reported that
their country has not yet transposed Art. 13 while 19 others
reported full transposition and 7 partial transposition. In the
situation where a new connection is made (in a new building
or following major renovation work), in 52% of the MS there is
already an obligation in place to provide individual meters that
give information on actual consumption and actual time of
use (Figure 2). In the situation where an existing meter is
replaced, 46% out of 26 Member states have an obligation to
provide individual meters that give information on actual
consumption and actual time of use (Figure 3).
Moreover, in a number of Member States there is a general
obligation in place to provide all consumers with individual
meters that give information on actual consumption and actual
time of use (Table 3). Most obligations refer to electricity and
natural gas only.
The obligation to provide individual meters that give information
on actual consumption and actual time of use depends on the
form of energy. In most cases a general obligation refers to
electricity and natural gas, in some cases also to district heating,
district cooling and domestic hot water.
Metering and Billing in Member States4
2 Proposal for a Directive on energy efficiency and repealing Directives 2004/8/
EC and 2006/32/EC [COM(2011)370], published on 22 June 2011,
http://ec.europa.eu/energy/efficiency/eed/eed_en.htm
3 European Commission (2011). Smart Grids: from innovation to deployment
(Communication), European Commission, 12 April 2011, Brussels.
4 European Commission (2011). Energy Efficiency Action Plan, COM (2011) 109
final, 8.3.2011, Brussels.
CA ESD Core Theme 4 Summary Report 11
46
35
12
8
Figure 2. Obligation in case of a new connection
Yes 46%
No 35%
In preparation 12%
Other 8%
n=26
4.2 Interpretation of Art. 13There is some misunderstanding between the Member States
on what are the requirements of Article 13(1) ESD regarding
meters, specifically with regards to meters that accurately
reflect actual energy consumption and provide information on
the actual time of use. Several Member States representatives
argue that in cases where the consumers have individual meters
the requirements of the Directive are fulfilled. Some Member
State representatives assume that providing the cumulative
energy consumption value satisfies the requirement of reflecting
actual energy consumption. Others argue that providing
information on the actual time of use is simply not a requirement
or argue that this information depends on the (frequency of the)
data collection and is not directly related to meter functionality.
52
30
11
7
Figure 3. Obligation in case of meter replacement
Yes 52%
No 30%
In preparation 11%
Other 7%
n=27 MS
Table 3. General obligation for advanced meters for
electricity, natural gas, district heating, district cooling and
domestic hot water
Alternatives Electricity Natural
gas
District
heating
District
cooling
Domestic
hot water
Yes 42% 48% 25% 17% 22%
No 31% 24% 67% 67% 67%
In
preparation12% 10% 4% 11% 0%
Other 15% 19% 4% 6% 11%
Number
of MS26 21 24 18 17
12 CA ESD Core Theme 4 Summary Report
Consequently, the Member States participants are divided on
the question of whether Art. 13 ESD can be fulfilled by
conventional meters or if advanced meters are needed and
the Directive indirectly demands an intelligent metering
system (so-called smart meters). A majority of the CA ESD
participants believe that the requirements of the ESD can be
fulfilled with conventional meters. 65% of respondents (17 out
of the 26 MS that replied) argued that advanced meters are
not necessary in order to measure actual consumption. In a
similar question, implementing bodies from only 11 out of 26
MS (42%) interpret the provision of individual meters that
“accurately reflect the final consumer’s actual energy
consumption and that provide information on actual time of
use” as a requirement for an intelligent metering system.
At the same time, it is not clear at all to the Member State
representatives how information on actual consumption and
actual time of use can be provided by conventional meters.
What becomes clear is that the question of the specific meter
functionality is not the priority in the implementation of the
ESD. Since there seems to be consensus that customer
involvement is crucial and advanced metering is only a means
to achieving energy savings, the important aspect is for
possible feedback about energy consumption to be received
by the end-users.
4.3 Frequent billing of actual consumptionIn Art. 13 (2) the ESD demands that billing shall be “based on
actual energy consumption,” is presented in clear and
understandable terms and shall be “performed frequently
enough to enable customers to regulate their own energy
consumption.” Art. 13 (3) includes specific details about which
information should be made available on the bill.
