11th AUGUST 2015
GREEN TUESDAY • Data Management • Legislation • Compliance
A Unique Perspective
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A Unique Perspective | Green Tuesday | 11.08.2015
UK: Businesses busy complying with the Energy Savings Opportunity Scheme (ESOS), shows DECC survey In 2014 DECC commissioned ‘IFF Research’ to conduct a series of 6 waves of a tracker survey with large businesses in scope of ESOS. Four waves of the research have been completed – in September 2014, November 2014, March 2015 and June 2015. Each wave asks 100 large businesses about ESOS and energy audits. The results are representative of the UK’s large business population.
In 2014 DECC commissioned ‘IFF Research’ to conduct a series of 6 waves of a tracker survey with large businesses in scope of ESOS
What is the Energy Savings Opportunity Scheme (ESOS)? ESOS is a new mandatory government policy that requires ‘large’ companies to undergo compulsory energy audits. ESOS aims to increase energy efficiency to improve business profits as well as mitigate climate change, in response to Article 8 of the EU Energy Efficiency Directive. The qualifying criteria for ESOS is as per the below:
ESOS is a new mandatory government policy that requires ‘large’ companies to undergo compulsory energy audits
1) An undertaking which has 250 or more employees in the UK. 2) An undertaking which has fewer than 250 employees, but has: a. an annual turnover exceeding €50m (£38,937,777) and b. a balance sheet exceeding €43m (£33,486,489). 3) Part of a corporate group which includes an undertaking which meets criteria (1) or (2) above. Organisations that qualify for ESOS must carry out ESOS assessments every 4 years. These assessments are audits of the energy used by their buildings, industrial processes and transport to identify cost-effective energy saving measures. Qualifying organisations must carry out their ESOS assessment by 5 December 2015 and notify the Environment Agency.
Organisations that qualify for ESOS must carry out ESOS assessments every 4 years
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A Unique Perspective | Green Tuesday | 11.08.2015
The majority of organisations are aware of ESOS and are taking steps to comply according to the survey Four hundred businesses have now been surveyed and, with less than five months to the ESOS compliance date of 5 December 2015, the findings provide promising news about how businesses are complying with the new scheme, which is expected to save businesses over £250m per year on their energy bills. Contrary to earlier indications from other surveys, DECC’s research suggests that in June 2015, 89% businesses had heard of ESOS. This is a significant rise in awareness compared to findings in November 2014 which showed that just over half of organisations (56%) had heard of the scheme. In June 2015, 78% of businesses were aware that they must comply with ESOS by 5 December 2015. Over half of businesses (56%) reported that they have already taken steps to start complying with ESOS and 94% of those intending to conduct an audit were confident that they would be compliant by the deadline. There has been increasing support for the view that conducting an ESOS survey would help organisations identify cost-effective energy savings, with 44% (up from 28% in November 2014) of those surveyed in June 2015 holding this view. Only 2% of respondents thought that their businesses would fail to act on findings from their ESOS audits.
There are less than five months to the ESOS compliance date of 5 December 2015
There has been increasing support for the view that conducting an ESOS survey would help organisations identify cost-effective energy savings
The ESOS deadline is looming with non-compliance by 5 December 2015 incurring a penalty of up to £50,000 However with less than five months to go, the ESOS deadline will be here before you know it. By getting started now, you’ll be able to get a clear picture of the savings you can make from energy efficiency measures identified through ESOS and if applicable, integrate this in to your business strategy to implement the audit findings.
There are civil penalties for specified breaches of the ESOS Regulations
There are civil penalties for specified breaches of the ESOS Regulations. Amongst others, failure to undertake an energy audit may attract an initial penalty of up to £50,000, a daily penalty of £500 of up to a maximum of 80 working days and publication of the penalty. Separately, failure to notify, can attract an initial penalty of up to £5,000, a daily penalty of £500 up to a maximum of 80 working days and publication.
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A Unique Perspective | Green Tuesday | 11.08.2015
Next Steps for ESOS Participants The compliance date for Phase 1 of ESOS (5th December 2015) is coming. Participants need to act now to:
The compliance date for Phase 1 of ESOS (5th December 2015) is coming
1) Determine the best route(s) to compliance for their business. 2) Implement the chosen route(s) to compliance and notify the Environment Agency that you are ESOS compliant by 5th December 2015. If you are in scope of ESOS but not yet taking steps to comply or to check if you are captured by ESOS and then how you can become compliant, please contact EnergyQuote JHA.
EU: Energy Union must not focus exclusively on climate change Today, the EU is responsible for 11% of global greenhouse gas emissions as opposed to 15% by the US and 29% by China. Europe’s proportion is set to further decline in the future and therefore the EU continues making ambitious statements before of the COP21 conference that will take place in Paris later this year. However, there is the price that we are all paying for this. Industry gas prices are three to four times higher in the EU than in the US, Russia and India. The same goes for electricity which European companies buy for twice as much as their American and Russian competitors. When it comes to end-consumers, EU household electricity prices have on average risen 30% from 2008. The future Energy Union has the potential to reduce EU’s competitive disadvantage, encouraging Europe’s indigenous energy production. All available resources, including nuclear power, low-emission technologies, and renewables shall be put to work to the benefit of EU industries and its citizens. No fuel or technology which potentially contributes to bringing down energy costs must be discriminated against.
Today, the EU is responsible for 11% of global greenhouse gas emissions as opposed to 15% by the US and 29% by China
Industry gas prices are three to four times higher in the EU than in the US, Russia and India
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