Energy Management Agreement Template for England and Wales

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Key Requirements PROMPT example:

Energy Management Agreement

"I need an Energy Management Agreement for my manufacturing facility in Leeds, where we want to engage a service provider to reduce our energy consumption by 25% over three years, with specific performance guarantees and penalties for non-achievement of targets, starting from March 2025."

Document background
The Energy Management Agreement is utilized when organizations seek to optimize their energy consumption and reduce associated costs through professional management services. This contract type, governed by English and Welsh law, establishes a framework for implementing energy efficiency measures, monitoring consumption, and achieving specific performance targets. It includes provisions for regulatory compliance, particularly with UK energy legislation, and typically covers areas such as baseline energy consumption, reduction targets, monitoring systems, reporting requirements, and performance guarantees. The agreement is essential for organizations looking to meet sustainability goals while ensuring clear accountability and measurable outcomes.
Suggested Sections

1. Parties: Identifies the parties entering into the agreement, including full legal names and registered addresses

2. Background: Sets out the context and purpose of the agreement, including any relevant existing relationships

3. Definitions: Defines key terms used throughout the agreement including technical energy management terms

4. Scope of Services: Details the energy management services to be provided including monitoring, reporting, and optimization services

5. Term and Termination: Duration of the agreement and circumstances for termination, including any notice periods

6. Fees and Payment Terms: Payment structure, amounts, and schedule including any performance-based fees

7. Service Provider Obligations: Key responsibilities and commitments of the energy manager including compliance with relevant legislation

8. Client Obligations: Requirements and commitments from the client including providing access and information

9. Performance Standards: Required service levels and KPIs for energy management services

10. Governing Law and Jurisdiction: Confirms the agreement is governed by the laws of England and Wales

Optional Sections

1. Energy Savings Guarantee: Specific commitments regarding energy savings targets and related financial implications

2. Equipment Installation: Terms relating to installation, maintenance and ownership of energy management equipment

3. Carbon Reduction Commitments: Specific carbon reduction targets and obligations aligned with relevant legislation

4. Staff Training: Provisions for training client staff on energy management systems and practices

Suggested Schedules

1. Schedule 1 - Service Specification: Detailed description of energy management services to be provided

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, payment structure and any performance-related payments

3. Schedule 3 - Performance Metrics: Specific KPIs and measurement methodologies for energy management

4. Schedule 4 - Reporting Requirements: Format and frequency of energy performance reports

5. Schedule 5 - Site Details: Information about premises covered by the energy management agreement

6. Appendix A - Baseline Energy Consumption: Historical energy usage data and benchmarks for performance measurement

7. Appendix B - Equipment Specifications: Details of any energy management equipment to be installed or maintained

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries
Relevant Teams
Relevant Roles
Industries

Energy Act 2011: Primary legislation that provides framework for the Green Deal and addresses energy efficiency in buildings and security of energy supplies.

Energy Act 2013: Key legislation that established the legal framework for Electricity Market Reform and sets out provisions for nuclear regulation.

Climate Change Act 2008: Sets the framework for reducing greenhouse gas emissions and establishes carbon budgets for the UK.

Electricity Act 1989: Fundamental legislation governing electricity supply and generation in the UK.

Gas Act 1986: Primary legislation regulating the gas industry and supply in the UK.

Utilities Act 2000: Legislation that modified the regulatory framework for utilities and established the Gas and Electricity Markets Authority.

ESOS Regulations 2014: Energy Savings Opportunity Scheme regulations requiring large organizations to conduct regular energy assessments.

SECR Requirements: Streamlined Energy and Carbon Reporting framework requiring companies to report on energy usage and carbon emissions.

Energy Performance of Buildings Regulations 2012: Regulations governing energy performance certificates and assessments for buildings in England and Wales.

CRC Energy Efficiency Scheme: Carbon Reduction Commitment scheme aimed at improving energy efficiency in large organizations.

Consumer Rights Act 2015: Legislation protecting consumer rights in contracts and services, including energy services.

Unfair Contract Terms Act 1977: Regulates unfair terms in contracts and sets limits on exclusion clauses.

Supply of Goods and Services Act 1982: Legislation governing contracts for the supply of goods and services.

UK GDPR: UK General Data Protection Regulation governing the processing and protection of personal data.

Data Protection Act 2018: UK's implementation of data protection requirements, working alongside UK GDPR.

Electricity and Gas Internal Markets Regulations 2011: Regulations implementing EU directives on internal energy markets into UK law.

Electricity Standards of Performance Regulations 2015: Sets guaranteed standards of performance for electricity distribution companies.

Gas Standards of Performance Regulations 2005: Establishes performance standards for gas transporters and suppliers.

Health and Safety at Work Act 1974: Primary legislation for workplace health and safety, applicable to energy management activities.

Management of Health and Safety at Work Regulations 1999: Detailed regulations for managing health and safety in the workplace.

Ofgem Requirements: Regulatory requirements set by the Office of Gas and Electricity Markets for energy industry participants.

Energy Institute Standards: Professional standards and guidelines set by the Energy Institute for energy management practices.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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