Directive 2006/32/EC of the European Parliament and of the Council of  5 April 2006  on energy end-use efficiency and energy services and repealing Council Directive 93/76/EEC   (Text with EEA relevance)
Date: 2006-04-05
Institutions: Council of the European Union, European Parliament
Subjects: drafting of EU law, energy consumption, energy production, energy saving, energy supply, renewable energy

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DIRECTIVE 2006/32/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

of 5 April 2006

on energy end-use efficiency and energy services and repealing Council Directive 93/76/EEC

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 175(1) thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Economic and
Social Committee (1),

Having regard to the opinion of
Regions (2),

the Committee of

the

Acting in accordance with the procedure laid down in
Article 251 of the Treaty (3),

Whereas:

(1)

In the Community there is a need for improved energy
end-use efficiency, managed demand for energy and
promotion of the production of renewable energy, as
there is relatively limited scope for any other influence
on energy supply and distribution conditions in the short
to medium term, either through the building of new
capacity or through the improvement of transmission
and distribution. This Directive
contributes
to improved security of supply.

thus

(2)

Improved energy end-use efficiency will also contribute
to the reduction of primary energy consumption, to the
mitigation of CO2 and other greenhouse gas emissions
and thereby to the prevention of dangerous climate
change. These emissions continue to increase, making it

(1) OJ C 120, 20.5.2005, p. 115.
(2) OJ C 318, 22.12.2004, p. 19.
(3) Opinion of the European Parliament of 7 June 2005 (not yet
published in the Official Journal), Council Common Position of
23 September 2005 (OJ C 275 E, 8.11.2005, p. 19) and Position
of the European Parliament of 13 December 2005 (not yet
published in the Official Journal), Council Decision of 14 March
2006.

more and more difficult to meet the Kyoto commitments.
Human activities attributed to the energy sector cause as
much as 78 % of
the Community greenhouse gas
emissions. The Sixth Community Environment Action
Programme, laid down by Decision No 1600/2002/EC of
the European Parliament and of the Council (4), envisages
that further reductions are required to achieve the United
Nations Framework Convention on Climate Change
long-term objective of stabilising greenhouse gas con-
centrations in the atmosphere at a level that would
prevent dangerous anthropogenic interference with the
climate system. Therefore, concrete policies and measures
are necessary.

(3)

Improved energy end-use efficiency will make it possible
to exploit potential cost-effective energy savings in an
economically efficient way. Energy efficiency improve-
ment measures could realise these energy savings and
thus help the Community reduce its dependence on
energy imports. Furthermore, a move towards more
energy-efficient technologies can boost the Community's
innovativeness and competitiveness as underlined in the
Lisbon strategy.

(4) The Communication from the Commission on the
implementation of
the European
Climate Change Programme listed a directive on energy
demand management as one of
the priority climate
change measures to be taken at Community level.

the first phase of

(5) This Directive is consistent with Directive 2003/54/EC of
the European Parliament and of the Council of 26 June
2003 concerning common rules for the internal market
in electricity (5) and with Directive 2003/55/EC of the
European Parliament and of the Council of 26 June 2003
concerning common rules for the internal market in
natural gas (6), which provide for the possibility of using
energy efficiency and demand-side management as
alternatives
to new supply and for environmental
protection, allowing Member State authorities, inter alia,
to tender for new capacity or to opt for energy efficiency
and demand‑side measures, including systems for white
certificates.

(4) OJ L 242, 10.9.2002, p. 1.
(5) OJ L 176, 15.7.2003, p. 37. Directive as amended by Council

Directive 2004/85/EC (OJ L 236, 7.7.2004, p. 10).

(6) OJ L 176, 15.7.2003, p. 57.

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(6) This Directive is without prejudice to Article 3 of
Directive 2003/54/EC, which requires
that Member
States ensure that all household customers and, where
Member States deem it appropriate, small enterprises,
enjoy universal service, that is the right to be supplied
with electricity of a specified quality within their territory
at
easily and clearly comparable, and
reasonable,
transparent prices.

(7) The aim of this Directive is not only to continue to
promote the supply side of energy services, but also to
create stronger incentives for the demand side. The
public sector in each Member State should thus set a
good example regarding investments, maintenance and
other expenditure on energy-using equipment, energy
energy efficiency improvement
services
and other
measures. Therefore,
should be
sector
the public
encouraged to integrate energy efficiency improvement
considerations into its investments, depreciation allow-
ances and operating budgets. Furthermore, the public
sector should endeavour to use energy efficiency criteria
for public procurement, a
in tendering procedures
the
practice allowed under Directive 2004/17/EC of
European Parliament and of the Council of 31 March
2004 coordinating the procurement procedures of
entities operating in the water, energy, transport and
postal services sectors (1) , and Directive 2004/18/EC of
the European Parliament and of the Council of 31 March
2004 on the coordination of procedures for the award of
public works contracts, public supply contracts and
public service contracts (2), the principle of which was
confirmed by the judgment of 17 September 2002 of the
Court of Justice in Case C-513/99 (3). In view of the fact
that administrative structures vary widely between
Member States, the different types of measures which
the public sector may take should be taken at
the
appropriate national, regional and/or local level.

(8) There is a large variety of ways in which the public sector
can fulfil
its exemplary role: besides the applicable
measures listed in Annex III and VI, the public sector
may, for example, initiate energy-efficiency pilot projects
and stimulate energy-efficient behaviour of employees. In
order to achieve the desired multiplier effect, a number of
such actions should be communicated in an effective way
to companies, whilst
to individual citizens and/or
emphasising the cost benefits.

(9) The liberalisation of the retail markets for final customers
for electricity, natural gas, coal and lignite, heating, and in
some cases even district heating and cooling, has almost
exclusively led to improved efficiency and lower costs on

(1) OJ L 134, 30.4.2004, p. 1. Directive as last amended by
Commission Regulation (EC) No 2083/2005 (OJ L 333,
20.12.2005, p. 28).

(2) OJ L 134, 30.4.2004, p. 114. Directive as last amended by

(3)

Regulation (EC) No 2083/2005.
C-513/99: Concordia Bus Finland Oy Ab, formerly Stagecoach
Finland Oy Ab v Helsingin kaupunki and HKL-Bussiliikenne
(2002 ECR I-7213).

liberalisation has not

the energy generation, transformation and distribution
side. This
led to significant
competition in products and services which could have
resulted in improved energy efficiency on the demand
side.

(10)

In its Resolution of 7 December 1998 on energy
efficiency in the European Community (4), the Council
endorsed a target for the Community as a whole to
improve energy intensity of final consumption by an
additional one percentage point per annum up to the
year 2010.

energy services,

(11) Member States should therefore adopt national indicative
targets to promote energy end‑use efficiency and to
ensure the continued growth and viability of the market
for
to the
and thus
implementation of the Lisbon strategy. The adoption of
national
indicative targets to promote energy end-use
efficiency provides effective synergy with other Commu-
nity legislation that will, when applied, contribute to the
achievement of those national targets.

contribute

(12) This Directive requires action to be undertaken by the
Member States, with the fulfilment of
its objectives
depending on the effects that such action has on the final
consumers of energy. The end result of Member States’
action is dependent on many external factors which
influence the behaviour of consumers as regards their
energy use and their willingness to implement energy
saving methods and use energy saving devices. Therefore,
even though Member States commit
themselves to
making efforts to achieve the target figure of 9 %, the
national energy savings target is indicative in nature and
entails no legally enforceable obligation for Member
States to achieve it.