Across all energy streams, monthly billing is the most common
followed by annual billing. Combined, more than 40% of MS
currently operate monthly or bi-monthly billing for electricity
and gas (Table 4). However, contrary to ESD requirements,
billing is not always linked directly to actual consumption.
Customers are often billed based on a combination of estimation,
interpolation or self declaration. In many MS household
customers make fixed advanced monthly payments that are
agreed with the utilities and represent an average of past
consumption patterns. Customers then receive a summary
bill once a year showing a balance between the sum of the
advanced payments and the measured energy consumption in
line with the current energy price.
Regarding the frequency of billing, the majority of Member
State participants (>70%) feel that once a month is “frequently
enough” to enable consumers to regulate their own energy
consumption. Moreover, of those who responded, 78% believe
that frequent billing would indeed enable consumers to
regulate their own electricity. However, the point was made
that “enabling” consumers to do something did not
necessarily mean that they would actually do so. In other
words, frequent billing alone would not automatically lead to
behavioural change or a reduction in energy consumption.
Additionally, billing and information provisions need not
necessarily be synonymous. The provision of frequent
information regarding consumption behaviour was a more
important driver than the bill itself. In such circumstances, the
billing could be supplied at a lesser frequency.
Billing
Frequency
Electricity Natural
Gas
District
Heating /
Cooling
Domestic
Hot water
(district)
Monthly 8 9 6 6
Every Two
Months4 2 1 1
Quarterly 1 2 0 0
3 times a
year1 1 1 0
Half
Yearly1 1 0 0
Annually 6 6 5 5
Table 4. Frequency of billing in the MS
CA ESD Core Theme 4 Summary Report 13
consumption. Besides regular bills and access to energy
efficiency information, real-time monitoring of energy
consumption seems to be a promising feedback tool. Table 6
provides an overview.
Regarding the potential energy savings through the use of
feedback on energy consumption, some EU Member States
made an assumption about possible energy savings. The
expected savings in most cases vary between 2% and 10%
(Table 7).
4.4 Potential benefits of additional feedbackMetering and billing in itself does not trigger energy savings.
The question is if and how informative billing enables customers
to regulate their own energy consumption, as postulated in
the ESD. In order to share information on what information the
final costumers receive in the MS, a working group discussed
the existing billing practices and additional information and
services based on electronic meters.
There is a range of services that is already available to
customers in the Member States. Variable tariffs have been
introduced in 19 MS and are either in test phase or being
planned in the majority of the remaining states. Real-time
consumption information to the customer, in the form of
in-home displays or internet portals, has a significant presence.
Table 5 above presents a summary of these services planned,
tested or introduced in the Member States.
Consumption information properly targeted to consumer
needs may indeed help end-users to improve their energy
efficiency and save energy. Advanced metering data opens up
the possibility of offering a wide variety of services to both
consumer and operator. Member States representatives were
asked to, in their own opinion, to indicate which of these
might have the greatest potential in enabling customers to
change their behaviour and regulate their own energy
Number of Member States
Metering Services Tested Planned Introduced
Variable tariffs 4 2 19
Demand response programmes 8 3 5
Internet portals 7 4 12
In-house displays 10 4 1
Direct load and consumption control services 4 2 4
Metering data used for energy audit programmes and energy
saving advice for households5 5 7
Table 5. Metering services being tested, planned or
introduced across MS
14 CA ESD Core Theme 4 Summary Report
Table 6. Services to assist behavioural change
Measure Responses
Detailed bill packages listing actual consumption and pricing information in addition to historical usage profile 23
Access to energy efficiency information (e.g. brochures, leaflets, websites) 19
Real-time monitoring of energy consumption via In Home Displays or similar devices 17
Direct Fiscal incentives (e.g. rewards for reducing overall energy consumption) 16
Variable Tariffs based on time of use, peak load etc. 13
Energy supplier / distributer / sales company providing online access to customer energy usage 12
Third party services (e.g. web based tools that access and analyse customer’s meter data) 9
Table 7. Overview of assumed long-term energy savings
MSElectricity Gas
RemarksMin Max Avg Min Max Avg
AT 3,5% 7%Savings estimated by Regulatory Authority for feedback on monthly
basis. and daily on internet; other stakeholders find this too optimistic
BE 1,5% 2,5% 1,5% 3% Max in case of provision of display
ES 8% Estimation
FI 5% 10% Estimation
FR 5% 15% Estimation with real-time consumer information
HU 1% 1.5% Analysis by AT Kearney/Force Motrice (2010)
NL 3,2% 6,4% 3,7% 5,1% Study by KEMA Nederland by order of the Ministry of Economic Affairs
PL 10% Estimation by Polish Regulatory Office (URE)
SE 5% 20% Consumer who choose a spot price related agreement
UK 1,5% 4,0% 2,8% 1,0% 3,0% 2,0% Assumed savings from feedback for UK Impact Assessment to DECC (2010)
Note that these figures do not necessarily represent empirical evidence but are mostly assumptions for national cost-benefit analyses.
