15/12/2017

Don’t just become ESOS compliant, discover how your organisation can identify and implement the most cost-effective energy efficiency measures to reduce consumption and make huge savings.



What is ESOS and who is affected?

Calling all large, private UK organisations – now is the time to begin the compliance process for Phase 2 of the UK government’s Energy Savings Opportunity Scheme (ESOS), or face a potential penalty of up to £90,000!

As one of the UK’s leading energy and environmental consultancies, we offer an expert service to achieve ESOS compliance and convert energy saving opportunities into actual cost-cutting realities.

ESOS – the UK government’s application of the EU Energy Directive (Article 8) – is a mandatory energy assessment scheme for British organisations that meet the qualification criteria.

These qualifying organisations must undertake comprehensive assessments of energy use and energy efficiency opportunities at least once every four years, ultimately contributing to the aim of reducing EU energy consumption by 20% before 2020.

The affected organisations are as follows (public bodies* are exempt):

  • Businesses with 250 or more employees employees; or

  • Businesses with a turnover of more than €50m and an annual balance sheet exceeding €43m.

*Organisations funded in part by public money, such as universities, may still qualify

In order to comply with Phase 1 of ESOS, qualifying organisations were required to complete ESOS assessments and submit the relevant information by 29 January 2016.

What next?

Phase 2 is now underway, with regulations demanding that large businesses repeat the measures taken in Phase 1 before the compliance deadline of 5 December 2019. Broadly, these steps are to:

1) measure total energy consumption;
2) conduct audits to identify energy efficiency opportunities; and
3) report compliance to the national scheme administrator (Environment Agency in England, SEPA in Scotland, NIEA in Northern Ireland, and NRW in Wales).

Qualifying organisations will need to appoint a Lead Energy Assessor to conduct and sign-off the ESOS Assessment.

Alternatively, organisations are able to comply automatically – meaning the ESOS assessment is not required – if they already have ISO 50001 certification, the international standard for best practice energy management.

While ESOS Phase 2 audits can now begin, the measurement of your business’ total energy consumption isn’t able to get underway until January 2018. This is because ESOS compliance requires a 12 month period of data which includes the qualification date of 31 December 2018.

Why comply?

Avoid penalties
Businesses that qualify for ESOS are legally obliged to carry out audits and achieve compliance. As a result, those that do not participate or are found to be non-compliant could face a fine of up to £90,000.

Save energy and money
By appointing the best lead energy assessor for organisation, you will not only be able to do the very minimum – comply – but also open the door to realising maximum energy saving opportunities, offering you the chance to implement the most cost-effective energy efficiency measures identified through the ESOS audit.


Why start taking action now?

Despite the 5 December 2019 deadline, don’t get caught short by the challenges and potential penalties that can arise by leaving the compliance process until too late in the day (as many organisations discovered to their peril during ESOS Phase 1).

ESOS Phase 1 stats:

  • Around 2,800 organisations reported compliance late.

  • Only 16% of participants were initially found to be fully compliant, requiring three quarters of audited participants to take further action (and time) to meet the regulations.

  • This late surge in demand for energy assessors led to a shortage in availability, especially of those with a reputation for high-quality practice and best results.

  • 5% of organisations were ultimately deemed non-compliant, with 500 qualifying businesses in England found to have not engaged with the scheme whatsoever, resulting in enforcement notifications and civil penalty proceedings.

  • Taking early action can not only help avoid occurrence of the above, but also help you better identify energy and cost saving opportunities and the ability to implement them sooner. What are you waiting for?

How we can help
  • We offer the full range of ESOS services

  • Experienced and fully accredited Lead Energy Assessors

  • Support right the way through ESOS Compliance process

  • Ability to help achieve compliance in the most cost-effective manner

  • Expertise to identify and implement optimum energy efficiency opportunities and maximise associated business benefits

  • We can also assist organisations wishing to achieve ISO 50001 certification


For more information on legislative compliance advice, contact our energy management team today on 02920 893 811 or email us to discuss your needs.

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