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Emma Hird, client opmisaon manager at Inspired Energy, gives her five top ps for businesses looking to make the most of the government’s Energy Savings Opportunity Scheme (ESOS)
ith the UK Government officially legislating to hit net zero carbon emissions by 2050, the spotlight is firmly on businesses, particularly those in energy intensive sectors, to outline plans to reduce carbon emissions or
switch to procuring energy from renewable sources. Many businesses will have already had to comply with Phase 1 of the Energy Savings Opportunity Scheme (ESOS), which requires companies to both submit energy data and identify measures they can take to reduce energy consumption.
However, while reporting under ESOS is mandatory, implementing the identified energy saving recommendations isn’t. This means that those businesses that are not acting on their own recommendations are missing out on significant savings, both in terms of cost and carbon. We often hear several reasons for this, from a lack of boardroom support to there simply not being enough resource to implement them. While many businesses will simply compile a list of energy savings recommendations for their organisation and submit their audit, savvy energy managers will take action on the opportunities identified within ESOS audits. So, here are five things every business needs to know to make the most of the ESOS opportunity: 1. Check whether you qualify – ESOS applies to all businesses that meet the following criteria: Employs 250+ people. Has an annual turnover in excess of 50 million Euro and an annual balance sheet total in excess of 43 million Euro. Is an overseas company with a UK registered establishment which meets either of the previous two criteria. 2. Prepare your data early – Many businesses that qualify for ESOS will also have to comply with the other mandatory reporting scheme which came into force on 1 April, Streamlined Energy and Carbon Reporting (SECR). There are areas of overlap for businesses affected by both ESOS and SECR, including the requirement to gather energy data. However, to comply with ESOS, a business will also need to identify potential energy saving opportunities, and this is where there is a chance to make some real savings. 3. Take action – ESOS guidelines state that energy saving recommendations should be reasonably practicable, cost effective to implement and cost-effectiveness must be assessed by comparing the reduction in units of energy or energy spend with the cost of implementing the measure. This should make it relatively straightforward to build the business case for adopting your efficiency recommendations.
Businesses aren’t required to implement their recommendations in order to comply with ESOS, but they could be missing out on opportunities to reduce its consumption and energy bills if they don’t act on their own unique recommendations. It makes sense to use any means possible in order to mitigate the costs of becoming compliant as well as forward increases in non-commodity charges. For example, in Phase 1, we identified savings of over £14m for our clients.
ENERGY MANAGEMENT ESOS Phase 2 – the countdown is on
4. Compliance is mandatory – Businesses must be compliant with ESOS Phase 2 in time for the deadline (5 December). If the deadline is missed, then a business will face financial penalties that could easily outweigh any potential savings, with fixed and recurring financial penalties easily exceeding £50,000.
5. Finally, see energy efficiency as an investment not an expenditure – If a business’s only goal is compliance when it comes to schemes such as ESOS, then it is likely to be a cost. However, if a business sees it as an opportunity to improve energy efficiency, then substantial savings could be delivered.
The countdown is on
The countdown for compliance is now on. Lessons learned from ESOS Phase 1 are that many organisations under- estimated the preparation required to report on their compliance. In fact, 2,500 submitted comply late notifications. Reasons uncovered during qualitative research for delayed and late compliance included low priority on energy efficiency and ESOS, internal complexity factors, as well as external factors relating to demand for ESOS lead assessors in the run up to the deadline. The message from the Environment Agency is clear – don’t get caught out! So, if your business qualifies and hasn’t started its ESOS Phase 2 compliance yet, time is running out. Working with experts in energy optimisation to review recommendations and help prioritise and act upon them makes sense, both in terms of reducing cost and carbon, and demonstrates a real commitment to the net zero goal.
www.inspired-esos.co.uk Local network operations power ahead
nergy Assets’ independent local network businesses are powering ahead, with more than 50,000 electricity and gas supply points taken into ownership or contracted since launch just over a year ago.
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Energy Assets Networks (electricity) and Energy Assets Pipelines (gas) have grown their asset management portfolio rapidly thanks to partnerships with contractors, house builders and developers across Britain.
As one of Britain’s leading independent metering services, asset management and utility network construction companies, Energy Assets took the strategic decision to move into local energy network ownership in 2018 to capitalise on its in-house multi-utility design and construction expertise.
Since launch, the network companies have won contracts with numerous independent connection providers and developers, thanks to innovations in asset-based finance and a flexible approach to asset type adoption in house building and in industrial and commercial markets.
“Britain’s housebuilding programme is accelerating, so our focus is on helping house builders and contractors speed up network design and approvals to deliver projects in the
shortest possible timescale,” says John McLuskey of EAP. “At the same time, we are also engaging with the industrial and commercial sector to add value to developers involved in building schemes that range from retail units to data centres. “By partnering with us, developers can realise the inherent value in utility asset rebating to offset network construction costs, while receiving expert support in areas such as certification and compliance, making the whole process as efficient as possible.”
Energy Assets Group offers utility suppliers, developers, contractors and industrial and commercial end-users a broad spectrum of expert multi-utility metering and energy-related services. This includes the provision and management of new and replacement meters through its Meter Asset Management division; design and construction of multi-utility networks; OFGEM approved local energy network (final mile) ownership and management; full MOP, MAP DC/DA & AMR data management services; and holistic downstream and upstream utility network engineering support, including complex meter module design and build. The Group also enables customers to collect and analyse energy consumption data and provides a suite of control
32 BUILDING SERVICES & ENVIRONMENTAL ENGINEER AUGUST 2019 ‘ Many
businesses that qualify for ESOS will also have to comply with the other mandatory reporng
scheme which came into force on 1 April
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technologies to help drive energy efficiency and carbon reduction.
www.energyassetsnetworks.co.uk Read the latest at:
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