ESOS is the government’s Energy Savings Opportunity Scheme. It is led by the Environment Agency with the overall aim of encouraging the UK’s corporate community to take proactive steps to be more energy efficient - in short, this is an opportunity to reduce overheads and to limit carbon emissions. Music to our ears.
The good news is that ESOS compliance is much less onerous than many predecessor energy audit schemes, with practical recommendations that are genuinely valuable for every organisation.
Does ESOS compliance apply to your organisation?
The ESOS regulations apply across the UK and are mandatory for any organisation that is considered a large undertaking and their corporate groups.
An organisation is defined as a large undertaking if it:
Employs 250 or more people
Or has an annual turnover in excess of £38.98m and an annual balance sheet exceeding £33.48m
Or is part of a group that includes at least one entity that meets the criteria
Beyond larger private sector companies, ESOS may also apply to partnerships, trusts, universities, charities and other not-for-profit bodies.
What do you need to do?
You will need an approved lead energy assessor to conduct your assessment and produce a report with recommendations for reducing your energy consumption.
The report that's produced will be signed off by the assessor and by a director of your organisation, before being submitted to the Environment Agency to demonstrate compliance with ESOS.
The Phase Two period is now active with a deadline of 5 December 2019. Organisations are advised to act now to ensure that they can spread the cost of meeting their obligation, capture the required data in real-time rather than retrospectively and importantly source an assessor who is best suited to their organisation. Contact us now to get the ball rolling.
The deadline for the Phase One submission was 29 January 2016 and the EA are now informing companies that have failed to comply of potential enforcement action, see more details below. We are able to help if the EA contacts your organisation about ESOS non-compliance - contact us now.
The information below clarified how the EA intends to enforce and apply the legislation:
- If a company had not notified the EA by 29 January 2016, there may be the possibility that enforcement action will be taken. Financial penalties range between £5,000 and £50,000 plus £500 per day thereafter (up to 80 days).
- Companies trying to push through ISO 50001 as a form of compliance had until 30 June 2016 to gain certification.
- Enforcement notices from the EA to organisations believed to be out of compliance can legally force them to provide information about their situation, and will be used to make companies declare their status. The EA suggest a three-month window is likely to be given to rectify the non-compliance situation, still allowing for civil penalties in serious instances, however.
- Organisations with 40,000kWh/yr or below (classed as domestic usage), have relaxed auditing requirements. They can offer self-declaration with their own documented energy saving opportunities and usage, as part of their evidence pack.
- Organisations that qualify but have zero energy consumption will only need to declare this to the EA, and other sections of the ESOS regulations will not be enforced.
How we can help you comply
As an established provider of environmental compliance, and working with approved lead energy assessors, we can manage ESOS from end to end, taking away any hassle or burden from the process.
Many other providers are simply running ESOS as a tick-box exercise. At Ecosurety we see this differently: we will match you with the right assessor to deliver the best possible report, then work hard to deliver the identified opportunities to reduce your energy consumption and thereby save you money while shrinking your carbon footprint.
For the ESOS compliance process we will:
- Define the scope of your ESOS audit eg. geographic reach and number of sites
- Agree a strategy for implementing the assessment eg. where, when, who, what, how
- Oversee delivery of the assessment including site visits, sampling and taking relevant measurements
- measure the total energy consumption for buildings, industrial processes and transport
- identify areas of significant energy consumption that account for at least 90% of total energy consumption
- Oversee production of a report that includes practical energy-efficiency recommendations and clear cost vs payback analysis
- Present back the findings and secure director-level support
- Submit it to the Environment Agency
Once the report is safely submitted, it's then time to follow through by delivering the opportunities identified to cut energy use. We will see this through and support a real return on investment from ESOS.
Summary of key ESOS compliance services
Our ESOS compliance service includes:
1. Readiness review
Scoping out the audit requirements for your specific organisation and producing a basic compliance plan and outline budget
Calculating your total energy consumption using the energy footprint data request template and identifying those areas of significant energy consumption (up to 90%)
3. Detailed planning
Setting out a more in-depth audit methodology, agreeing the sampling approach as well as timelines and a full budget
Collecting the relevant on-site data, with as many site visits as required. Identifying areas to improve energy efficiency and projecting the calculated savings
Presentation of all the findings in one condensed report, delivering the evidence back to a director of your organisation for sign-off. Then notification of compliance to the EA.
Once the report is safely submitted, it's then time to follow through by delivering on the opportunities identified to cut energy use. We will see this through and support a real return on investment from ESOS.