ENERGY SAVING OPPORTUNITY SCHEME (ESOS) PHASE 2

ENERGY SAVING OPPORTUNITY SCHEME (ESOS) – PHASE 2

ESOS operates in four-yearly compliance phases. Organisations in the UK must assess whether or not they are required to participate in ESOS on the qualification date of each phase. ESOS is a mandatory energy assessment scheme for organisations in the UK that meet the qualification criteria. These assessments are audits of the energy used by their buildings, industrial processes and transport to identify cost-effective energy saving measures. The qualification date for the second phase is the 31st December 2018.


 

PHASEQUALIFICATION DATEFOUR YEAR COMPLIANCECOMPLIANCE DATE
PHASE 131 December 20146 December 2011- 5 December 20155 December 2015
PHASE 231 December 20186 December 2015 – 5 December 20195 December 2019
PHASE 331 December 20226 December 2019 – 5 December 20235 December 2023

Organisations in the UK must assess whether or not they are required to participate in ESOS on the qualification date of each phase. The organisational group, and the qualification criteria below, are assessed as the organisation stands on 31st December 2018 and will need to comply by 5th December 2019.

  • Organisations with more than 250 employees (employees includes employees and other persons engaged in the business of the organisation such as owner-managers and partners). Part time employees still count as one employee.
  • OR if fewer than 250 employees but has an annual turnover greater than 50 million Euros (roughly £42.5 million as of July 2018) and an annual balance sheet total exceeding 43 million Euros.

Whilst the compliance deadline of 5th December 2019 may sound like a long time away, why wait? If you believe that your organisation will qualify for this next compliance period, you could plan your compliance strategy and implement a rolling programme of energy audits over the remaining period leading up to the deadline. By the next deadline your organisation will be well placed to comply with its ESOS obligations and financially benefit from implementing energy saving opportunities.
 


 

THE PROCESS: WHAT WE DELIVER

Our ESOS service includes:

  • Gap Analysis – Assessing where you are, and what will be required to achieve compliance
  • Strategy – Developing a compliance strategy which optimises what you will get out of participating in ESOS
  • ESOS Energy Use Report – Your calculation of 100% of energy use (covering the selected reference period)
  • ESOS Compliance Statement – Your report of compliance to the Environment Agency
  • ESOS Evidence Pack – Your ESOS Compliance Records
  • Act in role of ESOS Lead Assessor – Acting as your Lead Assessor, and fulfilling all that entails
  • Green Fleet Audit/Review (covering your transport obligations under ESOS (where applicable) – Providing ESOS services to organisations with transport compliance obligations
  • ESOS Compliance Routes – We have offerings covering Energy Audits, ISO50001 and Display Energy Certificates

 


 

ROUTES TO COMPLIANCE

You are required to measure your total energy consumption across a 12-month reference period which must include the qualification day. You can measure your total energy consumption in either energy units (e.g. kWh, GJ) or energy expenditure (£). Once you have measured your total energy consumption you can then identify your “areas of significant energy consumption‟. Your areas of significant energy consumption must account for at least 90% of your total energy consumption. As a guideline your assessment of sites to be included, a ballpark figure is around the square root of the total number of sites within your company or per operation, but the judgement about coverage ultimately sits with your Lead ESOS Assessor to ensure that the selection is representative.

1. ESOS Energy Audits
These may include any energy audit work undertaken during the compliance period under other schemes (such as activity under the Carbon Trust Standard, Logistics Carbon Reduction Scheme and Green Fleet Reviews), provided your Lead Assessor confirms this work meets the minimum standards. The costs of ESOS Energy audits will dependent on the scope of works needed versus data already collected that can contribute towards the total consumption requirement.

2. An ISO 50001 certified Energy Management System
This is an alternative route to an ESOS energy audit and will form an overall energy management system for effective management of energy consumption. ISO 50001 could be employed by a multi-national company across its operations, it does require more work and the ISO 50001 is above the minimum requirement level of ESOS.

3. Display Energy Certificates (DECs) and accompanying advisory reports
These are a low cost option per site that will contribute to the total consumption requirement, however, they are restricted in terms of what they measure and one would be required per site so for large portfolios may ultimately cost more than other routes.

4. Green Deal Assessments
GDAs are bespoke assessments that take account of specific energy use behaviours. EPC and DEC data can be imported to inform these. Green Deal Assessments builds on the established EPC assessment process. Again they are restricted in terms of the data measured and one would be required for each site.
 


 

WHY CHOOSE ENERGISE

How did Energise perform in ESOS Phase 1?

  • We completed 95% of our assessments by 05/12/15 vs the national rate which was 40%, and the next 5% by the 31st January 2016
  • Energise took 93 Clients through compliance for ESOS Phase 1, with a compliance rate of 100%
  • We identified over 3,000 recommendations
  • The average saving for each of our clients was 14.3%
  • Total financial savings identified were over £45,000,000

FAILURE TO COMPLY

Failure to comply with ESOS will ultimately mean incurring a fine:

  • Failure to declare compliance on time – £5,000 plus £500 per working day up to 80 days
  • Failure to maintain adequate records – £5,000 fixed penalty
  • Failure to comply – £50,000 plus £500 per working day until resolution
  • Failure to comply with an enforcement notice – £5,000 plus £500 per working day
  • Falsification – Up to £50,000
  • In all cases publication of non-compliance

 


 

WHAT ARE THE BENEFITS FOR YOUR COMPANY?

  • ESOS Lead Assessors (we have in-house Lead Assessors who can act in this mandatory role for you)
  • ESOS Compliance Routes (we have offerings covering Energy Audits, ISO50001 and Display Energy Certificates)
  • We completed 95% of our assessments by 05/12/15 vs the national rate which was 40%, and the next 5% by the 31st January 2016
  • Energise took 93 Clients through compliance for ESOS Phase 1, with a compliance rate of 100%
  • We identified over 3,000 recommendations
  • The average saving for each of our clients was 14.3%
  • Total financial savings identified were over £45,000,000

 


 

WHAT DO I NEED TO DO NEXT?

Appoint an Accredited Lead ESOS Assessor who will be accredited to compile and assess your compliance. Lead ESOS Assessors can be internal to an organisation, but if they are then two “responsible Directors” will be required to sign off the compliance report, not one. Report compliance to the Environment Agency by 5 December 2019, you must notify the Environment Agency (as the scheme administrator) that you have complied with the scheme.

For the second phase of the scheme, you can use any energy auditing activity dating back to 6 December 2015 to support your compliance as long as your Lead Assessor deems it to meet the criteria of an ESOS audit.

Unless your total energy consumption is covered sufficiently (90%) by a certified ISO 50001 Energy Management System, you must ensure that your ESOS Assessment is conducted or reviewed by a qualified Lead Assessor. Energise have Accredited Lead Assessors, and can also advise on ISO 50001 implementation with Accredited ISO50001 auditors.

Call us to discuss your requirements or arrange a visit from one of our experienced team. We can talk you through our tailored service, fitting the ESOS process to your needs and requirements.

SERVICE SUMMARY

Organisations with more than 250 employees (employees includes employees and other persons engaged in the business of the organisation such as owner-managers and partners). Part time employees still count as one employee. OR if fewer than 250 employees but has an annual turnover greater than 50 million Euros (roughly £42.5 million as of July 2014) and an annual balance sheet total exceeding 43 million Euros.
To manage your data and ensure ongoing compliance with your ESOS obligations.
ESOS Lead Assessor (we have in-house Lead Assessors who can act in this mandatory role for you) ESOS Compliance Routes (we have offerings covering Energy Audits, ISO50001 and Display Energy Certificates)

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