The deadline for submitting your notification of compliance with ESOS Phase 2 is 5 December 2019. This is not so far away now and if you need to comply and have not yet done so you need to action this as soon as possible. If you have not appointed a lead assessor yet then contact us for a copy of our scoping document so we can prepare a quote for you.
Energy Savings Opportunity Scheme (ESOS)
What is ESOS?
ESOS is not another carbon tax!
Penalties for not complying
How do I ensure I comply?
Who does what?
Our ESOS compliance service
Why use ESOSA
Ask for a quotation
FAQs
What is ESOS?
An ESOS assessment is an audit of the energy used by the organisation in its buildings, industrial processes and transport in order to identify cost-effective energy saving measures. The UK Government established the ESOS Regulations 2014 to implement Article 8 (4-6) of the EU Energy Efficiency Directive (2012/27/EU).
- ESOS is a mandatory energy assessment scheme, a legal requirement administrated by the Environment Agency, which applies to all qualifying organisations in the UK.
- An organisation qualifies for ESOS if it has either:
- At least 250 employees or
- €50 million (c.£37m)turnover and a balance sheet exceeding €43 million (c.£32m)
- Organisations must notify the Environment Agency by the 5th December 2019 of their compliance with the Phase 2 ESOS obligations. Audits have to be carried out every 4 years.
ESOS is not another carbon tax!
Although undertaking an energy audit is now a matter of legal compliance, there's no reason to see it as yet another layer of red tape; it's a genuine opportunity for financial gain
- By taking advantage of the ESOS process, rather than just doing the minimum required, it's possible to unlock quick and significant cost savings, turning it into a cash-positive process.
- In any organisation, there are opportunities for fine-tuning and removing energy waste, which means you can use an ESOS audit to your financial advantage.
- Quick action is required to enjoy in-year benefits from ESOS.
- Make sure your in-house teams are fully aware of the importance of ESOS, understand the associated urgency and know what's needed to get started.
Penalties for not complying
The penalties for failing to comply with the ESOS regulations include:
- Failure to maintain adequate records
- £5,000 plus sum equivalent to compliance costs
- Failure to notify the Environment Agency of compliance by 5th December 2019
- £5,000 plus £500 per working day you remain in breach
- Failure to conduct an ESOS assessment and energy audits
- £50,000 plus £500 per working day you remain in breach;
- False or misleading information
- Reputational damage
- In addition to the fines above, non-compliance will be published online, including the name of the organisation, along with details of the size of the penalty imposed.
How do I ensure I comply?
If the whole of your organisation is already ISO 50001 accredited and actively compliant, you do not need to carry out an ESOS assessment! You only need to notify the Environment Agency that you comply.
If not, you must undertake an ESOS assessment led by an accredited ESOS Lead Assessor.
- The Lead Assessor is responsible for ensuring the energy assessment is based on audits that are complete, appropriate, consistent and comprehensive
- It is best practice to engage the Lead Assessor before audits are undertaken as they will help you determine:
- the best approach to suit your own needs and ensure compliance
- the methodology to be used
- what needs to be audited, how and the amount of sampling that is appropriate
- generally project manage the whole process and
- produce the ESOS compliant report
- An ESOS assessment must be signed off by both a Board level Director and approved by a Lead Assessor prior to reporting compliance to the Environment Agency.
- A Lead Assessor will not simply rubber stamp an ESOS assessment at the end.
Who does what?
| The table below lists the responsibilities of the company (ESOS participant) and our Lead Assessor and the actions each will carry out as part of the ESOS assessment.
|
| Requirement/Action
|
ESOS Participant
|
Lead Assessor
|
| Overall responsibility for compliance with ESOS
|
✔
|
|
| Highlight any audit work already undertaken
|
✔
|
|
| Agree audit methodology for new audits
|
✔
|
✔
|
| Define scope of audits
|
✔
|
|
| Agree audit timetable
|
✔
|
✔
|
| Agree sampling approach and the number of site visits required
|
✔
|
✔
|
| Make available data for audit
|
✔
|
|
| Identify energy saving opportunities
|
|
✔
|
| Calculate energy/cost savings of measures identified using method agreed
|
|
✔
|
| Determine energy use profiles
|
|
✔
|
| Present audit(s) recommendations
|
|
✔
|
| Review overall ESOS Assessment
|
|
✔
|
| Obtain Director sign off of audit findings and recommendations
|
✔
|
|
| Notify the Environment Agency of compliance by the compliance date
|
✔
|
|
| Keep ESOS Evidence Pack to substantiate the audit findings & recommendations
|
✔
|
✔
|
Our ESOS Compliance Service
ESOSA have:
- Lead Assessors who:
- are accredited with one of the ESOS accreditation bodies
- are highly experienced professional energy assessors
- are also qualified in other relevant disciplines
- can organise and manage the whole process including arranging for detailed energy audits where necessary and arrange the input of specialists if needed.