CA ESD Core Theme 4 Summary Report 15
Core Theme 4 on auditing, metering and billing has enhanced the sharing of information between ESD implementing bodies in the MS. It has highlighted a whole range of different auditing programmes in the MS – some of them had been in place long before the adoption of the ESD, some were created because of the ESD or the EPBD. However, in order to promote the introduction of energy services and audits, further convergence of procedures might be useful. Additionally, a closer interaction in terms of Qualification, Accreditation and/or Certification scheme (QACS) is desirable.
5.1 Energy Auditing Programmes in EU Member StatesMS use a wide range of approaches: regulation is a powerful
common tool found in each country, which are linked more
and more with decisions at a European level. The widespread
implementation of energy management institutions can also
be noted at national, regional and local levels, even if their
status and competences vary from one country to another.
Another general tendency is to give greater responsibility to
energy and financial operators in project implementation. The
state regulator role thus becomes increasingly important in
setting the market rules to boost energy conservation measures.
Regional programmes: There are more and more regional
and local initiatives, particularly in countries with a long
tradition of decentralisation that encourages energy efficiency
actions. Most of the regional initiatives are jointly funded with
budget provided by the state. This implies the creation, training
and leading of local teams in support of local authorities; in
some initiatives a local pool of energy auditors was established
that could perform the energy audits. Information and
exchange networks at national and international levels have
been developing.
Mix of financial tools: At present, there are a remarkable
variety of public incentives for energy audits. They are funded
by the public budget and tax system, direct subsidies, energy
efficiency funds (with different sources of funding such as levies
on energy) or public-private partnerships. Partnerships have
become increasingly popular as well as specific investment
support funds. In addition to traditional tools, there are now also
investment plans that leave more room for private operators.
Increase energy sector involvement: Most of the auditing
schemes are financed or at least financially supported by public
money. State and regional budget cover 63% of all recorded
auditing schemes.
Lack of auditing schemes in the transport sector: Auditing
programmes have essentially focussed on the industrial
sector as well as on the buildings sector. The answers to the
Summary5
16 CA ESD Core Theme 4 Summary Report
questionnaire seem to indicate that not enough effort has
been put on the transport sector so far. While private traffic is
difficult to tackle, energy auditing schemes can be more easily
implemented in public transport fleets and goods transport.
Monitoring and evaluation: The process of monitoring
auditing schemes seems to be important. Most of the auditing
programmes (66%) are evaluated, 14 auditing schemes are
even evaluated once a year. Some of the schemes even evaluate
the achieved savings with internal or external evaluators. Such
reviews must register any of the comments that the audited
end users made, including the savings that were achieved by
the proposed measures. This quality control/monitoring
mechanism can summarise the number of grants given, the
volume of performed audits and the estimated savings after
examining the volume of implemented actions. Of course such
a detailed auditing scheme holds a significant administrative
cost and as a consequence should be considered only for
schemes that are targeting a high number of end-users or
have a high energy saving potential.
Criteria for success: From the questionnaire feedback received
the most successful programs seem to be those schemes that
combine the following characteristics: coherence (good definition
of target group, good complementarities and coordination of
measures), costs are evenly divided between concerned
stakeholders and a public body, flexibility, administrative
simplicity, quality of information and awareness raising,
participation and motivation of different stakeholders, continuity
(implementation of a structural policy, planned and sustainable)
and significant environmental advantages.
Quality of energy auditors: 55% of the reviewed auditing schemes
have a uniform curriculum for the training of energy auditors.
The auditors have to be able to identify and promote the use
of the most appropriate energy efficient measures during any
given audit and to provide support for the assessment of the
overall savings. Moreover, the quality of the audit reports
depends on the level of competency of the auditors, laying the
ground for the introduction of any measures at the end-user
(auditionee) level. The value of those reports is great and
therefore the competence and accuracy of the auditors has to
be ensured.
