Member Article

Act now on energy reporting compliance to seize the financial opportunity, says Thames Valley energy consultancy

Local businesses should act swiftly to achieve cost savings from ESOS (the Energy Savings Opportunity Scheme), advises low carbon expert Concept Energy Solutions.

ESOS – the government’s mandatory energy assessment scheme for large UK organisations is now in its second phase.

As home to the headquarters of some of the UK’s largest firms, hundreds of companies in Reading and the South East are likely to be affected.

And while the deadline for compliance is not until December 2019, leading carbon reduction expert Concept Energy Solutions is advising organisations to act now to avoid delays and make the most of opportunities for savings.

Turn costs into financial opportunities

ESOS requires large organisations (defined as having more than 250 staff or an annual turnover of around £39m) to undertake an assessment of their overall energy use, and identify cost-effective energy saving measures. Recommendations might include initiatives such as lighting or heating upgrades, but also are likely to highlight opportunities for reduction where little or no outlay is required.

Complying with ESOS carries a cost for those organisations affected. But the audit can identify potential savings of 13.5 times greater than the cost of compliance, according to the Environment Agency which administers the scheme.

“By starting the process now, organisations have a chance to implement some of the energy saving recommendations and recoup the cost of the audit within the same financial year,” says Peter Stockwell, Managing Director of Concept Energy. “The process then becomes cost-neutral in the short term. Over time these energy reduction initiatives can deliver long term financial benefits.”

Avoid bottlenecks

There is also a risk of delays for organisations that decide to wait until the last minute. ESOS requires an audit from a qualified lead assessor, and there is only one for every 10 organisations.

The shortage of quality lead assessors means that organisations which are slow to act risk failing to comply on time. In phase one of ESOS, the Environment Agency sent out at least 300 enforcement notifications and has commenced civil penalty proceedings against a number of non-compliant organisations.

“By acting now, firms can benefit from long-term strategies that result not only in compliance, but in energy savings and operational efficiencies,” says Peter Stockwell. “Energy legislation needn’t be a burden or a ‘tick box’ exercise – the financial benefits can be enjoyed straight away.”

This was posted in Bdaily's Members' News section by Concept Energy Solutions .