Legislative compliance
esos
ENERGY SAVINGS OPPORTUNITY SCHEME
ESOS is a mandatory energy auditing scheme affecting large undertakings and their corporate groups.
The Energy Savings Opportunity Scheme (ESOS) is UK legislation that makes energy audits mandatory for large organisations.
Every qualifying enterprise in the UK is required by law to undertake an energy audit.
The audit reviews total energy use from your business operations including building energy use, transport energy use and industrial processes. The review identifies potential measures to save energy.
UKGP can organise for ESOS audits to be performed and subsequently carry out installations to improve energy efficiency that have been identified by the audit, also offering creative funding options to support capital project implementation.
The following must be undertaken by 5th December 2019 to meet compliance:
Formal quantification of ALL energy consumption from buildings, transport and industrial processes
Conduct compliance activities such as; detailed energy audits or ISO 500001 across at least 90% of the group energy consumption
Obtain signatures from a board level director(s) and an appointed ESOS Lead Assessor
Submission of final compliance declaration
As the process can take some time to complete and quality ESOS lead assessors are in short supply, it is important to act ASAP to ensure ample time to meet compliance. Furthermore, the Environment Agency has now opened the compliance notification portal so ESOS compliance can be completed now allowing you to; spend 2019 managing your business and not worrying about compliance, avoid fines of up to £50,000 plus £500 per day and start making the cost savings found in your ESOS reports.
QUALIFICATION:
Phase two of the scheme is likely to affect those that qualified in phase one, and also new corporate groups that didn’t qualify in phase one. As a result, it is important to check your qualification status and take steps to reach compliance now. Qualification is based on the following criteria for any UK undertaking:
Employs 250* or more people (this is total employed or FTE),
or
Has an annual turnover in excess of 50 million euro (£44,845,000), and an annual balance sheet total in excess of 43 million euro (£38,566,700)
or
Is part of a corporate group, including an overseas common parent, where at least one UK group member meets the ESOS definition of a large undertaking.
If your organisation is very close to the threshold for qualification or has recently grown or shrunk please contact us to discuss as you may need to check qualification in more detail.
ACT NOW:
In order to meet ESOS compliance you need to secure a Lead Assessor to help you reach compliance now. For those that complied with phase one of the scheme it is important to note that the same Lead Assessor, or company, does not have to be used for phase two. Appointing a different Lead Assessor for phase two is likely to highlight different energy saving opportunities and has the potential to reduce energy, costs and carbon savings, as well as meeting scheme compliance.
As ESOS compliance ultimately resides with the qualifying organisation, not the Lead Assessor, it is important that a Lead Assessor is selected based on a number of important factors, rather than just perhaps things like cost.
Key Lead Assessor selection criteria should include:
A Lead Assessor should be experienced in identifying energy saving opportunities relevant to your industry and energy use.
A Lead Assessor should be employed by a reputable company with a proven ESOS compliance history providing you with peace of mind that ESOS will be carried out correctly, and relevant and useful energy saving opportunities are identified.
A Lead Assessor should be employed by a company with a secure future ensuing that full ESOS audit support can be provided in the event of an external audit from the Environment Agency.
NEXT STEPS:
UKGP have a number of skilled ESOS Lead Assessors accredited under the reputable Energy Institute and the Energy Managers Institute, with vast experience across complex industry sectors such as; plastics, textiles, food and drink, metal, chemical, motor and aerospace, printing and cold storage etc, as well as commercial, retail, education, and transport sectors.
If you think you qualify for the scheme and haven’t take action to comply then please contact UKGP to discuss how we can help you meet more than just compliance.
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