What is ESOS Compliance?
ESOS Compliance: Energy Savings Opportunities Scheme
The Energy Saving Opportunity Scheme (ESOS) Phase 2 has commenced. Organisations are required to notify the Environment Agency by 5th December 2019, that they have complied with their ESOS obligation.
ESOS is a mandatory energy assessment scheme for organisations in the UK that meet the qualification criteria. Organisations that qualify for ESOS must carry out an ESOS assessment every 4 years to remain compliant. If you, or any part of your corporate group meets either of the following conditions, you will need to comply with ESOS Regulations:
- Employs 250 or more people
- An annual turnover in excess of €50m and a balance sheet in excess of €43m
What are the Deadlines for ESOS?
Do You Qualify for ESOS?
You must take part in ESOS if your organisation qualifies as a large undertaking. If you meet either one or both of the following conditions, your organisation will qualify as a large undertaking:
- Employs 250 or more people
- An annual turnover in excess of €50 m (£38.9 m circa), and an annual balance sheet total in excess of excess of €43 m (£33.4m circa)
What are the Exemptions for ESOS?
If you qualify for ESOS and your organisation has a ISO 50001 accredited energy management system that covers all your energy use, you do not need to complete an ESOS assessment. Further details about exemptions can be found on the Environment Agency website – full ESOS guidance.
What are the Penalties for Non-Compliance of ESOS?
Organisations that fail to comply with the requirements set out by ESOS may be liable to compliance and enforcement activities. The following penalty notices may also apply:
Failure to notify – A fixed penalty of up to £5,000 plus an additional £500 each working day until the notification is completed, subject to a maximum of 80 days
- Failure to maintain records – A fixed penalty of up to £5,000
- Failure to undertake an energy audit – A fixed penalty of up to £5,000, plus an additional £500 for each working day until the breach is remedied, subject to a maximum of 80 days
- Failure to comply with compliance notice, an enforcement notice or a penalty notice – A fixed penalty of up to £5,000, plus an additional £500 for each working day until the breach is remedied, subject to a maximum of 80 days
- False or misleading statements – A fixed penalty of up to £50,000
How to Ensure you are Compliant with ESOS?
You can demonstrate that you have made a compliant ESOS assessment by using Display Energy Certificates (DECs), Green Deals Assessments (GDAs), ESOS compliant energy audits or ISO 50001 certification.
If you do not have an ISO 50001 accredited energy management system which covers all your energy use, you must carry out an ESOS assessment. In order to achieve compliance, you need to complete the following steps:
- Calculate your total energy consumption
- Identify your areas of significant energy consumption
- Consider available routes to compliance
- Appointment an ESOS Lead Assessor
- Notify the Environment Agency – online
- Keep a record of how you complied with ESOS
Download our ESOS Implementation Guide
Our guide to ESOS provides practical advice and the best routes to compliance. The guide also includes a step by step approach to achieving ESOS compliance, common issues faced during ESOS Phase I and how to turn the cost of compliance into an opportunity. Key topics covered in guide include:
- What is ESOS?
- What are the key dates of ESOS?
- What are the penalties and exemptions for ESOS?
- How will ESOS affect my organisation?
- What are the benefits of ESOS? – Turning the cost of compliance into an opportunity
- How do I ensure I comply with the ESOS regulations? – 10 Steps to ESOS
- What lessons were learnt from ESOS Phase 1?
- How can ETS help?
How to Get an ESOS Assessment?
The qualification criteria and requirements of ESOS are complex and can be challenging for organisations to ensure compliance. Our Chartered Energy Engineers, Chartered Energy Managers, Chartered Engineers, ISO 50001 Lead Auditors and ESOS Lead Assessors will guide you through the requirements of ESOS and provide you with the necessary insight to help build an effective Energy Management System (EnMS).
ETS is offering a no-obligation consultation and review; which is the first step in the ESOS process. We have a national team of accredited ESOS Lead Assessors and ISO 50001 Lead Auditors who will ensure that you comply with the scheme and help you to maximise cost saving opportunities. ETS will help you plan early to avoid some of the challenges that can occur along the way and can:
- Collate and analyse your energy data
- Lend specialist consultative support as you need it
- Plan and deliver your energy audits
- Provide experienced ESOS Lead Assessors to guide you to compliance
We believe the true value of ESOS can only be realised by supporting our clients long after the compliance period has ended. Our after sales support is the best in class and we will work with your organisation to help guide you through the next stages should you wish to proceed with the energy saving opportunities identified.
ESOS Compliant Energy Audits
You are required to provide 12 consecutive months of energy data in order to complete your audit. Your audit cannot be undertaken more than a year before the compliance deadline of 5th December 2019 nor extended beyond this date.
Many organisations that delayed starting the process during Phase 1, experienced difficulties in finding ESOS Lead Assessors and collating accurate energy data. This resulted in a number of late submissions. We recommend planning early and speaking with one of our ESOS Lead Assessors now by calling 0117 205 0544 or emailing firstname.lastname@example.org.
Data Quality and Collection for ESOS
12 consecutive months of energy data must be provided that includes the qualification date (which falls on 31st December 2018) but not the compliance date. Figure 1 shows the energy data restrictions. It is worth noting that relying on invoices could be a mistake as your audits may require more granular data.
Our team of Energy Data Analysts can support your organisation with collating accurate energy data and ensuring all aspects of reporting are covered, subject to the organisations’ declaration.
The better your data, the more insight you will gain from your energy audits and the more reliable your energy savings recommendations. The more recent the data included within your audit, the more relevant the audit will be to current working practices; this is why metering your portfolio and collating your energy data now will provide you with valuable information.
What are the Benefits of ESOS?
ESOS is more than just a compliance exercise, it provides detailed recommendations of where and how to save energy. Whilst the ESOS programme doesn’t insist that you undertake the recommended measures from the audits, it provides businesses with a platform to work from to reduce capital expenditure and improve operational efficiency.
Information from your ESOS energy audit can be used as the basis for implementing an energy management system (EnMS) to facilitate the realisation of the energy saving opportunities identified. If your system is then certified to ISO 50001 during the next four years, your organisation will automatically demonstrate ESOS compliance. Our ISO 50001 Lead Auditors and ESOS Lead Assessors can support your business in the next compliance phase.
Lessons Learnt from ESOS Phase 1
Organisations that delayed on starting the process of Phase 1 compliance will be aware of the difficulties that companies encountered trying to find lead assessors and submitting their application on time. Phase 1 saw close to 2,800 late submissions, resulting in a number of financial penalties.
Planning early will help avoid some of the challenges that can occur along the way. Only 16% of the total submissions received during Phase 1 were compliant with the ESOS requirements, with three-quarters requiring remedial action. Starting now can:
- Help with planning your energy audits
- Minimise disruption
- Minimise potential problems
- Potentially reduce costs