(13)

In aiming to achieve their national
indicative target,
Member States may set themselves a target higher than
9 %.

(14) The improvement of energy efficiency will benefit from
an exchange of information, experience and best practice
at all levels, including, in particular, the public sector.
Therefore, Member States should list measures under-
taken in the context of this Directive, and review their
effect as far as possible, in energy efficiency action plans.

(15) When striving for energy efficiency on the basis of
technological, behavioural and/or economic changes,
impact should be
substantial negative environmental
avoided, and social priorities should be respected.

(4) OJ C 394, 17.12.1998, p. 1.

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(16) The funding of supply and the costs of the demand side
have an important role to play in energy services. The
creation of funds to subsidise the implementation of
energy efficiency programmes and other energy effi-
ciency improvement measures and to promote the
for energy services can
development of a market
constitute an appropriate tool for the provision of non-
discriminatory start-up funding in such a market.

(17)

Improved energy end-use efficiency can be achieved by
increasing the availability of and demand for energy
services or by other energy efficiency improvement
measures.

(18)

In order to realise the energy savings potential in certain
market segments where energy audits are generally not
sold commercially, such as households, Member States
should ensure the availability of energy audits.

(19) The Council Conclusions of 5 December 2000 list the
promotion of energy services through the development
of a Community strategy as a priority area for action to
improve energy efficiency.

(20) Energy distributors, distribution system operators and
retail energy sales companies can improve energy
efficiency in the Community if the energy services they
market include efficient end-use, such as indoor thermal
comfort, domestic hot water,
refrigeration, product
manufacturing,
illumination and motive power. Profit
maximisation for energy distributors, distribution system
operators and retail
thus
becomes more closely related to selling energy services
to as many customers as possible than to selling as much
energy as possible to each customer. Member States
should endeavour to avoid any distortion of competition
in this area, in order to guarantee a level playing field
between all energy service providers; they can, however,
delegate this task to the national regulator.

energy sales

companies

(21) Taking full account of

the national organisation of
market actors in the energy sector and in order to favour
the implementation of energy services and of
the
measures to improve energy efficiency provided for in
this Directive, Member States should have the option of
making it compulsory for energy distributors, distribu-
tion system operators or retail energy sales companies or,
where appropriate, for two or all of these market actors,
to provide such services and to participate in such
measures.

(23) With a view to making tariffs and other regulations for
net-bound energy more conducive to efficient energy
end-use, unjustifiable volume-driving incentives should
be removed.

(24) The promotion of the market for energy services can be
achieved by a variety of means, including non-financial
ones.

(25) The energy services, energy efficiency improvement
programmes and other energy efficiency improvement
measures put into effect to reach the energy savings
target may be supported and/or implemented through
voluntary agreements between stakeholders and public
sector bodies appointed by the Member States.

(26) The voluntary agreements which are covered by this
Directive should be transparent and contain, where
applicable, information on at least the following issues:
quantified and staged objectives, monitoring and report-
ing.

(27) The motor fuel and transport sectors have an important
role to play regarding energy efficiency and energy
savings.

(28)

In defining energy efficiency improvement measures,
account should be taken of efficiency gains obtained
through the widespread use of cost-effective technologi-
cal innovations, for instance electronic metering. In the
context of this Directive, competitively priced individual
meters include accurate calorimeters.

(29)

In order to enable final consumers to make better-
informed decisions as regards their individual energy
consumption, they should be provided with a reasonable
amount of information thereon and with other relevant
information, such as information on available energy
efficiency improvement measures, comparative final
consumer profiles or objective technical specifications
for energy-using equipment, which may include ‘Factor
Four’ or similar equipment. It is recalled that some such
valuable information should already be made available to
final customers under Article 3(6) of Directive 2003/54/
EC. In addition, consumers should be actively encour-
aged to check their own meter readings regularly.

(22) The use of

third-party financing arrangements is an
innovate practice that should be stimulated. In these, the
beneficiary avoids investment costs by using part of the
financial value of energy savings that result from the
to repay the third party's
third party's investment
investment and interest costs.

(30) All types of information relating to energy-efficiency
should be widely disseminated in an appropriate form,
including through billing, to relevant target audiences.
This can include information on financial and legal
frameworks, communication and promotion campaigns,
and the widespread exchange of best practice at all levels.

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(31) With the adoption of

this Directive, all substantive
provisions of Council Directive 93/76/EEC of 13 Sep-
tember 1993 to limit carbon dioxide emissions by
improving energy efficiency (SAVE) (1) are covered by
other Community legislation and therefore Directive 93/
76/EEC should be repealed.

(32) Since the objectives of this Directive, namely to promote
energy end-use efficiency and to develop a market for
energy services, cannot be sufficiently achieved by the
Member States and can be better achieved at Community
level, the Community may adopt measures,
in accor-
dance with the principle of subsidiarity as set out in
Article 5 of the Treaty. In accordance with the principle
of proportionality, as set out in that Article, this Directive
does not go beyond what is necessary in order to achieve
those objectives.

(33) The measures necessary for the implementation of this
Directive should be adopted in accordance with Council
Decision 1999/468/EC of 28 June 1999 laying down the
implementing powers
procedures for the exercise of
conferred on the Commission (2),

HAVE ADOPTED THIS DIRECTIVE:

CHAPTER I

SUBJECT MATTER AND SCOPE

Article 1

Purpose

The purpose of this Directive is to enhance the cost-effective
improvement of energy end-use efficiency in the Member
States by:

(a)

(b)

providing the necessary indicative targets as well as
mechanisms, incentives and institutional, financial and
legal frameworks to remove existing market barriers and
imperfections that impede the efficient end use of energy;

for
the development and
creating the
conditions
promotion of a market
for energy services and for
the delivery of other energy efficiency improvement
measures to final consumers.

Article 2

Scope

This Directive shall apply to:

(a)

(b)

(c)

providers of energy efficiency improvement measures,
energy distributors, distribution system operators and
retail energy sales companies. However, Member States
may exclude small distributors, small distribution system
operators and small retail energy sales companies from
the application of Articles 6 and 13;

final customers. However, this Directive shall not apply
to those undertakings involved in categories of activities
listed in Annex I
the
European Parliament and of the Council of 13 October
2003 establishing a scheme for greenhouse gas emission
allowance trading within the Community (3);

to Directive 2003/87/EC of

the armed forces, only to the extent that its application
does not cause any conflict with the nature and primary
aim of the activities of the armed forces and with the
exception of material used exclusively for military
purposes.

Article 3

Definitions

For the purposes of this Directive, the following definitions
shall apply:

(a)

‘energy’: all
forms of commercially available energy,
including electricity, natural gas
(including liquefied
natural gas), liquefied petroleum gas, any fuel for heating
and cooling (including district heating and cooling), coal
and lignite, peat, transport fuels (excluding aviation and
maritime bunker
fuels) and biomass as defined in
Directive 2001/77/EC of the European Parliament and
of the Council of 27 September 2001 on the promotion
of electricity produced from renewable energy sources in
the internal electricity market (4);

(b)

‘energy efficiency’: a ratio between an output of
performance, service, goods or energy, and an input of
energy;

(1) OJ L 237, 22.9.1993, p. 28.
(2) OJ L 184, 17.7.1999, p. 23.

