Dept for Business, Energy and Industry Strategy (BEIS)

Energy efficiency scheme for small and medium sized businesses: call for evidence

This consultation has concluded. The original consultation by BEIS was seeking views on proposals for an energy efficiency scheme focused on smaller businesses.

While no decision on the final delivery model has been taken, the BEIS has published an expression of interest on research into auction design, and an invitation to tender on 17 June 2020.

Although the Department for Business, Energy and Industrial Strategy (BEIS) has extensive experience of running an energy efficiency obligation through the domestic Energy Company Obligation (ECO), they have less experience of energy efficiency auctions, which is why they are commissioning further research. This research will form part of the evidence base that enables BEIS to decide which model should be taken forward to full public consultation.

They received 50 responses from various stakeholders including:

  • trade associations
  • energy companies
  • businesses in the supply chain
  • consultancies
  • local authorities

The call for evidence posed broad questions around 3 illustrative delivery options to promote take up of energy saving measures in SMEs, as well as asking if there was anything else they should consider. The 3 options were:

  • a new supplier obligation
  • an energy efficiency auction
  • expanding access to finance

Key themes that came up in responses, regardless of the delivery model for the scheme, included:

  • the scheme must be simple otherwise SMEs won’t participate
  • non-domestic buildings are very varied, and a one size fits all approach won’t work. A bespoke package would be needed for the diverse types of building occupied by small businesses

Read more: Energy efficiency scheme for small and medium sized businesses: call for evidence