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    Piemonte Region
    Participant

    Eurostat’s view is that the principle of proportionality is fundamental to the EPC provisions that deal with the performance of the EPC assets in delivering guaranteed savings. This means that the Partner’s liability for a savings shortfall must be proportional (or over-proportional) to the proportion of guaranteed savings that have been achieved. If an EPC does not comply with this principle of proportionality it will be automatically ON BALANCE SHEET for government.
    Eurostat’s view is that any provision that caps the Partner’s liability for the full amount of any savings shortfalls undermines the principle of proportionality, therefore does influence the statistical treatment and automatically leads to the EPC being ON BALANCE SHEET for government.
    Eurostat’s view is that there are two different approaches to sharing savings excesses that do not influence the statistical treatment:
    1. The first approach is where the EPC states that the Authority is entitled to the share of any savings excesses that result from identifiable and measurable actions of the Authority (e.g. where the Authority changes the maximum/ minimum temperatures to be maintained in a building or reduces the operational hours of a building);
    2. The second approach is where the EPC states that the Partner is entitled to a specified share of any savings excesses that arise. The Partner’s share must be no less than two thirds. Under this approach no assessment is made of whether a savings excess results from the actions of the Authority or the Partner or other factors.

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