ESOS, the Government’s new energy audit scheme, is putting businesses under pressure to audit their energy usage and identify energy saving opportunities. The government believes that around £300m of energy
savings can be achieved each year.
ESOS applies to non-public organisations that employ more than 250 staff or have an annual turnover over €50m and a balance sheet over €43m. It also applies to smaller companies if they are part of a larger group that meets these requirements.
The new energy audit scheme aims to address a number of market failures that prevent enterprises investing in energy efficiency. It requires organisations to carry out energy savings opportunity assessments covering 90% of their energy usage, including transport. The Department of Energy and Climate Change (DECC) estimates that ESOS could save each business on average of £56,400 per year with just £17,000 of investment.
It is the UK’s response to Article 8 of the Energy Efficiency Directive (2012/27/EU) which requires Member States to establish an energy auditing regime.
This is a major change for many enterprises that now have to establish energy assessment regimes once every four years. This includes undertaking the assessments, maintaining an evidence pack to demonstrate compliance with the regulations and appointing a professionally accredited Lead Assessor to approve the compliance work undertaken. Companies must also notify the regulator that they have complied with the regulations by the compliance deadline, which for this compliance period is 5th December 2015.
Christopher Demwell, Director of Critical Systems and leading the Waterman ESOS delivery sees ESOS as “a great opportunity for companies to make significant savings on their year on year opex costs. Our energy assessments are effectively health checks that allow companies to make accurate and informed decisions to improve their energy management strategies.”
Embracing the challenges
Our team has adopted a range of services to comply with ESOS and we have a number of qualified Lead Assessors helping businesses carry out detailed assessments of their energy use and providing costed recommendations of energy saving opportunities and compliance reporting to the scheme’s regulator, the Environment Agency.
Tom Cullingford, Associate Director, is a Lead Assessor at Waterman. He is currently conducting energy assessments and providing companies with consultancy support to ensure ESOS compliance.
He says: “Organisations must notify the Environment Agency by 5th December 2015 that they have complied with their ESOS obligations. A failure to undertake an energy audit could result in a financial penalty of up to £50,000, and additional fines of up to £5,000 for failing to notify the EA and / or maintaining records. Our team is now working across the entire country with businesses to help them meet their obligations.
Our qualified ESOS Lead Assessors specialises in industrial, buildings and transport energy assessments and advise clients across a wide range of sectors on how to reduce their energy consumption in a cost-effective way. We can help you with:
- Energy savings opportunity assessments
- Regulatory notification
- Producing and maintaining an ESOS “evidence pack”
- Implementing recommendations from ESOS assessments to ensure you get return on investment through appropriate prioritisation of initiatives
An alternative route to ESOS compliance is to implement the energy management standard ISO 50,001: 2011 and Waterman’s team has been delivering the full range of ISO 50,001 support services from gap analysis to full system implementation to clients across a variety of sectors.
For further information please contact: