Mandatory Corporate Energy Reporting Begins July 1 2006

01 Jul 2005Archived News Climate Change Matters

The Australian Government (DITR) is introducing a new program to encourage large energy-using businesses to improve their energy efficiency and to implement continuous improvement programs to manage energy. From July 1 2006 the Energy Efficiency Opportunities (or EEO) program commences.

 

EEO will affect all corporations using over 0.5 PJ (peta-joules) of energy annually. Typically this equates to an annual energy bill of more than:

  • $1.5 million for gas; or
  • $5 million for electricity; or
  • $11 million for diesel fuel, or any combination >0.5PJ.

As the program applies to total energy use of the top corporate entity nationally, the program will involve not only large industrial sites, but also many commercial businesses with large numbers of smaller facilities. The program is expected to impact up to 250 corporations across Australia.

EEO requires the top corporate entity to report on energy efficiency opportunities for all facilities individually using over 0.5 PJ of energy annually. Reporting must cover 80% of total energy use across the entity and it is important to note that EEO also includes transport use of energy.

EEO requires that technical energy savings assessments are conducted, and that a continuous improvement process is implemented and evidence of this is thoroughly documented by companies. Specifically, companies are required to report on 6 elements of management policy, practices and procedures.

EEO-Assessment-elements.jpg

 

Reference: Page 39 Energy Efficiency Opportunities Industry Guidelines

The EEO requires implementation throughout a series of program stages shown broadly in the timeline below:

EEO-program-cycle.jpg

 

Reference: Page 19 Energy Efficiency Opportunities Industry Guidelines

For most businesses, the key driver for timing will be when the first public report is required by the program. It is important to note that the EEO report can be integrated into other public reports, such as Corporate Social Responsibility (CSR), sustainability and environmental reports. Therefore, prior to planning and producing the first report, it is advantageous to explore how EEO mandatory reporting will line up with other public reporting schedules for 2008.

There are not only links between public reporting, but also the management of other programs that a company may be involved in. When planning for EEO requirements, it will also be beneficial to integrate the response with the company's requirements under other related activities including:

  • For large NSW sites, DEUS Energy Savings Action Plans and funding available for savings projects;
  • Greenhouse Challenge Plus program;
  • WA Greenhouse Gas inventory reporting;
  • Demand management/load curtailability programs;
  • Existing and planned Victorian energy efficiency program;
  • Internal corporate energy savings policy/targets/programs; and,
  • Positioning on environmental matters such as green power purchasing and the use of carbon trading instruments (e.g. NGACs).

Energetics has been involved with this program for a total of fifteen months including conducting an initial review of program design, assessing legislative impacts on business, conducting two corporate EEO pilots, and currently we are looking at streamlining EEO with other programs.

Our experience in the pilot indicates that many companies may find EEO demanding and that DITR is very focused on seeing documentation of companies management processes. As such, Energetics can support companies through the process with tools such as:

  • One-2-Five Energy (our continuous improvement and management systems analysis tool) to help companies implement management processes;
  • EnTERPRIZE.EM (our online data management and reporting tool) to manage information and reporting requirements specific to the EEO program;
  • EEO/Energy Management communication and capacity building approach to help companies manage the requirements of EEO internally in the long term;
  • EEO templates and calculation tools to improve reporting efficiency; and,
  • Strategic advice and expertise to help companies avoid program duplication.

Energetics will be running a series of client briefings on EEO in August 2006. Invitations will be released over the next couple of weeks. In the meantime, Energetics would be pleased to help you with any queries you may have on the program and how it might affect your business. To find out more about how Energetics can help, please contact your Energetics' Account Manager. 

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