ESOS, SECR, Brexit & The Price of Fish
As most are aware ESOS stands for the Energy Savings Opportunity Scheme and was publicised in 2013/14 prior to going live on the 5th Dec 2015.
What some may not be aware of is that although it is UK legislation it is based on directives and a requirement from the Europe Union. It is the UK’s interpretation of The Energy Efficiency Directive, a regulation which mandates energy efficiency improvements within the European Union. Something we embraced a lot quicker than the other member states upon its introduction.
As we move into the second stage of ESOS we have an additional piece of legislation; The Streamlined Energy Carbon Reporting Scheme (SECR). This was created due to The Carbon Reduction Commitment Energy Efficiency Scheme (CRC) being abolished at the end of the 2018-19 compliance year as part of the March 2016 budget announcement. As a result, it would be replaced with the Streamlined Energy & Carbon Reporting (SECR) framework and subsidised by an increase in the Climate Change Levy (CCL). The SECR would substitute the guidance and reporting obligations. The CCL, as the UK’s only carbon tax on energy bills, would increase to cover the financial properties. Both of which begin at the start of April 2019.
The SECR is a new piece of legislation coming into effect from April 2019 and is an annual report to be sleeved into a companies end of year report. Additionally, a stipulation of the reporting is to highlight ESOS details, with a caveat that you could mention key successes achieved by the business over the reporting period.
One of the most widely discussed topics in energy has to be funding for projects, in particular, which measure or recommendation given, to do first. ESOS 2 and SECR have made this easier and more achievable, due to their intrinsic involvement. The vehicle for delivering the projects is ESOS 2, the need to analyse data as part of the process highlights to the end user exactly how much energy they are using and more importantly what they are paying for it.
Once the process has begun and the end user has reviewed the opportunities, a strategic assessment of the report and their performance on procurement will highlight further opportunities moving forward. At this stage the introduction of different options is essential, not just one option, a variety of funded options are widely available and should be reviewed and assessed appropriately.
Our Revolving Green fund (RGF) should appeal to many based on its interest free nature and upfront lump sum. Having the ability to deliver proven energy reduction projects off balance sheet and 12 months prior to go-live date, as provided by the RGF Fund, may provide a much needed fillip post Brexit to all sectors. Although post Brexit, there will be a lot of scepticism and scaremongering. We’re sure one thing we would all agree, the less energy we all consume the better we will be across the board and a step closer to our decarbonisation (2050) objectives.
What has all this got to do with the price of fish some might ask? truth be told, not a lot, unless you are a fishmonger or Harry Ramsden. However, if a company consumes less energy, procured smartly and reduced intelligently, utilises ESOS and reports back to their company. Their successes via SECR – in a post Brexit environment, will have more margin to reduce the cost of their product. They will be more competitive on a global scale and they will fully understand the true cost of making their product. Thus, future proofing yourself in a post Brexit environment.
To talk about our Revolving Green Fund, an interest-free fund available upfront to subsidise your green initiatives please call us, 02476 997901 / 07545 209385 or email firstname.lastname@example.org / email@example.com .
Article written by: Ian Catchpole, Business Development Manager