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Accelerate your ESOS compliance into Phase Two

Businesses have until 5 December 2019 to meet the Energy Savings Opportunity Scheme (ESOS) compliance deadline.

Time for ESOS Phase Two action

Effective energy management that ensures compliance with regulation is always important. Now is the time for vigorous action to prevent the risk and reputational damage of non-compliance and to capitalise on the energy efficiency opportunities that ESOS will identify.

The triple challenge of rising energy costs, climate change risk and energy supply disruption, means that implementing these energy saving opportunities is a business necessity. The sooner companies complete their ESOS audits, the sooner they can understand where they're wasting energy and what energy efficiency measures will deliver the best return on investment.

What is ESOS and who does it affect?

ESOS is a mandatory energy assessment scheme for large UK organisations . It stems from the EU energy Efficiency Directive and  covers energy consumption across buildings industrial process and transport.

Phase Two of ESOS applies to:

  • Mainly large private sector organisations that have more than 250 employees, or a turnover of more than £44m and a balance sheet exceeding £38m
  • Companies that are part of a corporate group, but who meet the above qualification thresholds

Some public companies and not-for-profit bodies may be in scope, but organisations that are subject to the Public Contracts Regulations (2006) are exempt.

5 steps to fast track ESOS Phase Two and realise energy saving opportunities

With the final ESOS Phase Two deadline of 5 December 2019 looming, there are five key steps that all organisations in the UK need to work through to ensure compliance with energy management regulation.

1. Select and appoint your ESOS Lead Assessor: It is compulsory to secure the services of a government approved Lead Assessor to approve your final audit. Lead Auditors must be listed on an official register of consultants and qualified to PAS 51215:2014. Our Lead Assessors are working with many organisations to add value throughout the entire ESOS compliance process.

With ESOS Phase One there was a last minute rush to secure compliance led to limited availability of Lead Assessors and meant some businesses missed the deadline, resulting in penalties and reputational damage.  

2. Measure total UK energy consumption: Consumption must be measured over a 12 month continuous period that includes 31 December 2018. This data must include all buildings, transport and processes.

3. Collate, verify and record your data: Gather, verify and record data that must cover at least 90% of your total energy consumption. Steps two and three can be very time consuming, especially in exploring any data gaps or inaccuracies and ensuring verification of all information.

It is compulsory to use one of the following approved auditing/assessment processes to support steps two and three:

  • An ESOS compliant energy audit
  • A Display Energy Certificate
  • A Green Deal Assessment or
  • A certified ISO 500001 Energy Management System

4. Use the auditing process to identify energy saving opportunities: As part of the auditing process, identify areas of significant energy consumption to be assessed for energy saving opportunities.

Make energy efficiency recommendations based on the consumption information.  It is not a legal requirement to implement these energy saving recommendations, but businesses  will miss out on potential  cost and environmental savings if they delay in taking action or ignore the expert advice.

5. Approve and report compliance: Review your ESOS findings at senior management level and gain sign off from a Director, which is a legal requirement. This is a good opportunity to review the energy saving opportunities and discuss an implementation plan.

You will also need approval from your Lead Assessor before making your final ESOS submission to the Environment Agency by the final deadline of 5 December 2019.

Unlocking the benefits of ESOS?

The overall aim of ESOS is to improve energy management and efficiency, which is the most cost effective way of reducing energy waste.  ESOS provides the detailed data to support an informed energy saving plan, which can deliver higher profits , better environmental performance and improve energy resilience.

ESOS occurs in four-yearly compliance phases, which started in 2011 with ESOS Phase one. Phase two is currently in effect; and Phase three of ESOS will run from 6 December 2019 to 5 December 2023.  

Across the scheme (2015 – 2030), the government estimates that after ESOS (Phase two) the net benefit to the UK will around £1.6 billion.

How we can support your ESOS implementation

We are partnering with WSP to help customers maximise the ESOS opportunity. This combines WSP’s expertise in  optimising the  energy estates of large organisations with our energy insight solutions. Together, we are supporting the end-to-end ESOS compliance process for hundreds of organisations – helping to drive cost and carbon savings, create operational efficiencies from enhanced asset performance,  and  deliver new revenues.