(3) OJ L 275, 25.10.2003, p. 32. Directive as amended by Directive

2004/101/EC (OJ L 338, 13.11.2004, p. 18).

(4) OJ L 283, 27.10.2001, p. 33. Directive as amended by the 2003

Act of Accession.

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(c)

(d)

(e)

(f)

(g)

(h)

(i)

(j)

(k)

‘energy efficiency improvement’: an increase in energy
end-use efficiency as a result of technological, beha-
vioural and/or economic changes;

the energy
energy savings achieved as a result of
efficiency improvement measure. That third party may
or may not be an ESCO;

‘energy savings’: an amount of saved energy determined
by measuring and/or estimating consumption before and
after implementation of one or more energy efficiency
improvement measures, whilst ensuring normalisation
for external conditions that affect energy consumption;

‘energy service’:
the physical benefit, utility or good
derived from a combination of energy with energy
efficient
technology and/or with action, which may
include the operations, maintenance and control neces-
sary to deliver the service, which is delivered on the basis
of a contract and in normal circumstances has proven to
lead to verifiable and measurable or estimable energy
efficiency improvement and/or primary energy savings;

‘energy efficiency mechanisms’: general instruments used
by governments or government bodies to create a
supportive framework or incentives for market actors to
provide and purchase energy services and other energy
efficiency improvement measures;

focus on groups of

‘energy efficiency improvement programmes’: activities
that
final customers and that
normally lead to verifiable and measurable or estimable
energy efficiency improvement;

‘energy efficiency improvement measures’: all actions that
normally lead to verifiable and measurable or estimable
energy efficiency improvement;

‘energy service company’
(ESCO): a natural or legal
person that delivers energy services and/or other energy
efficiency improvement measures in a user's facility or
premises, and accepts some degree of financial risk in so
doing. The payment for the services delivered is based
(either wholly or in part) on the achievement of energy
efficiency improvements and on the meeting of the other
agreed performance criteria;

(l)

(m)

‘energy audit’: a systematic procedure to obtain adequate
knowledge of the existing energy consumption profile of
a building or group of buildings, of an industrial
operation and/or installation or of a private or public
identify and quantify cost‑effective
energy
service,
savings opportunities, and report the findings;

instruments for energy savings’: all financial
‘financial
instruments such as funds, subsidies, tax rebates, loans,
third-party financing, energy performance contracting,
guarantee of energy savings contracts, energy outsour-
cing and other related contracts that are made available
to the market place by public or private bodies in order
to cover partly or totally the initial project cost for
implementing energy efficiency improvement measures;

(n)

‘final customer’: a natural or legal person that purchases
energy for his own end use;

(o)

(p)

‘energy distributor’: a natural or legal person responsible
for transporting energy with a view to its delivery to final
customers and to distribution stations that sell energy to
final customers. This definition excludes electricity and
natural gas distribution system operators, covered in
point (p);

‘distribution system operator’: a natural or legal person
responsible for operating, ensuring the maintenance of
and, if necessary, developing the distribution system of
electricity or natural gas in a given area and, where
applicable, its interconnections with other systems, and
for ensuring the long term ability of the system to meet
reasonable demands for the distribution of electricity or
natural gas;

(q)

‘retail energy sales company’: a natural or legal person
that sells energy to final customers;

‘energy performance contracting’: a contractual arrange-
ment between the beneficiary and the provider (normally
an ESCO) of an energy efficiency improvement measure,
where investments in that measure are paid for in
relation to a contractually agreed level of energy
efficiency improvement;

(r)

‘small distributor, small distribution system operator and
small retail energy sales company’: a natural or legal
person that distributes or sells energy to final customers,
and that distributes or sells less than the equivalent of
75 GWh energy per year or employs fewer than 10
persons or whose annual turnover and/or annual balance
sheet total does not exceed EUR 2 000 000;

‘third-party financing’: a contractual arrangement invol-
ving a third party — in addition to the energy supplier
and the beneficiary of the energy efficiency improvement
measure — that provides the capital for that measure and
charges the beneficiary a fee equivalent to a part of the

(s)

‘white certificates’: certificates issued by independent
certifying bodies confirming the energy savings claims of
market actors as a consequence of energy efficiency
improvement measures.

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CHAPTER II

ENERGY SAVINGS TARGETS

Article 4

General target

1. Member States shall adopt and aim to achieve an overall
national indicative energy savings target of 9 % for the ninth
year of application of this Directive, to be reached by way of
energy services and other energy efficiency improvement
measures. Member States shall take cost-effective, practicable
and reasonable measures designed to contribute towards
achieving this target.

This national indicative energy savings target shall be set and
calculated in accordance with the provisions and methodology
set out in Annex I. For purposes of comparison of energy
savings and for conversion to a comparable unit,
the
conversion factors set out in Annex II shall apply unless the
use of other conversion factors can be justified. Examples of
eligible energy efficiency improvement measures are given in
Annex III. A general framework for the measurement and
verification of energy savings is given in Annex IV. The
national energy savings in relation to the national indicative
energy savings target shall be measured as from 1 January
2008.

shall

2.
For the purpose of the first Energy Efficiency Action Plan
(EEAP) to be submitted in accordance with Article 14, each
establish an intermediate national
Member State
indicative energy savings
the third year of
target
application of this Directive, and provide an overview of its
strategy for the achievement of the intermediate and overall
targets. This
shall be realistic and
consistent with the overall national indicative energy savings
target referred to in paragraph 1.

intermediate target

for

The Commission shall give an opinion on whether
intermediate national
consistent with the overall target.

the
indicative target appears realistic and

Each Member State shall draw up programmes and

3.
measures to improve energy efficiency.

4. Member States shall assign to one or more new or
existing authorities or agencies the overall control and
responsibility for overseeing the framework set up in relation
to the target mentioned in paragraph 1. These bodies shall
thereafter verify the energy savings as a result of energy
services and other energy efficiency improvement measures,
including existing national energy efficiency improvement
measures, and report the results.

5. After having reviewed and reported on the first three
years of application of this Directive, the Commission shall
examine whether it is appropriate to come forward with a
proposal
for a directive to further develop the market
approach in energy efficiency improvement by means of
white certificates.

Article 5

Energy end-use efficiency in the public sector

1. Member States shall ensure that the public sector fulfils an
exemplary role in the context of this Directive. To this end,
they shall communicate effectively the exemplary role and
actions of the public sector to citizens and/or companies, as
appropriate.

Member States shall ensure that energy efficiency improve-
ment measures are taken by the public sector, focussing on
cost-effective measures which generate the largest energy
savings in the shortest span of time. Such measures shall be
taken at the appropriate national, regional and/or local level,
and may consist of
legislative initiatives and/or voluntary
agreements, as referred to in Article 6(2)(b), or other schemes
with an equivalent effect. Without prejudice to national and
Community public procurement legislation:

— at least two measures shall be used from the list set out in

Annex VI;

— Member States shall facilitate this process by publishing
guidelines on energy efficiency and energy savings as a
possible assessment criterion in competitive tendering
for public contracts.

