Article 7 EED | Energy Efficiency Directive Article 7 | Energy Efficiency Directive | ENSPOL | Energy Saving Policies and Energy Efficiency Obligation Schemes |

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Article 7 EED explained

Overview of Energy Efficiency Directive

The European Union has set itself the goal of reducing EU primary energy consumption by 20% by 2020, compared to current projections. The Energy Efficiency Directive (EED) (2012/27/EU) was adopted on 25 October 2012 and entered into force on 5 December 2012. It is the key instrument to help attain this goal and has now been transposed by all Member States (MS).

The Directive establishes a common framework of measures for the promotion of energy efficiency within the Union in order to ensure the achievement of the Union’s 20-20-20 headline target on energy efficiency and to pave the way for further energy efficiency improvements beyond that date. It lays down rules designed to remove barriers in the energy market and overcome market failures that impede efficiency in the supply and use of energy, and provides for the establishment of indicative national energy efficiency targets for 2020.  Download a copy of the Directive 2012/27/EU click here.

Further information:

Article 7 EED explained

Under the Energy Efficiency Directive, EU countries should set up an energy efficiency obligation scheme. This scheme requires energy companies to achieve yearly energy savings of 1.5% of annual sales to final consumers.

In order to reach this target, companies have to carry out measures which help final consumers improve energy efficiency. This may include improving the heating system in consumers' homes, installing double glazed windows, or better insulating roofs to reduce energy consumption.

EU countries may also implement alternative policy measures which reduce final energy consumption. These measures could include:

  • Energy or CO2 taxes
  • Financial incentives that lead to an increased use of energy efficient technology
  • Regulations or voluntary agreements that lead to the increased use of energy efficient technology
  • Energy labelling schemes beyond those that are already mandatory under EU law
  • Training and education, including energy advisory programmes

Source: European Commission web page on Article 7 EED

Available guidance on Article 7 EED

The European Commission has published a guidance note (also known as a Commission Staff Working Document) on Article 7 EED. It outlines the steps Member States need to take when implementing Article 7 and provides guidance on:

  • How to calculate energy savings
  • Policy instruments and criteria
  • Which sectors and individual actions are to be targeted
  • How to calculate energy savings from individual actions
  • Measurement, control, quality and monitoring and verification requirements
  • Reporting requirements
  • References to relevant studies and papers

View the European Commission’s guidance note (English only)

The Coalition for Energy Savings has also produced detailed guidance on the Energy Efficiency Directive in the form of its “Online Guide for strong implementation of the Energy Efficiency Directive” with a number of chapters dedicated to Article 7 as follows:

  1. Binding end-use energy saving targets (Article 7)
  2. Eligibility of measures and savings (Article 7 Annex V) 
  3. EEOs and alternative measures (Article 7) 


More in this category: « Designing effective policy

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