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10 Jan

What’s New in Business Energy in 2022?

by Simon Thompson

Climate change and sustainability are high on the agenda in 2022, which means more and more businesses are going to be held to account – and this will have an effect on your business energy quote too.

Here is the D-ENERGi team’s round-up of the changes businesses can expect to see this year in regards to carbon and energy reporting.

Changes to the UK Emissions Trading Scheme (ETS) cap

The UK’s ETS was launched in 2021 as a replacement for the EU ETS which the UK left when it left the EU. The ETS places a cost against carbon pollution in order to encourage polluters to reduce the amount of their emitted greenhouse gases.

ESOS to potentially be extended to medium-sized companies

The UK government recently announced it would be shaking up the Energy Savings Opportunity Scheme (ESOS) in a bid to increase the uptake of energy efficiency measures and improve the quality of audits.

It is also aiming for businesses to include an assessment of actions needed for them to achieve net-zero by 2050 as a recommendation.

Mandatory TCFD for large companies from 6th of April 2022

Recommendations from the Task Force on Climate-Related Financial Disclosures (TCFD) means that over 1300 of the UK’s largest companies and financial institutions will have to start disclosing their climate-related financial information from the 6th of April.

Performance-based energy ratings for larger buildings to come into force

The UK government is currently consulting on the use of a framework for the rating of carbon and energy performance of commercial buildings, which if passed means that if you own or are the sole tenant of a large building you may be required to rate the energy performance of the building as it is in-use.

Widening of scope of the SECR

Streamlined Energy and Carbon Reporting (SECR) originally became law in 2019, but the UK government is considering widening its scope in order to drive greater climate change action ahead of the target date for Net Zero carbon.

There is some indication that one change they may implement concerns reporting on the scope of emissions. At the moment, SECR focuses solely on Scope 1 and 2 emissions – which may affect your business electricity quote – but some businesses are choosing to report on their Scope 3 emissions voluntarily too. It is likely that Scope 3 emission reporting will become mandatory in the future as the associated emissions make up the bulk of emissions from most large companies.

Here at D-ENERGi we aim to provide a real alternative to the big five energy suppliers, by offering the most competitive business electricity and business gas quotes in the UK.