Energy companies to undermine energy efficiency in buildings with draft legislation

Energy companies manipulate – how is this even possible today?

Finland is preparing a change in the way energy figures are calculated, which could revolutionise the way energy efficiency in buildings is measured and valued. Unfortunately, at the heart of the change is not a pure desire for climate action – but an energy lobby that threatens to water down the whole idea of energy efficiency and significantly increase energy bills in buildings.

What will change?

The forthcoming draft Energy Certificate Regulation proposes significant changes to the emission factors used to calculate energy forms. Under the new rules, the emission factors in an energy certificate can be calculated according to how “green” an energy company declares its district heating or electricity to be.

In practice, this means that a similar, energy inefficient building can have a different energy class depending on where it is located and what kind of district heat or electricity its supplier reports selling.

In other words, much more energy and money can be spent than is currently the case, while at the same time suggesting that the building could be the best Class A – rather perverse and even perverse.

The energy certificate no longer tells the truth

Energy efficiency should tell you how little energy a building uses and give an indication of how many euros are needed for energy – not what kind of marketing label energy gets. If an energy inefficient building can only achieve a good energy rating because the energy company declares its energy to be emission-free (even if actual consumption remains high), the whole system loses credibility.

This means that the design, insulation or building services engineering of a building is no longer a decisive factor. It is enough to buy “green” energy – whether or not its origin is genuinely emission-free. The energy performance certificate is transformed from a measure of a building’s performance into a tool for energy companies to greenwash.

Lobbying by energy companies is visible

The proposed change is not a coincidence. For years, energy operators have been trying to influence legislation to keep the energy sector in the Stone Age, unchanged and prevent healthy competition. Instead of investing in real energy efficiency or decentralised solutions, a lighter path is chosen: by influencing emission factors and building an image of greenness.

This development is dangerous because it misguides investments and decisions. A buyer, tenant or investor in a building may make a decision in good faith on the basis of an energy certificate, not knowing that the actual energy performance may be poor, which means that the energy costs of the building can be very high.

How should we react to this?

• The energy certificate should measure the characteristics of the building, not the brand of energy purchased.
• The energy certificate must be a guide to lower energy costs.
• Decision-makers are required to be critical and independent of the energy lobby.

Summary

Is the bill really about energy efficiency or just a business model for energy companies? On current representations, it seems that the latter has taken and the official has whined.

Author

Jere Kilpi, Director, Commercial Solutions

Director, Commercial Solutions

+358 40 451 3976

jere.kilpi@leasegreen.com