Archive for the ‘Energy Savings Opportunity Scheme’ Category

While the official Energy Savings Opportunity Scheme (ESOS) deadline remains 5 December for qualifying organisations, updated guidelines from the Environment Agency indicate the those failing to comply by then will not face penalties as long as compliance is submitted by 29 January 2016.

Although not an official extension, the EA says it “reflects the ability to exercise discretion when taking enforcement action.” In reality those companies that have made an effort to comply – appointed an ESOS Lead Assessor, begun the data collection and site audit process – will not face sanctions as long as they complete the audit by the end of January next year.

It’s important to note, however, that companies must still submit details of their ESOS process by 5 December, even if it’s just an explanation of why the 5 December deadline won’t be met and what they’re doing to complete the process.

As of mid-October only around 375 business had notified the EA of compliance out of an approximate 14,000 eligible organisations.

If you’re still to start the ESOS process (or having problems) do get in touch to see how one of Energy & Carbon Management’s Lead Assessors can help.

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With the 5 December 2015 deadline fast approaching the Environment Agency has revealed that only 150 of the estimated 10,000 eligible business have confirmed their compliance.

All UK business with more than 250 employees or £40 million annual turnover and a balance of sheet of over £34 million are required to complete an energy audit. Those failing to meet the deadline could be liable for fines of up to £50,000 plus £500 per day for every day of non-compliance.

With fears that there aren’t enough certified ESOS Lead Assessors companies to meet the backlog, the first priority should be to appoint an Assessor, ideally one experienced in your specific sector who can bring value beyond merely meeting the regulatory requirements.

While there’s speculation that fines could be avoided for late compliance as long as progress is being demonstrated, that’s a risky approach that leaves open the possibility of substantial fines.

The Energy & Carbon Management team are proficient at helping businesses achieve ESOS compliance so do get in touch. In addition to achieving compliance and avoiding penalties, our lead assessors will identify opportunities to reduce energy use, cut consumption and save money.

According to the latest reports, by the end of May only 32 companies had reported compliance with the new Energy Savings Opportunity Scheme (ESOS) from the roughly 14,000 who qualify.

While most eligible companies are now aware of ESOS, with less than 6 months to go there’s much work still to be done to gather data, conduct site audits and develop the recommendations that will make the whole process worthwhile.

For those yet to get a grip with ESOS there’s a risk that certified ESOS Lead Auditors will be in short supply in the run up to the 5 December deadline, and those still available may push their prices up, while missing the deadline could result in hefty fines.

Do get in touch to discuss the different ways to meet the ESOS requirements and, as importantly, ensure your organisation benefits from the process.

 

The latest ESOS-related survey found that only a third of qualifying businesses asked were aware of the requirement to conduct an energy audit by 5 December this year.

The Verismic survey of 100 companies also found that most had low awareness of the penalties for non-compliance, both financial (£50,000 and/or £500 per day) and reputational, with qualifying companies not completing an ESOS assessment at risk of being publicly named and shamed.

With awareness of the Energy Savings Opportunity Scheme requirements just 24% in the retail, distribution and transport sectors companies are calling on the government to do more to raise knowledge of the scheme.

Depending on your organisation an audit is likely to take at least 2-3 months but quite possibly considerably longer so it’s important to select a Lead Assessor and start the data collection and verification process as soon as possible. With ESOS covering transport as well as building and process energy use it’s also quite likely that data collection could take longer than anticipated.

For more information on ESOS do get in touch: rcampbell@energyandcarbonmanagement.com

 

 

 

With less than 8 months to go until the 5 December deadline for Energy Savings Opportunity Scheme (ESOS) submissions it appears that a large number of businesses have yet to start the audit process.

There’s an estimated ratio of 1:20 Lead Assessors to ESOS qualified organisations, so  leaving it too late could result in higher than necessary audit fees and/or large fines for non-compliance.

Depending on your organisation an audit is likely to take at least 2-3 months but quite possibly considerably longer so it’s important to select a Lead Assessor and start the data collection and verification process as soon as possible. With ESOS covering transport as well as building and process energy use it’s also quite likely that data collection could take longer than anticipated.

In addition to the compliance imperatives, other reasons to start ESOS now include:

  • the sooner energy saving opportunities are identified the sooner savings can be made, potentially covering the cost of the audit within the current financial year
  • Lead Assessor resources will likely become increasingly scare towards the end of the year, pushing costs up

To discuss how best you can meet ESOS requirements do get in touch.

