Power and renewables

ESOS compliance 2019 – are you ready?

ESOS Phase 2

Is it that time already? Well, nearly. The December deadline is fast approaching, and non-compliance could land you with penalties of up to GBP 50,000

The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment scheme for organisations in the UK, established by the government to implement Article 8 of the EU Energy Efficiency Directive. Businesses that meet the qualification criteria must carry out ESOS assessments every four years. These assessments are audits of the energy used by their buildings, industrial processes and transport to identify cost-effective energy saving measures.

Does your business need to comply?
If your business employs over 250 people, or has an annual turnover over of EUR 50 million (GBP 44,845,000) and an annual balance sheet over EUR 43 million (GBP 37,143,615*) you need to comply with ESOS by 5 December 2019.

The Department for Business, Energy and Industrial Strategy (BEIS) views the ESOS scheme as an important aspect within the wider objective of businesses and industry improving energy efficiency by at least 20% by 2030.

Non-compliance penalties
If the above conditions apply to your organisation, it is vital you comply with the ESOS regulations. Non-compliance fines far outstrip the cost of complying. Penalties can be up to GBP 50,000, and in the past two years alone, the Environment Agency has enforced penalties totalling over GBP 250,000. This figure represents just the UK and any organisation operating across Europe can receive penalties in every EU country they operate in.

With less than two months to go until the deadline, we recommend that organisations begin their ESOS compliance now. Our experts are experienced and skilled in ensuring compliance. We have a thorough understanding of the ESOS requirements and sampling allowances, which allows us to only audit the minimum number of sites to reduce compliance costs and ensure you meet the strict timeframe.

Maximise value and go beyond simple compliance
Whilst compliance is the immediate priority, the ESOS can also be an excellent opportunity to look at energy consumption strategically and plan for your organisation’s future. DNV offers more than simple compliance, we provide real value and cost savings opportunities. Our team is highly technical, with a wealth of energy efficiency experience across several sectors and industries. This means our audits will provide real savings opportunities tailored to your business—not a stock list of measures for every site.

DNV is a large multi-national consulting firm, which means we have auditors all over the EU. In addition to ESOS compliance in the UK, we can also help your organisation conduct Article 8 compliant audits in all EU member states.

Our team ensures there is a consistent approach to all audits (UK or EU wide), which allows the results to be easily compared across an organisation’s portfolio.

If your company is looking at energy more widely, DNV can provide long term strategic support (roadmaps), energy storage and renewable assessments and Energy Management System ISO 50001 gap analysis and implementation support. Any portion of your business that is ISO 50001 certified will not need to conduct audits to be ESOS compliant.

It’s not too late to achieve compliance. Contact us for more information and to find out how we can help.

*If your accounts are quoted in pounds sterling, you should use the Bank of England exchange rate between the euro and pound sterling at close of business on the qualification date.