Member States shall facilitate and enable the exchange of best
practices between public sector bodies, for example on energy-
efficient public procurement practices, both at the national
and international level; to this end, the organisation referred to
in paragraph 2 shall cooperate with the Commission with
regard to the exchange of best practice as referred to in
Article 7(3).

2. Member States
shall assign to a new or existing
organisation or organisations the administrative, management
and implementing responsibility for the integration of energy
efficiency improvement requirements as set out in paragraph 1.
These may be the same authorities or agencies as those
referred to in Article 4(4).

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CHAPTER III

PROMOTION OF ENERGY END-USE EFFICIENCY AND
ENERGY SERVICES

(ii)

ensure the availability to their final customers, and
the promotion, of competitively-priced energy
audits conducted in an independent manner and/
or energy efficiency improvement measures,
in
accordance with Article 9(2) and Article 12; or

Article 6

Energy distributors, distribution system operators and
retail energy sales companies

1. Member States shall ensure that energy distributors,
retail energy sales
distribution system operators and/or
companies:

(b)

(a)

provide on request, but not more than once a year,
aggregated statistical
information on their final custo-
mers to the authorities or agencies referred to in Article 4
(4) or to another designated body, provided that the latter
in turn transmits to the former the information received.
This information must be sufficient to properly design
and implement energy efficiency improvement pro-
grammes, and to promote and monitor energy services
and other energy efficiency improvement measures. It
may include historical
information and must include
current information on end-user consumption, includ-
ing, where applicable, load profiles, customer segmenta-
tion and geographical
location of customers, while
preserving the integrity and confidentiality of informa-
tion that is either of private character or commercially
sensitive,
in compliance with applicable Community
legislation;

(b)

refrain from any activities that might impede the demand
for and delivery of energy services and other energy
efficiency improvement measures, or hinder the devel-
opment of markets for energy services and other energy
efficiency improvement measures. The Member State
concerned shall take the necessary measures to bring
such activities to an end where they occur.

2. Member States shall:

(iii) contribute to the funds and funding mechanisms
such
referred to in Article 11. The level of
contributions shall as a minimum correspond to
the estimated costs of offering any of the activities
referred to in this paragraph and shall be agreed
with the authorities or agencies referred to in
Article 4(4); and/or

ensure that voluntary agreements and/or other market-
oriented schemes, such as white certificates, with an
effect equivalent to one or more of the requirements
referred to in point (a) exist or are set up. Voluntary
agreements shall be assessed, supervised and followed up
by the Member State in order to ensure that they have in
practice an effect equivalent to one or more of the
requirements referred to in point (a).

To that end, the voluntary agreements shall have clear
and unambiguous objectives, and monitoring and
reporting requirements linked to procedures that can
lead to revised and/or additional measures when the
objectives are not achieved or are not
likely to be
achieved. With a view to ensuring transparency, the
voluntary agreements shall be made available to the
public and published prior to application to the extent
that applicable confidentiality provisions allow, and
contain an invitation for stakeholders to comment.

3. Member States shall ensure that
there are sufficient
incentives, equal competition and level playing fields for
market actors other than energy distributors, distribution
system operators and retail energy sales companies, such as
ESCOs, installers, energy advisors and energy consultants, to
independently offer and implement the energy services, energy
audits and energy efficiency improvement measures described
in paragraph 2(a)(i) and (ii).

(a)

choose one or more of the following requirements to be
complied with by energy distributors, distribution system
operators and/or retail energy sales companies, directly
and/or indirectly through other providers of energy
services or energy efficiency improvement measures:

4. Under paragraphs 2 and 3, Member States may place
responsibilities on distribution system operators only if this is
consistent with the requirements relating to the unbundling of
accounts laid down in Article 19(3) of Directive 2003/54/EC
and in Article 17(3) of Directive 2003/55/EC.

(i)

ensure the offer to their final customers, and the
promotion, of competitively priced energy services;
or

5. The implementation of
this Article shall be without
prejudice to derogations or exemptions granted under
Directives 2003/54/EC and 2003/55/EC.

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Article 7

Article 10

Availability of information

Energy efficient tariffs and other regulations for net-
bound energy

1. Member States shall ensure that information on energy
efficiency mechanisms and financial and legal frameworks
indicative
adopted with the aim of reaching the national
energy savings target is transparent and widely disseminated
to the relevant market actors.

2. Member States shall ensure that greater efforts are made
to promote energy end-use efficiency. They shall establish
appropriate conditions and incentives for market operators to
provide more information and advice to final customers on
energy end-use efficiency.

shall ensure the removal of

in transmission and distribution tariffs

those
1. Member States
incentives
that
unnecessarily increase the volume of distributed or trans-
mitted energy. In this respect, in accordance with Article 3(2)
of Directive 2003/54/EC and with Article 3(2) of Directive
2003/55/EC, Member States may impose public service
obligations relating to energy efficiency on undertakings
operating in the electricity and gas sectors respectively.

3. The Commission shall ensure that information on best
energy-saving practices in Member States is exchanged and
widely disseminated.

2. Member States may permit components of schemes and
tariff structures with a social aim, provided that any disruptive
effects on the transmission and distribution system are kept to
the minimum necessary and are not disproportionate to the
social aim.

Article 8

Article 11

Availability of qualification, accreditation and
certification schemes

Funds and funding mechanisms

With a view to achieving a high level of technical competence,
objectivity and reliability, Member States shall ensure, where
they deem it necessary,
the availability of appropriate
qualification, accreditation and/or certification schemes for
providers of energy services, energy audits and energy
efficiency improvement measures as referred to in Article 6
(2)(a) (i) and (ii).

Article 9

Financial instruments for energy savings

1. Member States shall repeal or amend national legislation
and regulations, other than those of a clearly fiscal nature, that
unnecessarily or disproportionately impede or restrict the use
of financial instruments for energy savings in the market for
energy services or other energy efficiency improvement
measures.

2. Member States shall make model contracts for those
financial
instruments available to existing and potential
purchasers of energy services and other energy efficiency
improvement measures in the public and private sectors.
These may be issued by the authority or agency referred to in
Article 4(4).

1. Without prejudice to Articles 87 and 88 of the Treaty,
Member States may establish a fund or funds to subsidise the
delivery of energy efficiency improvement programmes and
other energy efficiency improvement measures and to
promote the development of a market for energy efficiency
include the
improvement measures. Such measures shall
instruments for
promotion of energy auditing,
energy savings and, where appropriate,
improved metering
and informative billing. The funds shall also target end-use
sectors with higher transaction costs and higher risks.

financial

If established, the funds may provide for grants, loans,
financing that

2.
financial guarantees and/or other types of
guarantee results.

3. The funds shall be open to all providers of energy
efficiency improvement measures, such as ESCOs, indepen-
dent energy advisors, energy distributors, distribution system
operators,
retail energy sales companies and installers.
Member States may decide to open the funds to all final
customers. Tendering or equivalent methods which ensure
complete transparency shall be carried out in full compliance
with applicable public procurement
regulations. Member
States shall ensure that such funds complement, and do not
efficiency
compete with,
improvement measures.

commercially-financed energy

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Article 12

Energy audits

1. Member States shall ensure the availability of efficient,
high-quality energy audit schemes which are designed to
identify potential energy efficiency improvement measures
and which are carried out in an independent manner, to all
final consumers, including smaller domestic, commercial and
small and medium-sized industrial customers.