Eligibility of auditors: Most of the schemes that have a
standardised curriculum also have eligibility criteria for auditors.
Common criteria are relevant academic education, professional
experience in the field, attendance of specialised training
courses, or the membership of accreditation schemes or
professional bodies. Eligibility criteria and the existence of a
pool of eligible auditors makes it easier for the customer to
trust the auditor and to rely on his or her neutrality and are
thus highly recommended.
Auditing tools: Standardised tools for the auditors are used in
75% of the reviewed auditing schemes. What seems to be
important is to reach a common European understanding
within different sectors on what European auditing tools should
look like and to develop them where they do not already exist.
5.2 Metering & BillingWide variances in the interpretation of Art. 13 ESD: Art. 13 does
not explicitly mention smart metering. Therefore, a number of
MS representatives argue that the provision of individual meters
and, for example, the annual billing of energy consumption
fulfils the requirements of the ESD. Others interpret Art. 13 in
a narrower sense. In particular the provision to perform
billing frequently enough to enable customers to regulate
their own energy consumption is arguably a strong yet indirect
case for intelligent metering technology.
Individuality of the meters: New buildings are equipped with
individual meters with the household as a unit. However, old
buildings with district heating are usually metered on the basis
of the building or block of apartments. Changes are technically
difficult and economically expensive and thus will not happen.
However, even when individual meters are in place, they do
not necessary provide information on actual time of use.
Art. 13 ESD has no causal influence on changes in metering
& billing policies: In general, both the transposition of Art. 13
and the discussion about smart metering policies is well under
CA ESD Core Theme 4 Summary Report 17
is a condition to get financial support for implementing the
measures. During the discussions some MS asked for a clear
definition of an energy audit.
Cost of an energy audit: there seems to be a wide variation in
the costs of an energy audit for households. In almost all MS
financial support such as interest free loans, subsidies or tax
rebates, exists.
Quality control: a lot of MS have introduced some kind of
authorisation for the auditors. Yet the qualifications required
to become an energy auditor are very different. In most of the
MS the training is a combination of technical aspects,
administrative aspects, application of software and legal
aspects, but the duration of the training varies from 1 or 2
weeks to 5 months. In almost all cases the auditor needs to
pass an exam. Besides authorisation some MS also have
specific requirements. These requirements are very different
between MS: they vary from a diploma (architect, engineer) to
a number of years of experience in energy projects or a
combination of requirements. It is very surprising to see that
not all MS have implemented a quality check.
Effectiveness and energy savings: most MS participants find
their programmes (cost) effective or even very (cost) effective.
However, only few MS calculate savings due to energy audits.
During the discussions the question was raised if it was
necessary to calculate energy savings, because most MS
calculate the energy savings for the measures that are
implemented. To avoid double counting it is argued in some
MS that no savings are realised with an energy audit by itself.
On the other hand, some MS representatives argued that an
energy audit leads to behavioural changes and it should be
possible to calculate these energy savings.
Need for an energy audit: some CA participants find that an
energy audit is no longer needed since an energy performance
certificate is obliged by the EPBD-directive. On the other hand,
MS representatives argued that there is a difference between
way in the MS. At the time this topic was covered5, only 8 MS
representatives indicated they have not yet transposed Art. 13
and in only 6 MS are there neither smart metering policies
nor discussions about it. On the other hand, most of the WG
participants argued that changes in metering and billing in
their MS were due to factors other than the ESD. That is to say
that the causal influence of Art. 13 ESD is rather weak.
Costs, energy savings and data security as controversies:
The introduction of smart metering hardly happens without
controversies, as was shown by the example in the Netherlands.
The most controversial issues are related to the costs of the
investment, followed by concerns about actual energy savings
and questions related to data security and privacy.
Ownership of meters: In general the energy supplier or distributor
is the owner of the electricity meters in the MS. In liberalised
metering markets the meters are owned by metering companies.
5.3 Energy Audits in HouseholdsLink with article 12 of the ESD: Article 12 did not have a big
influence on the implementation of energy audits in the MS.
