From the implications of current legislation covering energy use to compliance with international rules governing nutrition labelling, we pose your legal questions to our experts in food law.
This month, we posed your queries to Alex Hill of consultancy ZTP and AOAC’s Erik Konings.
What implications are there for manufacturers from current legislation covering energy use?
Alex Hill is a co-founder of strategic energy management consultancy ZTP:
Two major pieces of energy legislation affecting UK businesses are the Carbon Reduction Commitment (CRC) and the Energy Saving Opportunity Scheme (ESOS). Additional legislation will see smart meters fitted across the UK by 2020, gas consumption monitored more closely through Project Nexus, and buildings with Energy Performance Certificate ratings of F and G become unlettable.
The CRC, requiring businesses consuming more than six gigawatt hours of energy per annum to report on their energy usage annually and purchase credits based on that consumption, will be removed from 2019.
CRC revenue will instead be generated through an increase in the Climate Change Levy (CCL) present on most commercial bills. As a result, UK businesses not exempt from paying CCL will see an increase in costs from 2019.
ESOS rules require firms with more than 250 employees, or an annual turnover exceeding £50m and a balance sheet exceeding £43m, to report on energy consumption every four years. Those not yet compliant, or that miss the 2019 reporting deadline will face fines of up to £50,000.
Food manufacturers that have not yet been required to, or have not been able to, develop energy management and reporting capabilities in-house will need to either train internal staff or engage with a consultancy.
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