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10 Feb 2023 9 min

Energy diagnosis: what is it and when is it mandatory

The energy diagnosis allows companies to take a snapshot of their energy consumption, and enables them to both identify and quantify cost-effective energy saving opportunities.
For some companies, it is mandatory and non-compliance is subject to sanctions. We at Fervo, as an energy service company (ESCo), explored the subject and the essential requirements defined by the regulations.

Today more than ever people feel the need to keep their energy consumption under control. The European Union's ambitious target is to reduce it by at least 32.5% by 2030. This need particularly concerns companies, which are facing a time of crisis - even more exacerbated by the delicate international situation - and are forced to monitor the energy use of their facilities.

Such focus not only has returns for the individual company, but is of interest to the entire system of the overall energy chain. Sustainable energy chain management has beneficial effects on the environment, public health, the energy costs of companies and households, increased competitiveness, job creation and retention, and the growth of businesses in all sectors of the economy.
Technically, what has to be applied in these cases is the so-called “energy diagnosis”, a procedure that is compulsory for many companies (private and public), which are specifically designated by law.

What is an energy diagnosis?

An energy diagnosis is the systematic evaluation that a company carries out to find out how it uses energy from the moment of purchase to its final use.
In practice, it is the most qualified tool for analysing the overall energy management of a company of any type, industrial, service-related, primary or tertiary.

Basically, an energy diagnosis must provide a precise and detailed report of the various moments related to energy use:

  • how and where the energy enters the plant, facility or even a part of the equipment in the enterprise
  • how energy is used and how it is distributed
  • how it is transformed from when it is introduced to when it is used
  • with which devices it could be used more effectively and efficiently.

Our experts at Eco2zone, an E.S.Co (Energy Service Company) certified Fervo Group company, can take an energy snapshot of your property or plant and identify areas for improvement. Click here for more information.


Energy diagnosis: for whom is it mandatory?

Art. 8 of Legislative Decree 102/2014, which implemented the mandatory requirement for certain companies to carry out energy diagnoses as set out in the European Directive 2012/27/EU on efficiency, emphasises that those obliged to carry out energy audits at their production sites are large energy-intensive companies.

Large companies, again according to Art. 8, are those which meet three requirements:

  • more than 250 employees
  • turnover of more than 50 million euro
  • total annual budget of more than 43 million euro.

Large companies with a total annual energy consumption of less than 50 TOE (tonnes of oil equivalent) are not required to carry out an energy diagnosis.
Energy-intensive businesses, on the other hand - as specified by Ministerial Decree of 27/12/2017 - consume more than 1 GWh of energy. They belong to one of the product sectors indicated by the EU Guidelines, and are registered in the lists published annually by CSEA, the Energy and Environmental Services Fund.

Does your company fall into the categories for which an energy diagnosis is mandatory? Our consultants can help you understand this and carry out all the actions required to perform the energy diagnosis.

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Reporting Energy Savings

Art. 7 of Legislative Decree 102/2014, as amended by Legislative Decree 73/20, stipulates that, by the deadline of 31 March each year, companies must report to ENEA - National Agency for New Technologies, Energy and Sustainable Development - their data on energy savings implemented with respect to the previous year.
This is an obligation for all companies that are required by law to carry out an energy diagnosis, all companies that have an ISO 50001 certified energy management system, and public bodies that fall into these two categories.
It is understood that companies outside these contexts are also free to communicate their savings to the National Agency.

We at Fervo are on hand to help you improve your company's energy efficiency and to clearly and appropriately report your savings figures to ENEA. 

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Exemptions from energy diagnosis

Large companies or those with high energy consumption are exempt from carrying out the energy diagnosis required by Legislative Decree 102/2014 when they adopt a voluntary ISO 50001 management system certified by an accredited body.
As clarified by the Ministry of Economic Development (MISE) in December 2018, in order to access the exemption, the company must send its data on energy use and ISO 50001 certificates to ENEA, following the instructions of the National Agency in the “Guidelines for Monitoring in the Industrial Sector”, paying attention to the relevant sectoral guides (see ENEA website).

In the event that only part of the company is ISO 50001 certified, the same company must carry out an energy diagnosis and submit management reports to ENEA for all its production sites that are not certified.

Do you want to adopt a voluntary ISO 50001 management system and you don't know how to do it? Our environmental, quality and occupational safety experts can help you with all the necessary paperwork to apply for and obtain certification.

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Mandatory reporting and sanctions due to non-compliance

Failure to report, when compulsory, involves sanctions set forth by Legislative Decree 102/2014, which have been updated over time, as far as fines are concerned.

In the event of an ascertained violation, MISE may impose a sanction of EUR 4,000-40,000 on companies that have not complied with the obligation, and of EUR 2,000-20,000 for energy diagnoses that, despite having been carried out, have not been performed in accordance with requirements.
In addition to the fine, there is a warning for the offending company to execute and produce a correct energy diagnosis within a period of 90 days from the date of the immediate notification or from the date of notification of the inspection report. After this deadline, an administrative fine of EUR 1,500-15,000 is applied.
A fine is also envisaged for companies that do not implement at least one of the efficiency-enhancing measures indicated in their energy diagnosis or, alternatively, companies that do not adopt management systems in accordance with standard ISO 50001. In this case, the penalty is in the range of EUR 1,000-10,000.

Sanctions for failure to carry out an energy diagnosis or for a non-compliant energy diagnosis are particularly heavy in terms of fines. Don't take the risk. Our team is there to support you through all the required legislative and bureaucratic formalities. 

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The Energy Purchase Tax Credit in 2022

Did you know that Italian companies (energy-intensive and not) can benefit from a tax credit for energy purchases in 2022? Here you can get all the information and indications to receive advice and answers from the consultants of Eco2zone, E.S.Co. of the Fervo Group.