Brixsus Energy

ESOS Guidance - What you need to know

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Courtesy of Brixsus Energy

THE ESOS REGULATIONS - HOW IT MAY IMPACT YOU.

ESOS has been effective from July 2014, it's sole function is to guarantee large companies learn to adopt energy efficient practices

The regulation is compulsory for firms that employ more than 250 people, or, for firms with fewer than 250 employees but with a turnover more than Euro 50m.

THIS IS WHAT IT IS ABOUT IN A NUTSHELL:

Any company in the UK that falls under the classes mentioned earlier within this post, will have to complete compulsory energy assessments, at a minimum, once every 4 years.

By December 15, all businesses must be certified.

AM I GOING TO BE IMPACTED?

Although only larger sized companies will be caught by the regulation, the amount could still be over seven thousand businesses.

Whether or not you'll have to get ready for this legislation is not a straight forward endeavor, the above requirements are not definitive.

While ESOS may only be applicable to major businesses, those companies with a smaller regional presence (ie - a national retailer who also has some small high street shops) will also be affected.

OK, MY BUSINESS IS AFFECTED. WHAT TO DO NOW?

In order to comply an Assessor will have to perform an energy efficiency evaluation.

The companies processes will be analysed to gauge energy consumption.

Determine areas of significant energy consumption, accounting for no less than 90% of your total energy consumption.

Identify cost-effective energy efficiency recommendations for areas of significant energy consumption.

Compliance has to be reported to the EA (Environment Agency).

The ESOS audit will be different from EPCs as the review will depend upon actual energy usage as opposed to theoretical presumptions.

SOUNDS LIKE MORE RED TAPE IF YOU ASK ME!

Whatever way you look at it, this is more red tape from Brussels, but complying with the legislation can yield significant real world cost savings.

If the recommendations of the audit are successfully carried out, it is not uncommon for Occupiers to see a 20-30% reduction in their energy bills.

We've handled occupiers who have effectively saved several hundred thousand pounds on their annual energy expenditure as a result of implementing steps pointed out by the scheme.

With penalties of up to fifty thousand pounds, is it worth the risk to avoid compliance?

TO SUM IT ALL UP

While these measures may be compulsory, these are things that companies really should be implementing anyway, with some firms saving in excess of £100,000 on their energy bills following site audits, there is little justification not to.

Energy costs are possibly one of the simplest and most significant areas where companies can reduce expenditure.

ESOS Legislation does add to the already cumbersome raft of sustainability laws such as The Carbon Reduction Commitment, like it or not, they are all here to stay.




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