Although all MS have auditing schemes in place, most CA
participants argued that the ESD was not the main reason for
introducing auditing schemes. The EPBD-directive was for
many MS the big driver, but the ESD helped to reinforce the
EPBD-directive.
Definition of an energy audit: since there is no definition of an
energy audit, there are some (wide) variances in auditing
programmes. The majority of the programmes use standardised
tools, such as software or questionnaires, but there are some
wide variations in the content. For most of the programs a visit
is needed, but some MS choose to have a self check of the
building carried out by the owner or tenant. Also the information
that is given to the customers is very different. Some MS give
standardised recommendations, other MS choose individual
recommendations, tailored to the specific building. The
majority of the reports also contain some kind of financial
information. The implementation of the measures is in most
programmes not obligatory, but in some MS the energy audit 5 April – September 2010
18 CA ESD Core Theme 4 Summary Report
Finally, regarding the potential to change behaviour, in the
opinion of the respondents, the majority (82%) feel that detailed
information packages (note: not necessarily bills) which include
data on consumption patterns and pricing have the most
potential. The majority of respondents feel that “frequent
billing” will enable customers, who wish to do so, to regulate
their energy consumption.
5.5 Cost-effectiveness of smart metersIn February 2011, 12 MS had implemented the requirements
of Art. 13(1), whereas in several other MS implementation
was (still) in preparation. The implementation rates were
highest for electricity and gas and relatively low for district
heating, cooling and domestic hot water, indicating that the
conditions of Art. 13(1) in these situations are less likely to be
fulfilled. In several MS, where there is an obligation to provide
individual meters that reflect actual energy consumption and
provide information on actual time of use, customers have the
option of refusing the (re)placement of the meter.
One MS representative explicitly linked the implementation of
Art. 13(1) ESD to the implementation of Annex I, point 2 of
Directive 2009/72/EC, suggesting that the latter provided a
better framework for implementing intelligent meter systems
with more functionality (“smart grid”). However, some other
national representatives do not see this link.
The requirements of Art. 13(1) still give rise to misunderstandings
such as:
• The assumption that an individual meter “automatically”
would fulfil the other requirements (reflect actual energy
consumption, providing information on actual time of use).
• The assumption that a meter providing the cumulative
energy consumption value satisfies the requirement of the
meter reflecting actual energy consumption.
• The assumption that providing information on the actual
time of use depends on an action of the energy supplier to
collect data, i.e. information on the actual time of use requires
action of the energy supplier.
• The assumption that Art. 13(1) provides a complete set of
requirements for “smart meters”.
an energy performance certificate and an energy audit. The
added-value of an energy audit to the consumer might be an
in-depth review of the behavioural aspects of energy
consumption (and not only to the quality of the building
envelope and the corresponding infrastructure) as well as the
financial aspects of energy efficiency measures (including
costs and subsidies).
5.4 Behavioural Aspects of Metering & BillingSimilar to the conclusions on other topics, it can be established
that interpretations of Art. 13 differ widely between the MS.
Paper billing is still the predominate form of billing with
monthly and annual billing frequencies being the most common.
Billing does not necessarily reflect the actual consumption
for the period in question. Many countries read energy meters
at lesser frequencies than they issue bills. End-users in only
few MS receive bills based on actual consumption with an
appropriate frequency.
The majority of MS show the relationship between the cost of the
energy and declared consumption as part of the bill package,
but user specific information (such as peer comparisons or
usage patterns) are still rare.
16 MS either already have energy sector specific data protection
regulations in place or they plan to do so.
In terms of metering services, variable tariffs have been
introduced, tested or are being planned in 25 out of the 28 MS.
Provision of real-time consumption data is also high on the
list of services provided.
There was a broad disagreement that advanced meters are
necessary to measure actual consumption. If it is just “actual
consumption” that is required to enable behavioural change,
then this can be measured by “simpler” meters. It is the
presentation of this information to the customer, in a “smart”
manner that matters.
CA ESD Core Theme 4 Summary Report 19
Regarding the assessment of the costs and potential benefits
of advanced metering and billing, 8 MS have carried out an
estimate of long-term potential energy savings as a
consequence of the provision of individual meters that reflect
actual energy consumption and provide information on actual
time of use. The expected savings vary in most cases between
2% and 10% and depend on the way the information is conveyed
to final customers.
