Business Energy Policies - What's Next? -
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Business Energy Policies – What’s Next?


Business Energy Policies – What’s Next?

The fight on energy consumption in business is something that isn’t going to go away. Policies around what is acceptable usage for a business are constantly changing, and it is the responsibility of people running the business to ensure that they are hot on what is coming next. 2017 has seen some changes in energy policy that could impact certain businesses significantly. In this blog we will look at these changes, so you know exactly what’s going on.


Emissions Reduction Plan

The Government’s ‘Emissions Reduction Plan’ (ERP), or ‘Clean Growth Plan’ (CGP) remains unpublished. Despite this, we do know that although there have been significant improvements in business energy consumption, there is still a long way to go. A 57% drop in emissions is required by 2030, and yet the plan of action remains unpublished by the Government. Despite not having the official report, research has indicated that significant improvements are required in specifically transport and heating. It is therefore in a business’ best interests to address these areas now and get ahead of inevitable policy changes that are not all that far away.


Energy Efficiency Taxes

Energy efficiency is improving every day, and it is because of this that although the initial outlay may be significant, the rewards can be many. There are initiatives in place that can reward businesses for embracing energy efficiency. If a business can demonstrate that they are operating more efficiently and therefore causing less environmental impact, they may be eligible to apply for a scheme with the government that will reduce the amount of tax payable. In addition to this, once the energy efficiency plans have kicked in within business operations, there could be a saving of 16% on bills according to a report by the Committee on Climate Change.


Minimum Energy Efficiency Standards (MEES)

‘Minimum Energy Efficiency Standards’ is a huge policy change that will have a significant impact across commercial landlords and renters. Currently, buildings are not required to achieve a certain energy efficiency rating, they are just required to obtain one, no matter how bad it might be. This is all set to change in April of 2018 when no new tenancy can be agreed or current ones renewed if the rating is below an ‘E’. This means that landlords across the country will have to have their energy rating re-assessed, and then make improvements where necessary.

Worryingly, research is showing that up to 45% of commercial landlords are simply not aware that this change in policy is even coming! Failure to adhere to the policy changes in April 2018 will result in the loss of rent for the duration of time it takes to bring a property up to energy efficiency regulations, so starting the process now can save having empty properties in the future.

Of course, if any changes are necessary they will come at a price. This is where this policy change could have an impact on businesses throughout the UK. 65% of commercial property owners have stated that they would consider raising the cost of rent in order to cover the cost of meeting these new energy efficiency regulations. It is this knock-on effect that can cause increase operation costs for businesses UK wide.



There are so many ways that businesses can improve upon their environmental impact. At Thermorend all of our insulation experts are aware of energy efficiency best practices and would be happy to answer any questions you might have. Get in touch today by phone on 01656 662 096, or email us at