Regulating energy efficiency tax incentives

Measurement and verification professionals will now be regulated and accredited by a new body to assist the roll out of tax incentives for demonstrated energy savings.

The Council for Measurement and Verification Professionals of South Africa (CMVPSA) is a Section 21 company established as a Chapter of the SAEE to regulate M&V practitioners (individuals) in the industry. CMVPSA will operate in the same manner in which professionals within the legal, medical, and accounting professions, for example, are regulated.

The development of Regulations and Standards to claim energy efficiency tax incentives were set in motion in 2009, when the then Minister of Finance, Trevor Manual, announced that there would be tax incentives for companies that can demonstrate energy savings, which necessitated the establishment of the CMVPSA. Following Trevor Manual’s announcement, the South African Bureau of Standards (SABS) was tasked by government to develop a South African Technical Standard (SATS) for the energy efficiency tax incentive programme. This has now been completed and is available from SABS. The SATS is expected to be converted to a full South African National Standard (SANAS) during the course of 2011.

The South African National Accreditation System (SANAS) was tasked to develop an accreditation process for M&V bodies. This fulfils the requirement of assessing the capability of Measurement and Verification (M&V) companies. The mechanism is in place and SANAS is ready to accept applications from companies wishing to become accredited. SANAS provides full information and guidelines for accreditation on their website. SANAS will accredit M&V bodies using the SATS 50 010 as basis as well as M&V specific requirements such as having access to appropriately skilled and qualified human resources.

It is imperative that there is a mechanism that ensures that both individuals as well as companies are held responsible for their actions in the event of malpractice.  SANAS will deal with companies while CMVPSA will deal with individuals.

regulation to be published

With the SATS, and SANAS systems in operation, the only outstanding aspect is the publication of the Regulation which will allow companies to claim tax on their energy efficiency savings. This regulation is expected to be published toward the end of 2011.

Individuals wishing to verify measurements for energy efficiency tax incentives and ISO 50 001 certification must register as professional M&V practitioners with the CMVPSA.

Students studying at a tertiary institution may apply to the Council to become Student Associate Members free of charge. Associate membership is available to persons interested in M&V that want to gain more knowledge on the topic for a minimal annual fee. Full membership implies that you are registered as an M&V professional with the CMVPSA, providing that the educational and experiential requirements are fulfilled.

To register with the CMVPSA in any of these categories logon to www.cmvpsa.org.za for more information, or contact Izelle Bosman on 018 297 5908.