2. Market segments that have higher transaction costs and
non-complex facilities may be reached by other measures such
as questionnaires and computer programmes made available
on the Internet and/or sent to customers by mail. Member
States shall ensure the availability of energy audits for market
segments where they are not sold commercially, taking into
account Article 11(1).

the European Parliament and of

3. Certification in accordance with Article 7 of Direc-
tive 2002/91/EC of
the
Council of 16 December 2002 on the energy performance of
buildings (1) shall be regarded as equivalent to an energy audit
meeting the requirements set out in paragraphs 1 and 2 of this
Article and as equivalent to an energy audit as referred to in
Annex VI(e) to this Directive. Furthermore, audits resulting
from schemes based on voluntary agreements between
and an appointed body,
organisations of
supervised and followed up by the Member State concerned
in accordance with Article 6(2)(b) of this Directive, shall
likewise be considered as having fulfilled the requirements set
out in paragraphs 1 and 2 of this Article.

stakeholders

Article 13

Metering and informative billing of energy consumption

in so far as it

1. Member States shall ensure that,
is
technically possible, financially reasonable and proportionate
in relation to the potential energy savings, final customers for
electricity, natural gas, district heating and/or cooling and
domestic hot water are provided with competitively priced
individual meters that accurately reflect the final customer's
actual energy consumption and that provide information on
actual time of use.

When an existing meter is replaced, such competitively priced
individual meters shall always be provided, unless this is
technically impossible or not cost-effective in relation to the
estimated potential savings in the long term. When a new

connection is made in a new building or a building undergoes
major renovations, as set out in Directive 2002/91/EC, such
competitively priced individual meters
shall always be
provided.

2. Member States shall ensure that, where appropriate,
billing performed by energy distributors, distribution system
operators and retail energy sales companies is based on actual
energy consumption, and is presented in clear and under-
standable terms. Appropriate information shall be made
available with the bill to provide final customers with a
comprehensive account of current energy costs. Billing on the
basis of actual consumption shall be performed frequently
enough to enable customers to regulate their own energy
consumption.

3. Member States shall ensure that, where appropriate, the
following information is made available to final customers in
clear and understandable terms by energy distributors,
distribution system operators or retail energy sales companies
in or with their bills, contracts, transactions, and/or receipts at
distribution stations:

(a)

current actual prices and actual consumption of energy;

(b)

comparisons of
the final customer's current energy
consumption with consumption for the same period in
the previous year, preferably in graphic form;

(c) wherever possible and useful, comparisons with an
average normalised or benchmarked user of energy in the
same user category;

(d)

contact information for consumers’ organisations, energy
agencies or similar bodies, including website addresses,
from which information may be obtained on available
energy efficiency improvement measures, comparative
end-user profiles and/or objective technical specifications
for energy-using equipment.

CHAPTER IV

FINAL PROVISIONS

Article 14

Reports

1. Member States that already use, for whatever purpose,
calculation methods for measuring energy savings similar to
those described in Annex IV at the time of the entry into force
of this Directive may submit information at the appropriate
level of detail to the Commission. Such submissions shall take
than
soon as possible, preferably not
place
17 November 2006. This information will enable the

later

as

(1) OJ L 1, 4.1.2003, p. 65.

Commission to take due account of existing practices.

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2. Member States shall submit
following EEAPs:

to the Commission the

— a first EEAP not later than 30 June 2007;

5. On the basis of the EEAPs, the Commission shall assess
to which Member States have made progress
the extent
towards achieving their national
indicative energy savings
targets. The Commission shall publish reports with its
conclusions:

— a second EEAP not later than 30 June 2011;

— on the first EEAPs before 1 January 2008;

— a third EEAP not later than 30 June 2014.

— on the second EEAPs before 1 January 2012;

All EEAPs shall describe the energy efficiency improvement
measures planned to reach the targets set out in Article 4(1)
and (2), as well as to comply with the provisions on the
the public sector and provision of
exemplary role of
information and advice to final customers
in
Articles 5(1) and 7(2) respectively.

set out

The second and third EEAPs shall:

— include a thorough analysis and evaluation of

the

preceding EEAP;

— include the final results with regard to the fulfilment of
the energy savings targets set out in Article 4(1) and (2);

— include plans for — and information on the anticipated
effects of — additional measures which address any
existing or expected shortfall vis-à-vis the target;

— in accordance with Article 15(4), use and gradually
increase the use of harmonised efficiency indicators and
benchmarks, both for the evaluation of past measures
and estimated effects of planned future measures;

— be based on available data, supplemented with estimates.

3. Not later than 17 May 2008, the Commission shall
publish a cost/benefit
impact assessment examining the
linkages between EU standards, regulations, policies and
measures on end‑use energy efficiency.

4. The EEAPs shall be assessed in accordance with the
procedure referred to in Article 16(2):

— the first EEAPs shall be reviewed before 1 January 2008;

— the second EEAPs shall be reviewed before 1 January

2012;

— the third EEAPs shall be reviewed before 1 January 2015.

— on the third EEAPs before 1 January 2015.

These reports shall include information on related action at
Community level, including legislation currently in force and
future legislation. The reports shall take into account the
benchmarking system referred to in Article 15(4), identify best
identify cases where Member States and/or the
practices,
Commission are not making enough progress, and may
contain recommendations.

The second report shall be followed, as appropriate and where
necessary, by proposals to the European Parliament and to the
Council for additional measures including a possible extension
of the period of application of targets. If the report concludes
that insufficient progress has been made towards achieving the
national indicative targets, these proposals shall address the
level and nature of the targets.

Article 15

Review and adaptation of the framework

1. The values and calculation methods
referred to in
Annexes II, III, IV and V shall be adapted to technical progress
in accordance with the procedure referred to in Article 16(2).

2. Before 1 January 2008, the Commission, in accordance
with the procedure referred to in Article 16(2), shall further
refine and complement as required points 2 to 6 of Annex IV,
whilst respecting the general framework set out in Annex IV.

3. Before 1 January 2012, the Commission, in accordance
with the procedure referred to in Article 16(2), shall raise the
percentage of harmonised bottom-up calculations used in the
harmonised calculation model referred to in point 1 of
Annex IV, without prejudice to those Member State schemes
that already use a higher percentage. The new harmonised
calculation model with a significantly higher percentage of
bottom-up calculations shall first be used as from 1 January
2012.

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Wherever practicable and possible, the measurement of total
savings over the total period of application of the Directive
shall use this harmonised calculation model, without prejudice
to those Member State schemes that use a higher percentage of
bottom-up calculations.

Article 17

Repeal

later

the Commission,

than 30 June 2008,

4. Not
in
accordance with the procedure set out in Article 16(2), shall
develop a set of harmonised energy efficiency indicators and
benchmarks based upon them, taking into account available
data or data that can be collected in a cost-effective manner for
each Member State. For the development of these harmonised
energy efficiency indicators and benchmarks the Commission
shall use as a reference guide the indicative list set out in
Annex V. Member States shall gradually integrate these
indicators and benchmarks into the statistical data included
in their EEAPs as referred to in Article 14, and use them as one
of the tools at their disposal to decide on future priority areas
in the EEAPs.

Not later than 17 May 2011, the Commission shall present to
the European Parliament and the Council a report on the
progress in setting indicators and benchmarks.

Article 16

Committee

Directive 93/76/EEC is hereby repealed.