- Energy assessors/auditors who:
- are accredited non-domestic energy assessors and/or Green Deal Advisors
- are also qualified in other relevant disciplines
We can either conduct the energy audits ourselves or oversee/approve assessments previously conducted or arranged through third parties. With many years of experience our assessors will ensure that your company is able to achieve full legal compliance with the ESOS regulations.
Why use ESOSA?
As an external consultant, it could be both time-effective and cost-effective to leave navigating this complex legislation to us:
- Maximise cost savings
- Our Lead Assessors can take your experience with ESOS beyond simple compliance, maximising cost savings and adding value to the process!
- The greatest savings can be accrued through standardising metrics, in order to provide a baseline for league tabling - and a real means of comparison across similar buildings.
- Time is money
- It could take an in-house staff member many months to get to grips with ESOS making it a potential drain on resources and a distraction from your business!
- Budget accurately
- By quickly undertaking energy-saving upgrades that produce in-year benefit, an ESOS audit can be at least budget-neutral!
Ask for a quotation
To help us understand what your organisation is like and what your needs are, we will ask you complete an initial scoping questionnaire.
This preliminary process will allow us to make an initial assessment of the audit requirements for your company and ensure that the assessment meets your needs, is compliant and cost effective.
To start the process, please contact us on
FAQs
FAQ1 - What is included in an ESOS audit?
- Buildings
- Energy supplied to and used by the organisation;
- Generated energy, (not waste heat captured);
- Not energy supplied to others, used outside the UK or embedded energy.
- Industrial Processes
- Energy supplied to an organisation and which it uses;
- Generated energy (not waste heat captured);
- Not energy supplied to others, used outside the UK, embedded energy in raw materials or energy used by users of the organisations product.
- Transport
- Fuel bought for use by transport
- Journeys that start or end in in the UK
- Company car fleet but not personal mileage
- Cars used by staff driving for business
- But not fuel used for commuting, third party logistics, flights or train travel
FAQ2 - Who does the audits?
- Either:
- you can undertake energy audits in-house, if you have appropriately qualified, experienced and available personnel, using a recognised energy audit methodology e.g. BS16247 or ISO 50001, or
- you can out-source this to appropriate professionals; the Lead Assessor will be able to help select, direct and manage their work to ensure it is complete and fit for purpose, or
- a combination of both.
FAQ3 - What has to be audited?
- It is necessary to identify 100% of all the energy used in a business.
- If there is a particular type of energy use that is less than 10% of the total, then this does not need to be audited.
- Even if you have carried out audits on some of the above, the Lead Assessor will still need to confirm the results meet the minimum standards required before you can notify your compliance to the Environment Agency.
FAQ4 - Is there any Added Value?
You will have to pay for this service, so isn't it better to get more for your money than mere compliance? Going beyond the mandatory requirements can provide your company with multiple benefits including:
- Possible financial savings and increased profitability through implementing over time, an action plan to carry out energy saving measures identified as a result of the audit
- Improve your company's reputation by:
- Knowing how to reduce your company's environmental impact from greenhouse gas emissions
- Being legally compliant you will improve your company's reputation through greater environmental credentials. More and more companies are expected to be able to provide evidence of their environmental awareness and good practices.
The Government estimates that a typical ESOS audit will identify potential cost savings that are more than 13.5 times greater than the cost of the audit.
FAQ5 - Do I have to implement any recommendations?
Substantial savings can only be made by properly engaging with the energy reduction process. It's not about the fastest way to tick the boxes - it's about thinking past the audit to where the real savings are.
Organisations that choose not to implement any energy-saving measures will find the ESOS process both expensive and time-consuming. However, businesses that approach ESOS as an opportunity should reap significant financial rewards many times the size of initial investment.
- the audits will identify cost effective improvements that are worth doing as these will save you money over time.
- recommendations may also include things that could improve working conditions and productivity.
- the Lead Assessor will prioritise all recommendations in terms of value for money/payback etc..
As a result of the audit being carried out, you will be able to identify areas where energy savings can clearly be made. ESOSA is able to help you implement these measures if you wish.
FAQ6 - Does ESOS affect the public sector?
No - just private and third-sector organisations.
BUT - if you are a large Academy school or University or another partly "publicly" funded
organisation, if your funding is less than 50% from public funds, you may well qualify so
check carefully. The Environment Agency have clarified that student loans used for tuition fees are private finance.
FAQ7 - What if I'm part of a UK incorporated Group?
If any part of the Group must comply with ESOS, that means the whole Group must comply, including any SMEs the Group owns.
FAQ8 - What if I'm a franchisee?
Small franchisees are not likely to be affected by the scheme. Your franchiser will not be required to consider your operations in its audit. You will only be required to participate if you are a large enterprise as defined on page 1.
FAQ9 - How will I let the Environment Agency know I comply?
Your Lead Assessor should provide for you, in your ESOS Compliance Report, a summary of the information you will need to complete your notification to the Environment Agency.
Notification is then done on-line at:
www.gov.uk/energy-saving-scheme-esos
