esos-phase-2

ESOS Phase 2: What you need to know

The compliance period for 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.  Organisation that qualify for ESOS must carry out an ESOS assessment every 4 years to remain compliant.

/ Who Qualifies for ESOS Phase 2

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)

 / Implications of ESOS Phase 2

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

/ Exemptions

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.

/ Penalties for non-compliance

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

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:

  1. Calculate your total energy consumption
  2. Identify your areas of significant energy consumption
  3. Consider available routes to compliance
  4. Appointment an ESOS Lead Assessor
  5. Notify the Environment Agency – online
  6. Keep a record of how you complied with ESOS

/ How ETS can help

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. The ETS team includes qualified and industry experienced Chartered Energy Managers and Chartered Engineers who deliver effective energy solutions suited to individual needs.

ETS has been helping businesses for close to 20 years, providing expert engineering, energy management and compliance services. Get in touch and see how we can help by calling 01934 853334 or emailing enquiries@energy-ts.com

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