Article 18

Transposition

1. Member States shall bring into force the laws, regulations
and administrative provisions necessary to comply with this
Directive not later than 17 May 2008, with the exception of
the provisions of Article 14(1), (2) and (4), for which the date
of transposition shall be, at the latest 17 May 2006. They shall
forthwith inform the Commission thereof.

When Member States adopt these measures, they shall contain
a reference to this Directive or shall be accompanied by such
reference on the occasion of their official publication. The
methods of making such reference shall be laid down by
Member States.

2. Member States shall communicate to the Commission the
text of the main provisions of national law which they adopt
in the field covered by this Directive.

Article 19

Entry into force

1. The Commission shall be assisted by a Committee.

This Directive shall enter into force on the 20th day following
its publication in the Official Journal of the European Union.

2. Where reference is made to this paragraph, Articles 5 and
7 of Decision 1999/468/EC shall apply, having regard to the
provisions of Article 8 thereof.

The period laid down in Article 5(6) of Decision 1999/468/EC
shall be set at three months.

Article 20

Addressees

This Directive is addressed to the Member States.

Done at Strasbourg, 5 April 2006.

For the European Parliament

For the Council

The President

The President

3. The Committee shall adopt its rules of procedure.

J. BORRELL FONTELLES

H. WINKLER

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ANNEX I

Methodology for calculating the national indicative energy savings target

The methodology used for calculating the national indicative energy savings target set out in Article 4 shall be the
following:

1. Member States shall use the annual final inland energy consumption of all energy users within the scope of this
Directive for the most recent five-year period previous to the implementation of this Directive for which official
data are available, to calculate an annual average amount of consumption. This final energy consumption shall
be the amount of energy distributed or sold to final customers during the five-year period, not adjusted for
degree days, structural changes or production changes.

On the basis of this annual average amount of consumption, the national indicative energy savings target shall
be calculated once and the resulting absolute amount of energy to be saved applied for the total duration of this
Directive.

The national indicative energy savings target shall:

(a)

consist of 9 % of the annual average amount of consumption referred to above;

(b)

be measured after the ninth year of application of this Directive;

(c)

be the result of cumulative annual energy savings achieved throughout the nine-year application period of
this Directive;

(d)

be reached by way of energy services and other energy efficiency improvement measures.

2.

3.

This methodology for measuring energy savings ensures that the total energy savings prescribed by this
Directive are a fixed amount, and thus independent of future GDP growth and of any future increase in energy
consumption.

The national indicative energy savings target shall be expressed in absolute terms in GWh, or equivalent,
calculated in accordance with Annex II.

Energy savings in a particular year following the entry into force of this Directive that result from energy
efficiency improvement measures initiated in a previous year not earlier than 1995 and that have a lasting effect
may be taken into account in the calculation of the annual energy savings. In certain cases, where circumstances
can justify it, measures initiated before 1995 but not earlier than 1991 may be taken into account. Measures of a
technological nature should either have been updated to take account of technological progress, or be assessed
in relation to the benchmark for such measures. The Commission shall provide guidelines on how the effect of
all such energy efficiency improving measures should be measured or estimated, based, wherever possible, on
existing Community legislation, such as Directive 2004/8/EC of the European Parliament and of the Council of
11 February 2004 on the promotion of cogeneration based on a useful heat demand in the internal energy
market (1) and Directive 2002/91/EC.

In all cases, the resulting energy savings must still be verifiable and measurable or estimable, in accordance with
the general framework in Annex IV.

(1)

OJ L 52, 21.2.2004, p. 50.

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ANNEX II

Energy content of selected fuels for end use — conversion table (1)

Energy commodity

kJ (NCV)

kgoe (NCV)

kWh (NCV)

1 kg coke

1 kg hard coal

28 500

0,676

7,917

17 200 — 30 700

0,411 — 0,733

4,778 — 8,528

1 kg brown coal briquettes

20 000

0,478

5,556

1 kg black lignite

1 kg brown coal

1 kg oil shale

1 kg peat

10 500 — 21 000

0,251 — 0,502

2,917 — 5,833

5 600 — 10 500

0,134 — 0,251

1,556 — 2,917

8 000 — 9 000

0,191 — 0,215

2,222 — 2,500

7 800 — 13 800

0,186 — 0,330

2,167 — 3,833

1 kg peat briquettes

16 000 — 16 800

0,382 — 0,401

4,444 — 4,667

1 kg residual fuel oil (heavy oil)

1 kg light fuel oil

1 kg motor spirit (petrol)

1 kg paraffin

1 kg liquefied petroleum gas

1 kg natural gas (1)

1 kg liquefied natural gas

1 kg wood (25 % humidity) (2)

1 kg pellets/wood bricks

1 kg waste

1 MJ derived heat

1 kWh electrical energy

Source: Eurostat.

40 000

42 300

44 000

40 000

46 000

47 200

45 190

13 800

16 800

0,955

1,010

1,051

0,955

1,099

1,126

1,079

0,330

0,401

11,111

11,750

12,222

11,111

12,778

13,10

12,553

3,833

4,667

7 400 — 10 700

0,177 — 0,256

2,056 — 2,972

1 000

3 600

0,024

0,086

0,278

1 (3)

(1) 93 % methane.
(2) Member States may apply other values depending on the type of wood most used in the respective Member State.
(3)

For savings in kWh electricity Member States may apply a default co-efficient of 2,5 reflecting the estimated 40 % average EU
generation efficiency during the target period. Member States may apply a different co-efficient provided they can justify it.

(1)

Member States may apply different conversion factors if these can be justified.

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ANNEX III

Indicative list of examples of eligible energy efficiency improvement measures

This Annex provides examples of areas in which energy efficiency improvement programmes and other energy
efficiency improvement measures may be developed and implemented in the context of Article 4.

To be taken into account, these energy efficiency improvement measures must result in energy savings that can be
clearly measured and verified or estimated in accordance with the guidelines in Annex IV, and their impacts on energy
savings must not already be counted in other specific measures. The following lists are not exhaustive but are intended
to provide guidance.

Examples of eligible energy efficiency improvement measures:

Residential and tertiary sectors

(a)

(b)

heating and cooling (e.g. heat pumps, new efficient boilers, installation/efficient update of district heating/
cooling systems);

insulation and ventilation (e.g. wall cavity and roof insulation, double/triple glazing of windows, passive heating
and cooling);

(c)

hot water (e.g. installation of new devices, direct and efficient use in space heating, washing machines);

(d)

lighting (e.g. new efficient bulbs and ballasts, digital control systems, use of motion detectors for lighting
systems in commercial buildings);

(e)

cooking and refrigeration (e.g. new efficient devices, heat recovery systems);

(f)

other equipment and appliances (e.g. combined heat and power appliances, new efficient devices, time control
for optimised energy use, stand-by loss reduction,
installation of capacitors to reduce reactive power,
transformers with low losses);

(g)

domestic generation of renewable energy sources, whereby the amount of purchased energy is reduced (e.g.
solar thermal applications, domestic hot water, solar-assisted space heating and cooling);

Industry sector

(h)

product manufacturing processes (e.g. more efficient use of compressed air, condensate and switches and valves,
use of automatic and integrated systems, efficient stand-by modes);

(i) motors and drives (e.g. increase in the use of electronic controls, variable speed drives, integrated application

programming, frequency conversion, electrical motor with high efficiency);

