New energy efficient purchasing requirements: In force now! - DAC Beachcroft

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New energy efficient purchasing requirements: In force now!

Published On: 5 June 2014

In-scope authorities must comply with new minimum standards for products and services which are purchased, or buildings which are purchased or rented, on or after 5 June 2014. A new Procurement Policy Note (Action Note 07/14) requires compliance with set energy efficiency standards when purchasing products and services, and purchasing or renting buildings to ensure government compliance with the Energy Efficiency Directive 2012/27/EU. The PPN issued 3 June comes only just in time to meet the implementation date required by the Directive of 5 June 2014.

The PPN notes that the Directive requires the government to encourage other public bodies to follow the Central Government example, but goes no further in terms of requiring steps to be taken.

How do you comply?

Annex 1 of the PPN sets out the detailed requirements when purchasing goods and services.

For goods, there are detailed requirements about the energy classification, including a requirement, for certain product classes, to purchase only those which have the highest energy efficiency class.

For services, authorities must, in their tender documents and the services contract, require service providers to comply with these energy efficiency requirements when using any products in the course of the provision of the services.

For the purchase or rental of buildings there are minimum standards set in Annex 2 of the PPN. These standards include requirements for the principal fuel for space heating and a minimum EPC rating based on building type. This does not apply where buildings are purchased for deep renovation, demolition or for resale without being used for the authority's purpose, or to preserve listed status.

Are there any exceptions?

These requirements only apply where the value of the contract is equal to, or greater than the applicable threshold established under the Public Contracts Regulations 2006 and where to comply is consistent with achieving:

  • Value for money
  • Economic feasibility
  • Wider sustainability
  • Technical suitability
  • Ensuring sufficient competition