Act now on ESOS energy reporting compliance to seize the financial opportunity
Act now on ESOS energy reporting compliance to seize the financial opportunity
The Energy Saving Opportunities Scheme (ESOS) – the government’s mandatory energy assessment programme for large UK organisations – is now in its second phase.
And while the deadline for compliance is not until December 2019, we are advising organisations to act now to avoid delays and make the most of opportunities for savings.
Turn costs into financial opportunities
ESOS requires large organisations (defined as having more than 250 staff or an annual turnover of around £39m) to undertake an assessment of their overall energy use, and identify cost-effective energy saving measures. Recommendations might include initiatives such as lighting or heating upgrades, but also are likely to highlight opportunities for reduction where little or no outlay is required.
Complying with ESOS carries a cost for those organisations affected. But the audit can identify potential savings of 13.5 times greater than the cost of compliance, according to the Environment Agency which administers the scheme.
“By starting the process now, organisations have a chance to implement some of the energy saving recommendations and recoup the cost of the audit within the same financial year,” says Peter Stockwell, Managing Director of Concept Energy. “The process then becomes cost-neutral in the short term. Over time these energy reduction initiatives can deliver long term financial benefits.”
Avoid bottlenecks
There is also a risk of delays for organisations that decide to wait until the last minute. ESOS requires an audit from a qualified lead assessor, and there is only one for every 10 organisations.
The shortage of quality lead assessors means that organisations which are slow to act risk failing to comply on time. In phase one of ESOS, the Environment Agency sent out at least 300 enforcement notifications and has commenced civil penalty proceedings against a number of non-compliant organisations.
Selecting an ESOS partner
Concept Energy Solutions is one of the UK’s leading independent carbon and water management consultancies. Our team of qualified ESOS lead assessors is working with firms across a range of sectors to identify and implement carbon reduction measures.
“We are able to advise organisations of all types and sizes on long-term strategies that result not only in compliance, but in energy savings and operational efficiencies,” says Peter Stockwell. “Energy legislation needn’t be a burden or a ‘tick box’ exercise – we would urge companies to get in touch with us today and start enjoying the financial benefits straight away.”
New to ESOS? Read our briefing guide to find out who’s liable, how to comply – and how to get the best out of the legislation.