(j)

fans, variable speed drives and ventilation (e.g. new devices/systems, use of natural ventilation);

(k)

demand response management (e.g. load management, peak shaving control systems);

(l)

high-efficiency cogeneration (e.g. combined heat and power appliances);

Transport sector

(m) mode of travel used (e.g. promotion of energy-efficient vehicles, energy-efficient use of vehicles including tyre
pressure adjustment schemes, energy efficiency devices and add-on devices for vehicles, fuel additives which
improve energy efficiency, high-lubricity oils and low-resistance tyres);

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(n) modal shifts of travel (e.g. car free home/office transportation arrangements, car sharing, modal shifts from
more energy-consuming modes of transport to less energy-consuming ones, per passenger-km or tonne-km);

(o)

car-free days;

Cross-sectoral measures

(p)

standards and norms that aim primarily at improving the energy efficiency of products and services, including
buildings;

(q)

energy labelling schemes;

(r) metering,

intelligent metering systems such as individual metering instruments managed by remote, and

informative billing;

(s)

training and education that lead to application of energy-efficient technology and/or techniques;

Horizontal measures

(t)

regulations, taxes etc. that have the effect of reducing energy end-use consumption;

(u)

focused information campaigns
improvement measures.

that promote energy efficiency improvement and energy efficiency

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ANNEX IV

General framework for measurement and verification of energy savings

1.

Energy savings measurements and calculations and their normalisation

1.1. Measuring energy savings

G e n e r a l

In measuring the realised energy savings as set out in Article 4 with a view to capturing the overall improvement
in energy efficiency and to ascertaining the impact of individual measures, a harmonised calculation model
which uses a combination of top-down and bottom-up calculation methods shall be used to measure the annual
improvements in energy efficiency for the EEAPs referred to in Article 14.

In developing the harmonised calculation model in accordance with Article 15(2), the Committee shall aim to
use, to the extent possible, data which are already routinely provided by Eurostat and/or the national statistical
agencies.

To p - d o w n c a l c u l a t i o n s

A top-down calculation method means that the amount of energy savings is calculated using the national or
larger-scale aggregated sectoral levels of energy savings as the starting point. Adjustments of the annual data are
then made for extraneous factors such as degree days, structural changes, product mix, etc. to derive a measure
that gives a fair indication of total energy efficiency improvement, as described in point 1.2. This method does
not provide exact measurements at a detailed level nor does it show cause and effect relationships between
measures and their resulting energy savings. However, it is usually simpler and less costly and is often referred to
as ‘energy efficiency indicators’ because it gives an indication of developments.

In developing the top-down calculation method used in this harmonised calculation model, the Committee shall
base its work, to the extent possible, on existing methodologies such as the ODEX model (1).

B o t t o m - u p c a l c u l a t i o n s

A bottom-up calculation method means that energy savings obtained through the implementation of a specific
energy efficiency improvement measure are measured in kilowatt-hours (kWh), in Joules (J) or in kilogram oil
equivalent (kgoe) and added to energy savings results from other specific energy efficiency improvement
measures. The authorities or agencies referred to in Article 4(4) will ensure that double counting of energy
savings, which results from a combination of energy efficiency improvement measures (including mechanisms),
is avoided. For the bottom-up calculation method, data and methods referred to in points 2.1 and 2.2 may be
used.

Before 1 January 2008, the Commission shall develop a harmonised bottom-up model. This model shall cover a
level between 20 and 30 % of the annual final inland energy consumption for sectors falling within the scope of
this Directive, subject to due consideration of the factors referred to in points (a), (b) and (c) below.

Until 1 January 2012, the Commission shall continue to develop this harmonised bottom-up model, which shall
cover a significantly higher level of the annual final inland energy consumption for sectors falling within the
scope of this Directive, subject to due consideration of the factors referred to in points (a), (b) and (c) below.

(1)

ODYSSEE-MURE Project, SAVE Programme. Commission 2005.

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In the development of the harmonised bottom-up model, the Commission shall take the following factors into
account and justify its decision accordingly:

(a)

experience with the harmonised calculation model during its first years of application;

(b)

expected potential increase in accuracy as a result of a larger share of bottom-up calculations;

(c)

estimated potential added cost and/or administrative burden.

In developing this harmonised bottom-up model in accordance with Article 15(2), the Committee shall aim to
use standardised methods which entail a minimum of administrative burden and cost, notably by using the
measurement methods referred to in points 2.1 and 2.2 and by focusing on those sectors where the harmonised
bottom-up model can be most cost efficiently applied.

Member States that so wish may use further bottom-up measurements in addition to the part prescribed by the
harmonised bottom-up model subject to the agreement of the Commission, in accordance with the procedure
referred to in Article 16(2), on the basis of a description of the methodology presented by the Member State
concerned.

If bottom-up calculations are not available for certain sectors, top-down indicators or mixtures of top-down and
bottom-up calculations shall be used in the reports to the Commission, subject to the agreement of the
Commission, in accordance with the procedure referred to in Article 16(2). In particular, when assessing
requests to this effect within the context of the first EEAP described in Article 14(2), the Commission shall
demonstrate the appropriate flexibility. Some top-down calculations will be necessary to measure the impact of
measures implemented after 1995 (and in certain cases as early as 1991) that continue to have impact.

1.2. How energy savings measurements should be normalised

Energy savings shall be determined by measuring and/or estimating consumption, before and after the
implementation of
the measure, while ensuring adjustment and normalisation for external conditions
commonly affecting energy use. Conditions commonly affecting energy use may also differ over time. Such
conditions may be the likely impact of one or several plausible factors, such as:

(a) weather conditions, such as degree days;

(b)

occupancy levels;

(c)

opening hours for non-domestic buildings;

(d)

installed equipment intensity (plant throughput); product mix;

(e)

plant throughput, level of production, volume or added value, including changes in GDP level;

(f)

schedules for installation and vehicles;

(g)

relationship with other units.

2. Data and methods that may be used (measurability)

Several methods for collecting data to measure and/or estimate energy savings exist. At the time of the
evaluation of an energy service or energy efficiency improvement measure, it will often be impossible to rely
only on measurements. A distinction is therefore made between methods measuring energy savings and
methods estimating energy savings, where the latter is the more common practice.

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2.1. Data and methods based on measurements

B i l l s f r o m d i s t r i b u t i o n c o m p a n i e s o r r e t a i l e r s

Metered energy bills may form the basis for measurement for a representative period before the introduction of
the energy efficiency improvement measure. These may then be compared to metered bills for the period after
the introduction and use of the measure, also for a representative period of time. The findings should be
compared to a control group (non-participation group) if possible or, alternatively, normalised as described in
point 1.2.

E n e r g y s a l e s d a t a

The consumption of different types of energy (e.g. electricity, gas, heating oil) may be measured by comparing
the sales data from the retailer or distributor obtained before the introduction of the energy efficiency
improvement measures with the sales data from the time after the measure. A control group may be used or the
data normalised.

E q u i p m e n t a n d a p p l i a n c e s a l e s d a t a

Performance of equipment and appliances may be calculated on the basis of information obtained directly from
the manufacturer. Data on equipment and appliance sales can generally be obtained from the retailers. Special
surveys and measurements may also be carried out. The accessible data can be checked against sales figures to
determine the size of energy savings. When using this method, adjustment should be made for changes in the
use of the equipment or appliance.

