ENERGY PERFORMANCE CONTRACT

Energy Performance Contracts (EPC) are a contractual agreement between the beneficiary and the supplier of an energy efficiency improvement measure, verified and monitored during the entire duration of the contract, where investments (works, supplies or services) carried out are paid according to the level of energy efficiency improvement contractually established or other agreed energy performance criteria, such as financial savings.

The elements contained in the contract are the following:

• clear and transparent list of the efficiency measures to be applied or the results to be achieved in terms of efficiency;
• the guaranteed savings to be achieved by applying the measures provided for in the contract;
• the duration and the fundamental aspects of the contract, the terms and conditions envisaged;
• a clear and transparent list of the obligations incumbent on each contractual party;
• reference date or dates to determine the savings made;
• a clear and transparent list of the stages of implementation of a measure or package of measures and, where relevant, the related costs;
• the obligation to fully implement the measures provided for in the contract and the documentation of all changes made during the project;
• provisions governing the inclusion of equivalent requirements in any contract concessions to third parties;
• a clear and transparent indication of the financial implications of the project and the share of the two parties in the pecuniary savings made (for example, remuneration of service providers);
• clear and transparent provisions for the quantification and verification of guaranteed savings achieved, quality controls and guarantees;
• provisions that clarify the procedure for managing changes to the framework conditions that affect the content and results of the contract (by way of example: change in energy prices, intensity of use of a plant);
• detailed information on the obligations of each of the contracting parties and on penalties for non-compliance.

We finance your efficiency: ALENS, in collaboration with its partners, identifies energy efficiency interventions and assumes the costs of implementation and management through guaranteed performance contracts with enhancement of the fee based on the results achieved.