New regulations, reporting and efficiency standards are set to reshape the UK’s energy efficiency landscape in the new year. Graham Paul and fellow efficiency and carbon-reduction experts at TEAM Energy explain what this means for your business.
From reformed EPC certificates to mandatory Scope 3 reporting, energy managers face mounting complexity on top of the need to transition to clean technologies.
According to the Climate Change Committee’s 2025 report to parliament, more than half of the energy used in our economy is wasted due to inefficiencies built into fossil fuel technologies.
Whether it’s transport, space heating or industrial processes, electrification will help to reduce that waste. At the same time, much of our built environment is wasteful of energy, and unfit for changing weather conditions.
Electrification and the built environment are just two examples of how the energy and energy efficiency landscape is changing.
Energy managers and business leaders must help drive these changes while juggling daily operations. But that’s much easier said than done, especially when the future seems unclear, or requires new technology, reports and ways of operating.
All UK organisations need to be aware of the developments on the horizon; they need to incorporate them into their business plans and get ready for any shockwaves. Acting sooner is also an advantage; small steps now can deliver meaningful impact while building momentum over the long term.
Should UK organisations be concerned about energy efficiency rating changes in 2026?
Tim Holman, head of operations: “Organisations should brace themselves for potential changes to the requirements for energy efficiency certificates.
“A consultation on the Energy Performance of Buildings (EPB) framework closed in February 2025, the results of which are expected very soon, and the reforms could start to be applied from 2026.
Shorter validity periods for Display Energy Certificates (DECs) and recommendation reports have been proposed, and there could be updates to enforcement mechanisms, including fines for DECs and Air Conditioning Certificates (TM44s).
“Also, while commercial EPC ratings themselves may not change in 2026, related to this could be the confirmation of the new Minimum Energy Efficiency Standards (MEES) requirements setting the trajectory for future tougher compliance obligations.
These are significant changes, and I’d caution energy and building managers to seek proper support ahead of taking any actions. At this stage, the best thing any organisation could do is find a trusted partner that will help them understand the full breadth of these potential changes and collect the data they may need to act on them.
Data for sustainability reporting will also be of new importance in 2026, as the UK looks to introduce the UK Sustainability Reporting Standards (SRS).
What does SRS mean for UK organisations, and who is it going to impact?
Tom Anderton, Head of Customer Success: “If your company is affected by existing reporting such as Streamlined Energy and Carbon Reporting (SECR) and Energy Savings Opportunity Scheme (ESOS), you may be impacted by the proposed SRS, along with large private companies and public interest entities (PIEs).
“Whilst voluntary at first, SRS looks to be much more ambitious. For example, where SECR required reporting on energy consumption and Scope 1 and 2 emissions without external validation, the SRS could require companies to have their data validated externally. It could also require companies to outline their transition plans and report on wider issues beyond simply climate and emissions.
“Although small and medium sized business will not be in scope as part of the first wave, if they are suppliers to larger firms which do fall in scope, they may be asked to provide emissions or sustainability data to help feed into their supply chain emissions.
“A big change will also be Scope 3 emissions. SRS will make Scope 3 reporting mandatory for affected companies after their first year.
“We work with many organisations already reporting under SECR, but to those we’re not supporting, I would advise them to carry out an analysis of the gaps in their reporting capacities and internal processes.
“Voluntary to mandatory is a big change. You’re going to need much more data; it needs to be good quality and auditable, and you’re going to need to tell a more forward-looking narrative about it and your organisation, too.”
More data will be a natural consequence of the upcoming Market-wide Half-Hourly Settlement (MHHS) programme. As the largest change to the electricity retail market in a generation, businesses can expect a mix of opportunity and risk.
What can organisations expect from MHHS in 2026, and how can they prepare?
Robert Webb, bureau operations manager: “Not long ago the MHHS felt like a distant change; now it’s here.
“The central MHHS system went live in September, and from October 2025 some electricity suppliers began moving customers from the older settlement arrangement to the new half-hourly system. In 2026, many more providers will follow.
“Over the 18-month migration window, roughly 33 million electricity meters will be moved, 80% expected complete by October 2026.
“Organisations need to prepare now. They may need to upgrade meters and data platforms to handle far higher data volumes and manage more complex imbalances between forecasted and actual consumption.
“More granular data will expose inefficiencies and peak-time consumption patterns previously hard to detect. Some businesses may face uncomfortable truths about usage and higher costs.
“All, however, will have the chance to benefit from new dynamic pricing models – which, combined with energy-efficient technologies and self-generation, could significantly cut costs, energy use, and emissions.”
Also upcoming is the Energy Savings Opportunity Scheme (ESOS) phase 4 qualification deadline. For energy managers and business leaders, the requirements are clearly defined with some pre-existing compliance routes removed and progress reporting now required.
Why should organisations care about the upcoming deadlines for ESOS phase 4?
Senior energy consultant Sam Arje: “Though the new qualification date is December 31 2026, the first compliance and submission deadline is December 5 2027.
“With so little time between qualification and submission, those responsible for ESOS compliance need to start preparing now, especially as the government has reduced valid routes – Display Energy Certificates (DECs) and Green Deal Assessments (GDAs) will no longer apply.
“Reporting is also changing. Energy managers and business leaders must now report on progress toward commitments made in their ESOS action plans. If those commitments aren’t met, they’ll have the chance to explain why – and silence might not be the best option.
“Still, ESOS goes beyond compliance. It’s a catalyst for change, helping organisations cut energy consumption and emissions while improving efficiency, supporting funding rounds and building the business case for initiatives such as replacing combined heat and power (CHP) units or installing solar PV.”
New generation assets will soon be prioritised for different locations across the UK, with the first Strategic Spatial Energy Plan (SSEP) set for publication next year. The release of NESO’s Whole Energy Market Strategy (WEMS) report this year has also raised questions about the financial burden net zero could place on UK organisations and the upcoming Nuclear Regulated Asset Base (RAB) charges.
The SSEP is a national change, so what does it mean for individual organisations, and should they also be concerned with RAB charges or the Whole Energy Market Strategy?
Head of business change, Greg Armstrong: “The SSEP could have cascading effects on organisations deploying near- or on-site generation and storage. Projects in key decarbonisation areas may benefit from streamlined planning, closer alignment with regional energy plans, and longer-term grid certainty to strengthen business cases for private wire investments.
“For consumers on pass-through contracts, RAB will add a new charge. Though small, its long-term impact on large energy users could be significant. For those on fixed price contracts, suppliers will likely absorb costs until renewal, when they’ll be included in quotes. Energy Intensive Industries (EII) will not need to pay.”
“These new charges will affect budgets regardless of consumption, and the WEMS report shows a major imbalance between demand- and supply-side funding. Those asking ‘Who will pay for net zero?’ may not like the answer.
“The 2026 energy efficiency landscape demands a new level of preparedness. With frameworks more ambitious and reporting more rigorous, energy managers and business leaders cawn’t afford reactive approaches. They must plan further ahead and put systems and processes in place now.
“The reforms to EPB, the transition from SECR to SRS, and the evolution of ESOS all point to one truth: comprehensive data, trusted partnerships, and early action are essential.”
