Dont get caught out by ESOS…Phase 2

by 17 September 2019

You should have heard about The Energy Savings Opportunity Scheme (ESOS) by now. One of the many initiatives being created by the government and monitored by the Environment Agency (EA) to ensure the future of our planet. A mandatory energy assessment which all ‘large UK undertakings’, private and public sector, have to adhere to every 4 years. It’s a legal requirement, which must be followed, not doing so will lead to a financial penalty.

The first phase came with a deadline of 5th December 2015, now the second phase deadline is upon us and is due on the 5th December 2019.

The ESOS is not to be taken lightly, it involves carrying out a full organisational energy audit which must be based on 12 months’ verifiable data, must analyse the participant’s energy consumption as well as energy efficiency and must identify energy-saving opportunities.

This may seem like a big undertaking, however, if we are to secure the future of our environment, ecosystem and our planet everyone has to play their part and it has to become an engrained practice in every-day life. For the time being the only way to make some organisations do this, is to reprimand energy-inefficient companies and enforce fines.

Website Industrial Compliance highlighted some surprising fines following Phase one…‘Some household names featured among companies hit with fines. They included Ebay (UK) Ltd, which is faced with a £12,150 fine. Gumtree also gets a £12,150 fine. However, this is not the top fine the EA has chosen to impose. Amdocs (UK) Ltd faces the biggest punitive measure, with a fine of £45,000 levied.’

Some may have thought the EA were not as strict or severe in phase One, as it was a new initiative. However, if that was indeed the case, they will certainly be stepping it up for Phase 2, as it is now an established requirement.

A senior ESOS official from the EA was quoted by Enistic Energy management Solutions ‘The first time around it was new for everyone. Companies did not know it was coming and if data was missing or the wrong procedures were applied then there was a degree of tolerance because of this and understanding of the situation. For ESOS Phase 2, however, companies do know it is coming and there will be no excuses accepted for why the correct data has not been collected or the correct procedures applied.’

There are four phases to the ESOS initiative, with the final fourth deadline currently set at 5 December 2027, so it’s not going to come to an end any time soon. This is an ongoing process and something every large organisation should get used to completing, embedding it into their policies and procedures as standard. Although the ESOS may come to an eventual end every organisation should make it the mainstay of their values and principles as well as strategy to become an overall environmentally friendly company. It’s the only plausible option going forward for us as a planet and has never been a more serious or prominent issue.

Ensure you don’t get caught out by this looming deadline, plan efficiently and research effective energy-saving initiatives.

ESOS largely supports our Net-Zero Target as a country. The Gov.uk website explains…‘The target will require the UK to bring all greenhouse gas emissions to net-zero by 2050, compared with the previous target of at least 80% reduction from 1990 levels.

The UK has already reduced emissions by 42% while growing the economy by 72% and has put clean growth at the heart of our modern Industrial Strategy. This could see the number of “green collar jobs” grow to 2 million and the value of exports from the low carbon economy grow to £170 billion a year by 2030.’

The Business Energy and Industrial Strategy (BEIS) Select Committee have been assessing energy efficiency policy for our country in the run up to the phase 2 deadline.

Who is the BEIS Select Committee? ‘The Business, Energy and Industrial Strategy Committee is appointed by the House of Commons to examine the administration, expenditure and policy of the Department for Business, Energy and Industrial Strategy (BEIS) and its associated public bodies. It is chaired by Rachel Reeves MP’ Parliament Website.

The (BEIS) Select Committee has also been focusing on the Net-Zero Carbon target for 2050, which was recently legalised by parliament. This, the ESOS initiative, Carbon Reduction Commitment (CRC), Streamlined Energy and Carbon Reporting (SECR), Climate Change Levy (CCL) and other initiatives combine to create an over-arching goal of being more ‘green’, energy efficient and kinder to our planet as a country. A massive realignment in our societies moral and ethical compass, to ensure the ultimate survival of earth.

Not prepared and need some help with your ESOS assessment? Our energy specialists can assist you with the hurdles you may face and get you through. Contact us today 02476 997 901 / enquiries@utilityteam.co.uk