What is ESOS?
The government’s Energy Savings Opportunity Scheme (ESOS) is the UK’s interpretation of Article 8 of the EU Energy Efficiency Directive. It is an initiative to lower carbon emissions and mandates that organisations undertake comprehensive assessments of energy use and energy efficiency opportunities at least once every four years.
The scheme is aimed at large commercial businesses. Those that qualify must carry out repeated audits, scheduled to happen every 4 years, to identify cost-effective energy saving measures. Brexit will not affect requirements.
We’re now in phase 2 of the ESOS compliance scheme which started on 6th December 2015 and finishes on 5th December 2019, when Phase 3 begins.
Do you qualify for phase 2?
ESOS applies to UK organisations and their corporate groups that are large enough to meet one of these qualification criteria:
- Employ more than 250 people
- Have an annual turnover in excess of £38million and an annual balance sheet in excess of £32million
- You are part of a group where one entity meets the above criteria
Some exemptions:
- Housing trusts
- Public bodies
Full details can be found here on page 7.
What are the likely costs of complying with ESOS Phase 2?
You will need a Lead Assessor as authorised by the Environment Agency to undertake an ESOS assessment. As you would expect the cost does depend on the size of the organisation, but typically compliance starts from £650. It is advisable to not look for the cheapest but one that offers a competitive price, and also has the necessary experience to help you see benefits from the process.
What data will you need for ESOS Phase 2?
To comply you’ll need to report 12 months energy consumption, which includes December 2018, for buildings, industrial processes and transport. This means having access to the likes of:
- Gas and electricity bills
- Use of other gases and oil
- Onsite generation consumption
- Business mileage
How can you benefit from ESOS Phase 2?
ESOS will take time and have a cost to your business, but by embracing this with a good Lead Assessor you could look to recover costs by making changes to how you use your energy, which is the intention of the process.
You may find that this opens opportunities for additional projects and savings.
What happens if I do not comply with ESOS Phase 2?
There may have been a lenient approach to the deadline for Phase 1, but this is not likely to be the case for Phase 2.
There will be an initial £5,000 penalty, with additional charges accruing depending on the length of delay with compliance. Therefore, with the naming and shaming, non-compliance should not be viewed as an option.
Notable ESOS Phase 2 dates
- December 2018 – Qualifying
- December 2019 – Submission
All ESOS reporting must be completed, signed off and filed with the Environment Agency by 5th December 2019.
How can we help?
We can provide organisations with bespoke and tailored support as well as guidance surrounding compliance with ESOS Phase 2.
If you qualify for ESOS it is all about providing evidence that you have been able to identify energy efficiency and energy management opportunities when you have an audit; this is where we can help.
Indigo Swan can assist with ESOS compliance including providing a Lead Assessor. Should you prefer some tools and information to support your own submission, we can discuss accessing and analysing half hourly data from smart meters to demonstrate a starting point and the impact of measures.
Get in touch with us today for more information.
[contact-form-7 id=”1599″ title=”ESOS Page-Contact_copy”]
