2. What has worked and what needs to be improved?
The new EPC accounting rules for the public sector one year after:
What has worked and what needs to be improved?

3. Application of EPC guide
Scope of document
Translates general statistical rules and principles of “economic ownership” into contractual terms and concepts
Endorsed as official Eurostat guidance and the reference point for Eurostat advice and decisions on EPCs
Eurostat rules relate to statistical treatment in government accounts - not to accounting rules/practices and budgeting
Does not address value for money or bankability considerations
More information in the webinar: Statistical_Treatment_of_Energy_Performance_Contracts

4. What does the Eurostat guide imply?
Key changes
Government payments to the ESCO proportional to savings achieved
Energy savings must exceed total amount of payment of government to ESCO
Maintenance cost are included in calculation, maintenance savings are not
Savings are shared between government and private party (1/3 and 2/3)
Minimum contract duration is 8 years
EU funds are neutral in accounting treatment
Revenues from renewable energy generation count as savings

5. Implementation of EPC guide
Progress - one year after
“Maastricht neutral” model contracts approved by Eurostat for Slovakia, Slovenia*
“Maastricht neutral” model contracts in preparation or consulted with national statistical offices (as far as we know): at least 12 Member States are working on model contracts or already consulting the national statistical office
“Maastricht neutral” pilot project in process of preparation in Belgium.
Standards set by EPC guide are adopted across different EPC sectors

6. Implementation of EPC guide
Remaining barriers
National budget rules do not allow for (“Maastricht neutral”) EPC
Problems with accounting rules
Existing contracts and market practise not compatible with “Maastricht neutrality”
Existing bank financing to ESCOs not compatible with “Maastricht neutrality”
National support (grants, loans, guarantees) schemes may lead to on-balance sheet treatment
Difficulties to bring ESIF grants and financial instruments into EPC

7. Implementation of EPC guide
What has the EIB done so far?
Review of the Slovak EPC model contract regarding balance sheet treatment
Financial analysis of street lighting project in Vilnius supported
Smart cities study including EPC in Croatia and Hungary
Feasibility study on using EPC for a large scale central government building renovation programme in Latvia
Setting up an Investment Platform for EPC financing with ESIF support in Czech Republic
Developing a “Maastricht neutral” model for EPC financing with ESIF for DG REGIO

8. Mobilising EPC market What can the EIB do for you?
Further awareness raising on the benefits of EPC and its financing
Awareness sessions on the Eurostat rules
Information on supporting EPC through ESIF grants and financial instruments
renewable-energy-financial
Technical support for EPC projects
Support for preparing model contracts (but no legal advice)
Market demand analysis
Technical assistance through ELENA facility
Sustainable financing of EPC projects
Dedicated financial instrument or investment platforms using resources from ESIF, EFSI and EIB own financing

9. EIB Advisory Services: Laurent Bender Robert Pernetta
EIB Advisory Services:
Laurent Bender Robert Pernetta
European Investment Advisory Hub