7 MS have carried out a cost benefit analysis in relation to
Art. 13(1) and/or Directive 2009/72/EC. In 6 MS a cost benefit
analysis is in preparation or under consideration. However, it
should also be noted that in the majority of MS “cost effectiveness”
has not (yet) been defined. 5 MS shared results of their cost
benefit analysis: in 3 MS the overall outcome was positive
(although one MS representative mentioned that the results
are highly contested), in 2 MS the business case was negative,
although they indicated that the analysis was probably (too)
restricted.
The key cost factors mentioned were investment in meter
hardware and installation costs, whereas the key benefits
mentioned were more differentiated: energy savings, operational
efficiency from process improvements, savings on call centre
costs and fraud detection.
In all MS the implementation of the ESD and the Directive
2009/72/EC is the responsibility of the same ministry. In half
of the MS coordination takes place between ministries, energy
agencies or other institutions regarding the implementation
of these Directives.
20 CA ESD Core Theme 4 Summary Report
The work of Core Theme 4 on auditing, metering and billing has assisted the participants to assess the situation in their own MS relative to the implementation of the ESD in others. At the same time, best practice examples were discussed and a network of ESD implementing bodies was created that allowed for further exchange of information outside of the main Plenary Meetings. In this way there was consensus between the participants of the MS that the Working Group discussion at the plenary session, as well as the structured information provided in the Working Group reports, is of clear added-value for the implementation of the ESD and the overall goal to achieve energy savings.
However, this Concerted Action also highlighted the difficulties
of reaching common ground and possible convergence of the
different positions in the MS. For example, different qualification,
certification and accreditation schemes (QACS) make it difficult
for energy auditors to offer their services in MS other than
their own. These different requirements may act as a barrier
to a European energy services market and might call for
stronger regulation.
Other examples, such as the requirements for metering and
billing, underline the importance of the ESD to improve energy
efficiency by way of more information and conscious consumers.
Although the results of the implementation of Art. 13 are
mixed and there is a wide range of different interpretations of
this article, the requirements of the ESD keep energy efficiency
and additional information to the end-user as the central
elements for any modernisation of the metering infrastructure.
The work within this Concerted Action has shown the
importance of regular information and confidential exchange
of information for the implementation of the ESD.
Concluding remarks6
CA ESD Core Theme 4 Summary Report 21
Topic Issue Outcome Future
Article 12
Availability of audits MS shall ensure the availability
of efficient high-quality energy
audit schemes.
A wide range of different
auditing schemes is in place.
However, only in some MS the
ESD was the trigger for these
schemes and not all sectors are
covered.
More incentives and/or
obligations for providing audits
also for non-commercial
segments.
Financing of audits Costs and financial support
varies between MS.
The primary source of funding
is national and regional budget.
The costs of audits differ
because of scope and quality.
Financial support should be
available in all MS for audits
particularly for non-commercial
segments (e.g. funds obtained
from fees, taxes or structural
funds).
Audits as part of
Voluntary Agreements
(VA)
Energy audits may be part of VA
as alternatives to state
regulation.
Voluntary agreements have
been signed in 12 MS.
Strong incentives to conclude
agreements and audit as
condition for joining the VA.
Quality of audits High-quality energy audit
schemes shall be available in
MS.
Two thirds of the auditing
schemes have an active quality
control scheme.
Quality control for all auditing
schemes; development of
standards for good practice of
quality control.
Training of auditors High-quality audits require
well-trained auditors
Training is a combination of
technical, legal and
administrative aspects,
application of software; the
duration varies from 1 or 2
weeks to 5 months; in 14 MS
there are standardized
trainings available for some
sectors.
Development of
recommendations for
standardised curricula for the
training of energy auditors in
different sectors.
Table 8. Overview table
22 CA ESD Core Theme 4 Summary Report
Topic Issue Outcome Future
Article 12
Availability of QACS Accreditation and certification
may increase quality of audits.
In most MS there are some
eligibility criteria and some
form of authorisation for
auditors; in most MS the
auditor needs to pass an exam
following training.
Recommendations for some
form of harmonisation of
eligibility criteria and
authorisation between MS to
support common market for
energy auditors.
Measuring savings The purpose of audits is to
achieve energy savings.
In a majority of the energy
auditing schemes, neither prior
estimation nor evaluation of the
estimated savings per audit has
been made
Developing methods to
estimate savings effects of
energy audits, in relation with
quality control of audits.
