Energy Savings Opportunity Scheme – The Pressure is On
The Energy Savings Opportunity Scheme is now well underway and most businesses will be aware of the 5th December compliance deadline. However, a recent survey conducted by Inenco has shown that more that half of businesses are yet to appoint a lead assessor and even more businesses have not yet started their site audits.
The Pressure is on!
The survey shows that 52% of businesses claim lack of time and resources as their biggest obstacle with 27% claiming data is a leading challenge. Despite these worrying statistics 76% of businesses still cited that they are confident that they are able to meet the deadline in December. For us, this raises some cause for concern.
The ESOS auditing process typically takes two to three months to complete and collection of data needed for audits can be time sensitive. On top of this there are only around 500-700 Lead Assessors and over 10,000 businesses that must comply with the scheme. Even businesses that plan to complete their own audits will need an auditor to vouch for the ‘competency’ of their nominated auditor and obtain ‘sign off’ for the selected audit sites, so the pressure is on to find and employ an ESOS Lead Assessor.
If businesses aren’t already feeling the pressure then rest assured that the last minute rush to engage a Lead Assessor before deadline will be a fierce competition between thousands of other businesses when demand for assessors exceeds supply.
Fines and Penalties
Failure to comply by the 5th December deadline can result in hefty fines and penalties which will certainly outweigh the cost of compliance:
Non-compliance:
Compliance bodies will have the power to publish information on non-compliance on their website such that this information will be available to the public. This will include:
- The name of the ESOS participant;
- details of the failure in respect of which a civil penalty has been imposed; and
- the penalty amount.
Failure to notify scheme administrator:
- A fixed penalty of up to £5,000: and/or
- an additional £500 for each day starting on the day after the date of compliance until the notification is completed, subject to a maximum of 80 days; and/or
- publication of details of non-compliance by the compliance bodies.
Failure to maintain adequate records to demonstrate compliance:
- A fixed penalty of up to £5,000; and/or
- the cost to the compliance body for undertaking sufficient auditing activity to confirm that an organisation has complied with ESOS; and/or
- publication of details of non-compliance.
Failure to undertake ESOS assessment:
- A requirement to conduct an ESOS Assessment by a date specified by the compliance body; and/or
- a penalty of up to £50,000; and/or
- publication of details of non-compliance.
an additional £500 per day penalty for each day starting on the day after the compliance date that the organisation remains non-compliant, subject to a maximum of 80 days; and/or
Failure to comply with an enforcement, compliance or penalty notice:
- A fixed penalty of up to £5,000; and/or
- an additional £500 for each day starting on the day after the date of compliance until the notification is completed, subject to a maximum of 80 days; and/or
- publication of details of non-compliance.
Making a statement which is false or misleading:
- A monetary penalty of up to £50,000; and
- publication of details of non-compliance.
Why the Energy Savings Scheme is more than just ticking boxes
While many businesses are struggling to find the time, or battling with data submissions, many feel that ESOS is just another regulation that they need to comply with in order to tick boxes and they are therefore delaying the process.
On the contrary, an ESOS audit provides an extensive overview of a business’ energy consumption and includes recommendations where energy can be saved. The Carbon Trust estimates that following these recommendations businesses can save at least 15% on energy which goes beyond covering the cost of compliance.
Beat the Deadline
The sooner a business complies with ESOS the sooner they can begin saving money. On top of this, the risk of exceeding the deadline can be a costly one. Don’t delay! Assign a Lead Assessor and begin your route to ESOS compliance before 5th December 2015.
Take a look at our ESOS Checklist to make sure you have everything you need to comply.
2EA® have two CIBSE registered UK ESOS Lead Assessors. 2EA® offer three main ESOS management packages to help meet the requirements of the Energy Savings Opportunity Scheme. For more information please get in touch.
