We work with a wide range of organizations to assist them with ESOS compliance. These have included, but are not limited to, manufacturing, car hire, aviation, charities, services companies, wholesale distribution and financial services. In addition to Lead Assessor services we have undertaken ESOS energy audits for buildings, industrial processes and transport including contract fleet, grey fleet, heavy goods and air transport. We have also been an ESOS ‘trouble-shooter’ for organizations that have had compliance issues.
The Energy Savings Opportunity Scheme Regulations apply to large enterprises. ESOS was introduced in July 2014, with a first phase compliance date of 5 December 2015 and the second phase compliance date 5 December 2019.
For Phase Two they will apply to ‘large’ organisations, that is those employing at least 250 people or with a turnover of more than €50m (£38,937,777) and a balance sheet of more than €43M (£33,486,489) on 31 December 2018. The Regulations apply to the whole of the UK. Public bodies, as defined by the Public Contracts Regulations 2006, are not included. The Regulations place the responsibility for determining the need to comply on the organization – the Agency does not notify you of a need to comply. We are aware of a number of well-known organizations that failed to meet the first compliance date as they were ‘unaware’ of the need to comply. If you have any doubts we will be happy to provide an initial review at no cost.
Qualifying organisations must cover a minimum of 90% their energy use (buildings, processes and transport); carry out energy audits to quantify their energy use and identify cost-effective improvements on a four-year cycle. There are two ‘alternatives’ to the audit requirement, i.e. certification to ISO 50001 – for 100% of energy use – including transport; or using Display Energy Certificates (DEC). There is no requirement to implement recommendations made by the assessment. The ESOS assessment must be signed off by a board level director and an ESOS Lead Assessor. A British Standard PAS (51215:2014) has been published to provide the competence specification for Lead Assessors, who are listed on the 13 registers approved by the Environment Agency. For more information on the registers, click here
The UK has an obligation to implement Article 8 of the Energy Efficiency Directive as part of the UK strategy to reduce carbon emissions. Although the UK is leaving the EU (March 2019) there is currently no reason to expect the ESOS Regulations to have been repealed before the 2019 compliance date. On that basis organisation are advised to plan to comply with ESOS sooner rather than later.
The regulations came into force on 17 July 2014. 31 December 2014 was the Phase One qualification date—no reporting action required. The compliance reporting deadline was 5th December 2015. As a result of low levels of compliance by the 5 December the Environment Agency deferred taking enforcement action – the compliance date was not changed. By the summer of 2017 Enforcement Notices have been issued for those that have been determined to be non-compliant.
For Phase Two the compliance date is 31 December 2018. However, energy audits can be conducted at anytime in the four-year window – so they can be undertaken before the qualification date.
We recommend that if you are covered by ESOS you should ACT NOW to be prepared for the 2019 compliance date.
Don’t forget, that effective energy audits bring benefits regardless of ESOS.