Network Rail’s compliance obligations

 Business Compliance

The Network Rail Energy Management team is responsible for assuring that the business is carrying out its operations in an energy and carbon efficient manner.  This includes checks and balances to assure that standards, policy and legislative obligations are being correctly followed, and to provide appropriate guidance and advice so that business units know what they need to do and how they can fulfil their obligations.

There are a number of legislative obligations that surround the Energy and Carbon landscape.  The central Energy Management Team holds a compliance register and provides an assurance role to the business. You should use the attachment in the side-bar to check that you are fully compliant with relevant obligations.

There are currently 5 pieces of energy legislation that Network Rail must comply with, as outlined below:

  • Carbon Reduction Commitment (CRC)
  • Regulation on Wholesale Energy Markets Integrity and Transparency (REMIT)
  • Display Energy Certificates (DEC)
  • Energy Performance Certificates (EPC)
  • Heat Metering and Heat Networks regulations

The following new legislation will also affect Network Rail:

  • Minimum Energy Efficiency Standards – further information on MEES can be found below

Carbon Reduction Commitment (CRC)

The CRC is a government mandated energy reporting scheme, targeted at medium to large energy consumers, aiming to cut emissions by 1.2 million tonnes of carbon a year by 2020; the CRC is designed to support the national UK target of reducing carbon emissions by 80% by 2050. High energy users, such as Network Rail, are incentivised to improve their energy efficiency and reduce CO2 emissions. Some energy consumption used for “transport” purposes is exempt from adhering to the CRC; Network Rail has interpreted this to mean any site where staff are not based, and Traction electricity.

The Energy Management team carry out the compliance activities but need to be informed by Routes, Projects and Property of the sites where they consume electricity and gas.

For details on the process of reporting consumption, qualification and payment dates, please see the information sheet in the side-bar.

Regulation on Wholesale Energy Market Integrity and Transparency (REMIT)

REMIT is an EU regulation (number 1227/2011) aimed at enabling regulators to identify market abuse in the wholesale energy market across Europe. It requires suppliers with the capacity to sell more than 600GWh of electricity or gas to record their trades; as Network Rail meets this capacity, we must comply with REMIT.

The STE Energy Management team carry out the compliance activities.

For further information on our compliance with REMIT, please see the information sheet in the side-bar.

Display Energy Certificates

Since 2015, Display Energy Certificates (DECs) must be publicly displayed in buildings of over 250m2. The purpose is to raise awareness of energy use in public buildings.

Routes must assess the requirements for a DEC and keep a register of sites and expiry dates.

For information on DEC requirements and useful definitions, please see the information sheet in the side-bar.  Further information can be found in the guidance note in the right hand menu.

Energy Performance Certificates (EPC)

Energy Performance Certificates (EPCs; figure 2) are required in all buildings available to buy or rent in the UK.  An EPC certificate provides information on a property’s energy performance, and ways to improve this, through an energy-efficiency rating system; the most efficient buildings, with the lowest fuel bills, are in band A.

The requirement for Network Rail’s buildings to display up-to-date EPCs is primarily the Property function’s responsibility; however Routes also need to be aware of EPCs. An EPC register should be in place to record EPCs and their expiry date.

More stringent requirements will shortly be introduced under the Minimum Energy Efficiency Standards (MEES) scheme, from April 2018, which will require all privately-rented properties must achieve a minimum energy rating of E on an Energy Performance Certificate. The Minimum Energy Efficiency Standards (MEES) will be phased in over a five year period from 2018 and require that buildings that are let or sold must have an EPC rating of E or better.

Further information on MEES can be found in the Energy Act 2011 attachment in the side-bar.

Heat Metering and Heat Networks

The Heat Metering and Heat Networks regulations apply to organisations that supply and sell heat, cooling or hot water to a final customer. Network Rail have declared the existence of heat networks to the UK Government and must now assess the feasibility of heat metering and, where cost effective and technically feasible, install heat meters and apply transparent charging structures.  The date from which final customer meters must be fitted, subject to cost-effective tests, will be detailed in the amended regulations planned for 2017.

The main heat networks are at Managed Stations so the Routes will need to ensure compliance. The Property function will also need to check compliance.

Further information can be found in in the information sheet in the side-bar.

Energy Performance Certificates (EPC)

Energy Performance Certificates (EPCs) are required in all buildings available to buy or rent in the UK.  An EPC certificate provides information on a property’s energy performance, and ways to improve this, through an energy-efficiency rating system; the most efficient buildings, with the lowest fuel bills, are in band A.

The requirement for Network Rail’s buildings to display up-to-date EPCs is primarily the Property function’s responsibility; however Routes also need to be aware of EPCs. An EPC register should be in place to record EPCs and their expiry date.

More stringent requirements will shortly be introduced under the Minimum Energy Efficiency Standards (MEES) scheme, from April 2018, which will require all privately-rented properties must achieve a minimum energy rating of E on an Energy Performance Certificate. The Minimum Energy Efficiency Standards (MEES) will be phased in over a five year period from 2018 and require that buildings that are let or sold must have an EPC rating of E or better.

Further information on MEES can be found in the Energy Act 2011 attachment in the side-bar.

Heat Metering and Heat Networks

The Heat Metering and Heat Networks regulations apply to organisations that supply and sell heat, cooling or hot water to a final customer. Network Rail have declared the existence of heat networks to the UK Government and must now assess the feasibility of heat metering and, where cost effective and technically feasible, install heat meters and apply transparent charging structures.  The date from which final customer meters must be fitted, subject to cost-effective tests, will be detailed in the amended regulations planned for 2017.

The main heat networks are at Managed Stations so the Routes will need to ensure compliance. The Property function will also need to check compliance.

Further information can be found in in the information sheet in the side-bar.

Further information:

For information on the role of the STE Energy Management Team please see the Organisation Information page.

Key contacts:

For general enquiries, please email sustainabledevelopment@networkrail.co.uk

For specific enquiries, please email Alan Bullock in the Energy Management Team.

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