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ESOS: is it time to take action?

Liz Minshall
Jan 17, 2018

2018 brings us closer to the Energy Savings Opportunity Scheme (ESOS) compliance deadline of 5 December 2019. The ESOS qualification date is at the end of this year; therefore, have you turned your attention to ESOS compliance yet?

How to ensure compliance

We have already received a number of enquiries, from a range of businesses, asking what needs to be done to ensure compliance. Some of the businesses we have spoken to will be completely new to ESOS, mainly due to growth over the last couple of years. Others have previously complied and are aware of the need to meet the criteria again, so wish to be proactive by taking action now.

The most common question we get asked is “What can I or should I be doing now?”

For companies that have experienced recent growth and therefore haven’t previously needed to comply with ESOS, we suggest that a number of checks are carried out to determine whether they are actually obligated. There is a ‘two-year rule’ in place, which requires that company size is consistent over a consecutive two-year accounting period. If the business only meets the criteria for the first time in the accounting period ending on or before 31 December 2018, it is likely that it will not need to comply for the next qualification date.

Are you unsure if your business needs to comply? We have produced a useful ESOS guide, which outlines some of the considerations for the thresholds (all you need to do is submit your email address and we will send this to you). This is a great starting point! Alternatively, you could complete our quick, online ESOS assessment tool which will help you to identify whether or not your business is obligated.

Next steps

If you are certain that your company has met the criteria and will continue do so, you might be wondering what next steps you need to take?

Now is the perfect time to make sure that energy monitoring is in place, to capture an accurate 12 months’ worth of data for your total energy calculation. Please remember that you need to include the 31 December 2018 and that you need to capture all energy consumption and sources. There are NO exemptions. You might have records for the main consumption, such as electricity, but do you have monitoring in place for smaller or ad hoc supplies? What we often find is that some companies have had to put new mechanisms in place to ensure that they have adequate records, such as staff expensed mileage.

Another initial step should be to identify the business’s Energy Auditor or Lead Assessor (LA). In the previous phase, due to the demand for Lead Assessors, we saw their fees increase the closer we got to the compliance date; therefore, make sure that you identify your LA sooner rather than later to try and keep costs down. If you already know the company’s energy consumption it may be possible to carry out some energy audits in 2018.

ISO 50001

For those who want to engage with the energy management process in more detail, we suggest implementing ISO 50001 as a route to compliance. Doing so will provide peace of mind for future phases and will also integrate energy management into core business processes, helping to generate cost savings.

Valpak can help

Whether you are new to ESOS or have previously complied and you are getting ready for phase 2, Valpak can offer a service to help you ensure compliance, contact us today for further information.

Alternatively, why not join one of our free Support Sessions or Preparing for ESOS Webinars, or call us on 01789 208 725 with any questions that you might have.

Disclaimer: The opinions expressed in this weblog represent those of the individual authors and not those of Valpak Limited or any other organisation.