E n d - u s e l o a d d a t a

Energy use of a building or facility can be fully monitored to record energy demand before and after the
introduction of an energy efficiency improvement measure. Important relevant factors (e.g. production process,
special equipment, heating installations) may be metered more closely.

2.2. Data and methods based on estimates

S i m p l e e n g i n e e r i n g e s t i m a t e d d a t a : N o n - i n s p e c t i o n

Simple engineering estimated data calculation without on-site inspection is the most common method for
obtaining data for measuring deemed energy savings. Data may be estimated using engineering principles,
without using on-site data, but with assumptions based on equipment
specifications, performance
characteristics, operation profiles of measures installed and statistics, etc.

E n h a n c e d e n g i n e e r i n g e s t i m a t e d d a t a : I n s p e c t i o n

Energy data may be calculated on the basis of information obtained by an external expert during an audit of, or
other type of visit to, one or several targeted sites. On this basis, more sophisticated algorithms/simulation
models could be developed and be applied to a larger population of sites (e.g. buildings, facilities, vehicles). This
type of measurement can often be used to complement and calibrate simple engineering estimated data.

3. How to deal with uncertainty

All the methods listed in point 2 may entail some degree of uncertainty. Uncertainty may derive from (1):

(a)

instrumentation errors: these typically occur because of errors in specifications given by the product
manufacturer;

(1)

A model for establishing a level of quantifiable uncertainty based on these three errors is given in Appendix B in the
International Performance Measurement & Verification Protocol (IPMVP).

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(b) modelling errors: these typically refer to errors in the model used to estimate parameters for the data

collected;

(c)

sampling errors: these typically refer to errors resulting from the fact that a sample of units was observed
rather than the entire set of units under study.

Uncertainty may also derive from planned and unplanned assumptions; these are typically associated with
estimates, stipulations and/or the use of engineering data. The occurrence of errors is also related to the chosen
system of data collection that is outlined in points 2.1 and 2.2. A further specification of uncertainty is advised.

Member States may choose to use the method of quantified uncertainty when reporting on the targets set out in
this Directive. Quantified uncertainty shall then be expressed in a statistically meaningful way, declaring both
accuracy and confidence level. For example, ‘the quantifiable error is found with 90 % confidence to be ± 20 %’.

If the method of quantified uncertainty is used, Member States are also to take into account that the acceptable
level of uncertainty required in energy savings calculations is a function of the level of savings and the cost-
effectiveness of decreasing uncertainty.

4. Harmonised lifetimes of energy efficiency improvement measures in bottom-up calculations

Some energy efficiency improvement measures last for decades while other measures last for a shorter period of
time. The list below gives some examples of the average lifetime of energy efficiency improvement measures:

Loft insulation of private dwellings

Cavity wall insulation of private dwellings

Glazing E to C rated (in m2)

Boilers B to A rated

Heating controls — upgrade with boiler replacement

CFLs — retail

Source: Energy Efficiency Commitment 2005 — 2008, UK

30 years

40 years

20 years

15 years

15 years

16 years

To ensure that all Member States apply the same lifetimes for similar measures, these lifetimes will be
harmonised on a European level. The Commission, assisted by the Committee established under Article 16, shall
therefore replace the above list with an agreed preliminary list of the average lifetime of different energy
efficiency improvement measures not later than 17 November 2006.

5. How to deal with multiplier effects of energy savings and how to avoid double counting in mixed top-

down and bottom-up calculation methods

The implementation of one energy efficiency improvement measure, e.g. hot water tank and pipe insulation in a
building, or another measure with equivalent effect, may have future multiplier effects in the market, meaning
that the market will implement a measure automatically without any further involvement from the authorities
or agencies referred to in Article 4(4) or any private-sector energy services provider. A measure with multiplier
potential would in most cases be more cost-effective than measures that need to be repeated on a regular basis.
Member States shall estimate the energy savings potential of such measures including their multiplier effects and
verify the total effects in an ex-post evaluation using indicators when appropriate.

With regard to the evaluation of horizontal measures, energy efficiency indicators may be used, provided that
the way in which they would have developed without the horizontal measures can be determined. However, it
must be possible to rule out, as far as possible, double counting with savings achieved through targeted energy
efficiency programmes, energy services and other policy instruments. This applies particularly to energy or CO2
taxes and information campaigns.

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Corrections shall be made for double counting of energy savings. The use of matrices that enable the
summation of impacts of measures is encouraged.

Potential energy savings resulting after the target period shall not be taken into account when Member States
report on the overall target set out in Article 4. Measures that promote long-term market effects should in any
case be encouraged and measures that have already resulted in multiplier energy savings effects should be taken
into account when reporting on the targets set out in Article 4, provided they can be measured and verified
using the guidance given in this Annex.

6. How to verify energy savings

If deemed cost-effective and necessary, the energy savings obtained through a specific energy service or other
energy efficiency improvement measure shall be verified by a third party. This may be done by independent
consultants, ESCOs or other market actors. The appropriate Member State authorities or agencies referred to in
Article 4(4) may provide further instructions on this matter.

Sources: A European Ex-post Evaluation Guidebook for DSM and EE Service Programmes; IEA, INDEEP database;
IPMVP, Volume 1 (Version March 2002).

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ANNEX V

Indicative list of energy conversion markets and sub-markets for which benchmarks can be worked out:

1.

The market for household appliances/information technology and lighting:

1.1. Kitchen appliances (white goods);

1.2. Entertainment/information technology;

1.3. Lighting.

2.

The market for domestic heating technology:

2.1. Heating;

2.2. Hot-water provision;

2.3. Air conditioning;

2.4. Ventilation;

2.5. Heat insulation;

2.6. Windows.

3.

4.

5.

The market for industrial ovens.

The market for motorised power in industry.

The market for public-sector institutions:

5.1. Schools/public administration;

5.2. Hospitals;

5.3. Swimming pools;

5.4. Street lighting.

6.

The market for transport services.

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ANNEX VI

List of eligible energy efficient public procurement measures

Without prejudice to national and Community public procurement legislation, Member States shall ensure that the
public sector applies at least two requirements from the following list in the context of the exemplary role of the
public sector as referred to in Article 5:

(a)

(b)

(c)

requirements concerning the use of financial instruments for energy savings, including energy performance
contracting, that stipulate the delivery of measurable and pre-determined energy savings (including whenever
public administrations have outsourced responsibilities);

requirements to purchase equipment and vehicles based on lists of energy-efficient product specifications of
different categories of equipment and vehicles to be drawn up by the authorities or agencies referred to in
Article 4(4), using, where applicable, minimised life-cycle cost analysis or comparable methods to ensure cost-
effectiveness;

requirements to purchase equipment that has efficient energy consumption in all modes, including in standby
mode, using, where applicable, minimised life-cycle cost analysis or comparable methods to ensure cost-
effectiveness;

(d)

requirements to replace or retrofit existing equipment and vehicles with the equipment listed in points (b) and
(c);

(e)

requirements to use energy audits and implement the resulting cost-effective recommendations;

(f)

requirements to purchase or rent energy-efficient buildings or parts thereof, or requirements to replace or
retrofit purchased or rented buildings or parts thereof in order to render them more energy-efficient.