What is ESOS?
ESOS is a mandatory energy assessment scheme that requires large companies in the UK to undertake compulsory measures to review their energy consumption.
The scheme is implemented by Article 8 of the EU Energy Efficiency Directive (2012/27/EU) which legally compels companies to undertake energy audits in an effort to reduce consumption and usher in savings. You must carry out these assessments every 4 years to ensure compliance or you may face financial penalties ranging from £5,000 – £50,000.
The qualification criteria is simple.
You qualify if, on the 31st December 2014, –
A) You are a company that employs 250 persons or more.
B) Your annual turnover is in excess of 50 million Euro with an annual balance sheet total of 43 million Euro.
If your company qualifies –
ESOS places a legal requirement upon your company to complete an energy assessment in order to ensure all large UK companies are considering the impact of their energy consumption.
Your company can meet this obligation by carrying out an ESOS compliant energy audit that determines in what areas your company can reduce its energy consumption.
A company may also comply by implementing Green Deal Assessments, Display Energy Certificates or ISO 50001 certified energy management systems – but these must cover 90% of the significant energy consumption of your business.
You are required by law, to carry out your ESOS assessment and notify the scheme administrator by the 5th December 2015. Failure to do so may result in financial penalties.
We are already in Phase 1 of ESOS and the data gathered from now until your compulsory assessment is what will be used to ensure your company can prove compliance.
How Can We Help?
ESOS should not be considered a tedious nuisance.
Here at MDG Group, we can remove all of the stress associated with this new legal requirement and carry out the energy audit on-site, accommodating you. We will not only ensure you have complied with the scheme (avoiding any financial penalties), but also make cost effective recommendations to improve efficiency and reduce your business expenditure – making the most from this legal obligation.
The scheme affords companies the opportunity to analyse their business energy consumption and implement measures to save them money, year on year.
The cost of a full ESOS compliant audit is small in relation to the amount your company could save – with the UK Government predicting savings of £2bn to be achieved by the companies that qualify.
How Do I Get the Ball Rolling?
This part is simple.
Get in touch with us if you think ESOS applies to you. Through a quick discussion we can determine if your company will need to carry out an energy audit. Your company may already be compliant if you have implemented some of the alternative initiatives, such as Green Deal Assessments, Display Energy Certificates or ISO 50001 energy systems. It is our goal to put your mind at ease and discover if your company is required to carry out any further work.
If more needs to be done by your company to ensure compliance, we will organise a meeting to discuss what actions will need to be taken to ensure compliance is fully met. This will include our expert energy advisors and auditors analysing your consumption data, visiting your site to carry out a full energy assessment, and delivering an easy to follow recommendation report that will allow your company to make the most out of the scheme.
We will also take away all of the administrational stress by keeping your compliance evidence pack up to date and by making sure the scheme administrator is notified by the deadline.
Our goal is to ensure your company will not have to worry about meeting the requirements. Not now, or in the future.
How exactly do I know if this applies to my company?
– If you are defined as a ‘large undertaking’ then the scheme applies to you. In short this is when you employ more than 250 persons, or your annual turnover exceeds 50 million Euro with a balance sheet exceeding 43 million Euro. If this is the case, then you MUST comply with ESOS.
Do I still need to comply if I am part of a group?
– Yes, if any part of the group is required to comply with ESOS, then the whole group must comply.
Am I legally required implement the recommendations of the audit?
– No, you are not required to implement the measures advised by the audit. We believe however, that the audit provides a great opportunity to make changes to your business energy consumption. Why pay for compliance without receiving any of the benefit?
Are there any exceptions?
– No, if your company qualifies you must comply with the EU Directive. An ESOS audit is not compulsory, but only if you have fulfilled the compliance conditions via other recognised means. This may be by implementing Green Deal Assessments, Display Energy Certificates or ISO 50001 energy management systems.
What are the deadlines?
– You must decide upon your qualification status by the 31st December 2014 and submit all the paperwork concerning your compliance/audit by the 5th December 2015. It is important to start considering ESOS now, as your company will need to rely on credible data to prove compliance and make the most out of the energy audit.
It seems a long way away, so why worry now?
– We are not advising that companies panic – but the sooner you implement measures action to ensure compliance with the scheme, the sooner your company will reap the procedural/financial reward. The financial penalties are also large, and risking non-compliance by reacting slowly and not carrying out the audit by a qualified practitioner runs the risk of facing these penalties.