Article 13
Transposition In August 2010 only two MS
reported that they have not yet
transposed Art. 13.
In only 52% of the MS there is
an obligation in place to provide
individual meters that give
information on actual
consumption and actual time of
use in case of a new connection.
Transposition of requirements
of Art. 13 in all MS.
Interpretation Misunderstandings on what the
requirements of Art. 13 are with
regards to measuring actual
consumption and providing
information on the actual time
of use.
MS representatives are divided
in the question whether Art. 13
ESD can be fulfilled by
conventional meters or
advanced meters are needed;
only 11 out of 26 MS
representatives interpret Art.
13 as a requirement for an
intelligent metering system.
Clarification on the actual
requirements of Art. 13 and
strategies to provide information
on actual consumption and
actual time of use are needed
(independent of technical
specifications of metering
system).
CA ESD Core Theme 4 Summary Report 23
Topic Issue Outcome Future
Article 13
Frequency of billing ESD demands that billing shall
be “performed frequently
enough to enable customers to
regulate their own energy
consumption.”
Across all energy streams,
monthly billing is the most
common. 40% of MS currently
operate monthly or bi-monthly
billing; a majority of the
Member States (>70%) feel that
once a month is “frequently
enough” to enable consumers
to regulate their own energy
consumption.
Implementation of frequent
billing based on actual
consumption; definition of
“frequently enough” is
desirable.
Billing of actual
consumption
ESD demands that billing shall
be “based on actual energy
consumption,”
Billing is not always based on
actual consumption but on a
combination of estimation,
interpolation or self declaration.
Implementation of billing based
on actual consumption.
Potential benefits of
additional feedback
The purpose of frequent billing
based on actual consumption is
to enable consumers to regulate
their own energy consumption.
A range of services to
consumers is available in the
MS to provide information about
energy consumption.
More information is needed as
to which kind of feedback
provides most benefit as well as
least costs.
For further information please visit www.esd-ca.eu
or contact [email protected]
Background and Legal DisclaimerThe directive 2006/32/EC on Energy End-Use Efficiency and
Energy Services (ESD) was adopted on 5 April 2006. The
transposition date for all Member States (MS) was 17 May
2008 and the overall aim of the ESD is to enhance the
cost-effective improvement of energy end-use efficiency. The
efforts required to implement the ESD in all MS are
significant and many of them are facing common challenges.
This means that alongside the challenges posed, there are
also significant opportunities to share experience, avoid
pitfalls and build on others successful approaches.
In the context of the Intelligent Energy Europe (IEE) Programme,
a Concerted Action (CA) is an instrument which provides a
structured framework for information exchange between the
organisations in charge of the national transposition and
implementation of a Directive. This mechanism allows each
MS to know and understand what other MS are doing and
why. However, CA topics are only related to issues where a
directive does not require a harmonised approach but where
harmonisation is considered beneficial.
The Concerted Action for the Energy Services Directive (CA
ESD) provides a structured framework for the exchange of
information between 27 Member States, Croatia and Norway
(called together hereafter MS) during their implementation of
the Directive. Each MS can share its knowledge and experience,
and draw on that of others, in order to adopt the most
successful approaches towards implementing the ESD and
avoid pitfalls highlighted by others.
The work of the CA ESD is structured around five Core Themes
covering the key elements: Core Theme 1 – National Energy
Efficiency Action Plans; Core Theme 2 – The Role of the
Public Sector; Core Theme 3 – The Role of the Energy Sector;
Core Theme 4 – Auditing, Metering and Billing; Core Theme 5
– Use of Financial Instruments. This report aims to distribute
the main findings of the Core Theme 4 - The Role of Auditing,
Metering and Billing. It starts by summarising the results
from five working groups and provides a summary of findings
at the end.
The overview provided does not necessarily reflect the positions
taken by individual participating countries. It is clear that a
wide variety of solutions are available where the implementation
of legislation is concerned, and there is no ‘silver bullet’ to
the optimal implementation of the ESD. This report does not,
in any way aim to prescribe the best action or best direction.
The sole responsibility for the content of this document lies
with the authors. It does not necessarily reflect the opinion of
the European Union.
Neither the EACI nor the European Commission are
responsible for any use that may be made of the information
contained therein.
This is an IEE funded action.
