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ESOS Phase 2 – Be Prepared!

Posted by SSE Enterprise Energy Solutions on 18-Oct-2017 16:39:13

We’re in Phase 2 of the Energy Savings Opportunity Scheme (ESOS) and this week the Environment Agency (EA) released its latest newsletter urging qualifying companies to ‘be prepared’ and start their compliance process as soon as possible.

You can start working on your energy audits and identification of energy savings opportunities now: to comply with ESOS, your energy audit needs to have at least one year’s energy measurement, but this can be from any time between 6 December 2014 and 5 December 2019.

The EA has also released an ESOS interim evaluation report including details on the benefits of the scheme and the impact on organisation’s energy efficiency.

Timing is everything

Environment Agency notification data for ESOS shows a significant spike in compliance notifications one month prior to the 5 December 2015 deadline. This last minute activity led to increased prices for assessor services and a fall in perceived value for money.

In some cases, organisations were delayed in complying with ESOS due to the lack of available assessors to conduct site visits.

This highlights the importance of selecting your ESOS Lead Assessor without delay and starting your compliance process now.

The outcomes of ESOS (so far)

40% of compliant organisations surveyed reported that ESOS led to an increase in interest, including at board-level, in energy efficiency.

Since early 2015, a third of compliers surveyed by the EA had introduced or updated an action plan or strategy to meet their energy efficiency goals.

Four in five complier organisations reported some form of energy efficiency improvement in the 18 months prior to mid-2016. A third of these organisations reported that ESOS had been influential in their decision to implement at least one of these improvements.

82% of compliers who owned or leased vehicles reported implementing fuel efficiency improvements within this same time period. Around one in five of these went on to attribute at least one of the fuel efficiency improvements to the influence of ESOS.

The benefits of ESOS

The ESOS Impact Assessment estimated a benefit from energy savings of around £2.2bn. In addition, projected improvements in air quality were valued at £320m, with the value of future abatement costs associated with reduced greenhouse gas emissions valued at £280m.

ESOS encourages the prioritisation of energy efficiency and the establishment of longer-term strategies within businesses – helping with decision making and investments.

A number of broader benefits of ESOS are anticipated in the longer-term, including improvements in energy efficiency, reduced maintenance spend, improvements in productivity and increased output (GVA).

Wider social benefits are also predicted. Reductions in energy consumption will lead to lower non-traded CO2 emissions and better air quality, and reduce the number of EU ETS allowances UK businesses need to buy.

Reducing energy demand through energy efficiency also improves security of supply. It reduces the UK’s exposure to volatile international energy markets and means less energy infrastructure is required, lowering the overall costs of the energy system.

Prepare now with SSE Enterprise Energy Solutions

With qualified in house Lead Assessors, we can carry out your ESOS assessment and officially sign off Energy Audits and Display Energy Certificates which are two of the four available methods to help you achieve ESOS compliance.

As well as recommending a strategy for compliance, we can also complete any energy efficiency upgrades identified in your audit – helping you achieve the benefits highlighted above.

Get in touch today to prepare for ESOS Phase 2 and identify savings.

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Topics: Energy Optimisation, ESOS

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