A recent npower survey found that 49% of UK manufacturers are unaware of the new Energy Savings Opportunity Scheme (ESOS), while 69% feel uninformed about the scheme’s requirements.

Organisations meeting the ESOS criteria must complete an energy audit by 5 December 2015 or face fines of up to £90,000. The policy is designed to help businesses cut energy use as part of the UK’s commitment to cutting carbon emissions.

While the audit is mandatory, implementing the efficiency recommendations is not, which leaves ESOS at risk of being seen as a costly tick-box exercise, rather than something with the potential to reduce energy consumption at the average business by 20%.

Long-term benefits of ESOS

ESOS will only turn from cost to benefit if the recommendations are implemented, so it’s important to consider your capacity to deliver these recommendations when appointing your ESOS Lead Assessor.

A ‘full service’ Assessor will help to maximise savings through impartial advice on the best solutions tailored to your operational and financial criteria that:

  • improve your bottom-line
  • reduce energy consumption
  • future-proof your business against rising energy costs
  • make premises more comfortable and efficient for your staff and customers

Energy management system

With ESOS now on a 4-yearly cycle it’s also worth establishing an energy management system that makes future compliance straightforward, particularly energy data collection and an asset register that includes key ESOS data.

A robust system means that next time round ESOS can become a stock-taking exercise that measures progress, highlights new opportunities and maintains efficiency momentum, rather than a costly one-off project that has little long-term benefit.

To gain a clear idea of the costs and benefits of ESOS do get in touch.

 

For qualifying organisations, 2015 promises to be the year of the Energy Savings Opportunity Scheme (ESOS), the compulsory energy audit for businesses with 250+ employees, or turnover of €50m+ and balance sheet of €43m plus.

The audit must be completed by 5 December 2015 or fines of up to £90,000 could be imposed, so companies must appoint a registered Lead Assessor to oversee the ESOS process and confirm that the business has been audited in a compliant fashion.

It’s important therefore that ESOS-qualified organisations start the audit process as soon as possible

  • you’ll need 12 months of accurate data (buildings, transport & processes) for all energy purchased and used within the business
  • there will be pressure on ESOS Lead Assessors towards the end of the year, which in turn could push up the cost of compliance
  • leaving it to the last-minute means you may have no choice but to do an expensive full ESOS audit, rather than taking your time to identify the most effective route to compliance, building on your existing energy savings measures/policies
  • undertaking an early ESOS scoping assessment will ensure that you opt for the most cost-effective solution, but also the one that identifies the most commercially and financially viable energy savings

A key consideration should also be the choice of Lead Assessor, which will influence whether ESOS becomes a box-checking exercise or something that maximises potential savings and long-term value.

It’s important therefore to work with someone with relevant sector experience and a strong record in energy management, so do get in touch to discuss how you can best comply.

 

Related articles:

ESOS: any lead assessors out there

ESOS… another energy acronym, but one that could save you money

ESOS is coming: what does it mean for you?

 

 

DECC last week released further details of the forthcoming Energy Opportunities Savings Scheme (ESOS), being introduced as part of the EU Energy Efficiency Directive.

The mandatory scheme requires an estimated 7,000 large businesses – those with 250+ employees or turnover of £40 million+ and annual balance sheet greater than £34.4 million – to complete an energy audit every four years. Public sector bodies are exempt.

The audit must…

  1. Measure total energy consumption in buildings, processes and transport
  2. Conduct energy audits to identify cost-effective energy efficiency recommendations
  3. Report compliance to the Environment Agency

While the audit is mandatory, implementing the savings identified will be voluntary, with the government and EU hoping that by identifying cost-effective options companies will be sufficiently incentivised to implement them.

The government estimates that ESOS will have a net benefit of around £1.9 billion between 2015-30, based on a rather pessimistic assumption that only 6% of the identifiable efficiency opportunities will be implemented.

The Carbon Trust, on the other hand, predicts energy savings 2-3 times greater, based on its track record of 40% of simple recommendations with quick payback being adopted.

If businesses don’t implement the savings, particularly those with a good ROI, they’ll continue to pay more than needed for energy, while also paying for an audit from which they fail to benefit.

The first assessment must be completed and notified to the Environment Agency is 5 December 2015. Fines of up to £50,000 can be imposed for failing to carry out an audit. If your organisation is already covered by ISO 50001 then an audit is not required (although the Environment Agency must be informed).

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ESOS is coming: what does it mean for you?