ESOS is here, and if your business applies, compliance is mandatory. While it may seem like a costly and time-intensive process, there are financial opportunities and benefits to be found in this mandatory scheme.
In Phase 1 of ESOS, we at EIC identified a total of 527GWh worth of energy savings for our clients, equivalent to £49 million in cost savings. If you act now, you could avoid fines of £90,000 and reap the rewards of a new green plan.
What is ESOS?
The Energy Savings Opportunity Scheme (ESOS) is a mandatory compliance scheme in the UK, derived from Article 8 of the EU Energy Efficiency Directive. ESOS’s aim was to reduce EU energy consumption by 20% by the end of 2020. ESOS occurs in four-yearly phases and introduces regular energy audits that highlight energy savings for large businesses.
Who needs to comply?
Public bodies are not affected. Large organisations that must comply are classified as those with:
- More than 250 employees or
- A turnover of more than £50 million and an annual balance sheet total of more than £43 million
ESOS Phase 2 Updates
The ESOS deadline for Phase 2 was 5 December 2019. Any qualifying organisations who did not complete their assessment and submit a compliance notification by the deadline are at risk of enforcement action. Penalties issued in Phase 1 for compliance failures ranged up to £45,000 with a potential maximum fine of £90,000.
ESOS Regulators are currently issuing compliance notices to all UK corporate groups who they believe should have participated but haven’t yet received a notification of completion from.
If you receive this, you must inform the regulators whether you are:
- in the process of completing your compliance, or
- provide evidence you have already submitted your notification, or
- advise that you do not qualify for ESOS
You can find a published list of all businesses who have made a submission via the ESOS notification system as of 1 February 2020 here.
Further evaluation on the effectiveness of energy audits and ESOS can be found here.
If you need urgent support with your Phase 2 compliance, talk to EIC today. Our dedicated team of ESOS Lead Assessors and highly trained Energy Auditors will work hard to help you comply as soon as possible, and support you in any conversations with the Environment Agency.
AFTER ESOS COMPLIANCE
It’s vital that you don’t let your compliance go to waste. ESOS aims to highlight where companies can make energy improvements, cut wastage and lower costs, use these opportunities to improve your operations, and make significant energy savings. The most common areas for energy savings are lighting, energy management through smarter energy procurement, metering, monitoring and controls, and air conditioning.
How ESOS and SECR go hand in hand
Streamlined Energy and Carbon Reporting (SECR) was introduced in April 2019 as a framework for energy and carbon reporting and a similar qualification criterion to ESOS has been applied. Taking action with ESOS compliance will help you get a head start with preparing for SECR compliance. Though ESOS and SECR are separate schemes and will continue as such, you can use information from your ESOS compliance to support energy and emissions reporting and narrative on energy efficiency action taken in your annual reports.
Whether it’s ESOS, SECR, or CCA, EIC will work with you to reach compliance deadlines and targets. Talk to EIC on 01527 511 757 or email email@example.com if you need any further advice on ESOS or SECR. We’re here to help.