The sooner companies complete their ESOS audits, the sooner they can start to understand exactly where and when they’re wasting energy and what measures will deliver the best return on investment.
Because the clock is ticking on ESOS phase two and businesses face potentially significant financial and reputational damage if they are found to be non-compliant on this.
ESOS is run by the Environment Agency (EA) and the regulations require audits to be carried out every four years with failure to comply resulting in a potential fine. The first assessments were carried out in Phase 1 which ended in 2015 and Phase 2 has now commenced with businesses preparing and starting the process to meet the compliance date of 5th December 2019.
Who does this apply to?
All businesses employing more than 250 people or that have annual turnover over €50m and a balance sheet over €43m must comply with the ESOS regulations and carry out a mandatory assessment of energy use and energy efficiency across their sites. The assessments are audits of energy used in buildings, industrial processes and transport with the aim of identifying cost effective energy saving measures that the business could undertake.
Find out more in our ESOS pages
If you qualify for ESOS it’s important to get started and take the following steps:
- Appoint an accredited Lead Assessor to oversee the ESOS assessment.E.ON works with The Carbon Trust, an independent, expert partner of leading organisations around the world, helping them contribute to and benefit from a more sustainable future through carbon reduction, resource efficiency strategies and commercialising low carbon technologies.
- Measure energy consumption for your buildings, processes and transport.Consumption must be measured over a complete 12-month period that includes 31st December 2018.
- Identify the areas of significant energy consumption that account for at least 90% of total energy consumption
- Identify practical energy efficiency recommendations and assess their cost effectivenessThere is no obligation to implement the recommendations in the assessment but your business could miss out on potential cost and carbon savings benefits if you choose not to act on the advice.
- Report compliance to the Environment Agency after having had the ESOS assessment reviewed at Board level
ESOS reports must be signed off from a Director (which is a good time to discuss the opportunities and rewards presented in the data)
The overall aim of ESOS is to improve energy management and efficiency, increasing profitability and competitiveness. Audits will provide detailed assessments to support an informed energy saving plan.
The Government estimates that phase two of the scheme will lead to £1.6bn net benefits to the UK, with the majority directly felt by businesses through energy savings.
We can help you with these steps. We work closely with the Carbon Trust and can offer a full ESOS service package that not only meets your compliance needs but also shows you how to carry out the cost-effective proposals recommended. The Carbon Trust is the leading independent expert in this field meaning we can meet your ESOS compliance needs and provide you with expert independent advice.
During the first phase of ESOS the Carbon Trust provided expert tailored support to help over two hundred organisations comply with the scheme. From the energy saving opportunity assessments conducted as part of this, it was found that cost-effective measures could usually cut energy costs in buildings, transport fleets and industrial processes by about 20%.