Large businesses prepare for Energy Savings Opportunity Scheme (ESOS) Phase 2 compliance as deadline looms

The deadline for the second phase of the UK government’s Energy Saving Opportunity Scheme (ESOS) of December 5, 2019 is fast approaching. Organisations with more than 250 people or a turnover in excess of €50M (£44,845,000) are affected by ESOS in the UK or the EU Energy Efficiency Directive (EED) in Europe, mandating that comprehensive energy efficiency assessments are carried out once every four years. The purpose of ESOS is to identify cost-effective energy-saving measures across an organisation to help achieve maximum financial value from greater energy efficiencies.

“The ESOS energy audit requirement proved a challenging exercise for many companies first time round in 2015. According to the Environment Agency (EA) fines totalling £157,770 were levied at 15 companies that failed to meet compliance,” said Niko Kavakiotis, head of the Building Performance & Sustainability UK. “The end of phase 1 also revealed that 300 enforcement notices to non-compliant organisations, plus 200 more were issued in the financial year.”

All companies that participated in phase 1 were expected to undertake another in the second phase where enforcement is expected to be more stringent than previous. After the first phase 2015 legislation was updated across several countries across Europe applying new deadlines; adding extra complexity for multinational compliance. ESOS success can require both organisational and technical modifications but there are guidelines and tools in place to assist in assessments. It is also advised that an experienced lead assessor, familiar with the compliance scenario, is appointed to execute and oversee energy audits and overall ESOS assessment.

Kavakiotis added: “Compliance is not to be feared. Implementing recommendations from an ESOS II review can have genuine financial and operation benefits with the aim of helping to identify the most cost- and time-efficient route to compliance that offers the maximum benefit. Our counsel would be to partner as early as possible and for businesses to apply a three-rule approach: reduce, produce and procure. Drive down energy consumption to reduce costs and environmental impact of your organisation. Create a more sustainable energy mix and store and generate energy on site to reduce the reliance on the grid. And procure energy at the best price while ensuring utility incentives are achieved. ESOS compliance is a force for good; to drive energy efficiency and promote sustainability.”

An advisory webinar: ESOS/EU EED Compliance! Get compliance and excellence with expertise from Siemens is scheduled for 3pm UK 02 October 2019 and will be hosted by Niko Kavakiotis, head of the Building Performance & Sustainability UK and Maximilian Sanz Munoz, lead consultant enterprise sales Europe. Siemens will explain how to make the best out of this directive, setting the stage for cost savings, resilience and sustainability.