ESOS Phase 2 has arrived – it’s time to start planning to ensure your business is fully compliant by 5th DECEMBER 2019
WHAT IS ESOS?
ESOS is the mandatory Energy Savings Oportunity Scheme for organisations in the UK that meet the qualification criteria and is operated by The Environment Agency.
Organisations which qualify for ESOS must carry out ESOS assessments every 4 years. These are audits of the energy used within their buildings, industrial processes and transport fleets to identify cost-effective energy saving measures.
Organisations must notify the Environment Agency by 5th of December 2019 that they have complied with their ESOS obligations.
Following on from the completion of Phase 1 ESOS, the Environment Agency, Scottish Environment Protection Agency (SEPA), Northern Ireland Environment Agency (NIEA) and Natural Resources Wales (NRW) have jointly advised organisations that they can now start carrying out energy audits as part of the compliance process.
ARE YOU ELEGIBLE?
If your business meet any of the criteria which define a ‘large undertaking’ as of 31st December 2018, then yes.
A large undertaking is:
any UK company that either:
- employs 250 or more people, or
- has an annual turnover in excess of 50 million euro (£38,937,777), and an annual balance sheet total in excess of 43 million euro (£33,486,489)
- an overseas company with a UK registered establishment which has 250 or more UK employees (paying income tax in the UK)
You must also take part in ESOS if your business is part of a corporate group within which the combined value of all entities meets these criteria.
Where a corporate group participates in ESOS, unless otherwise agreed, the highest UK parent will act as a ‘responsible undertaking’ and be responsible for ensuring the group as a whole complies.
UK registered establishments of an overseas company will also need to take part in ESOS (regardless of their size) if any other part of their global corporate group activities in the UK meet the ESOS qualifying criteria.
Any company with ISO5001 does not need to complete the ESOS scheme.
If you are unsure if your group qualifies for ESOS, please contact your account manager with a copy of your company structure and we can confirm with the relevant scheme administrator.
If your business qualifies for ESOS there are three important steps which you must take before the compliance date of 5 December 2019, with which our team of ESOS qualified assessors can help.
IMPORTANT COMPLIANCE STEPS TO FOLLOW:
1 – measure total energy consumption over a 12 month period
2 – conduct audits to identify cost-effective energy efficiency opportunities
3 – report compliance to the national scheme administrator - the Environment Agency in England, SEPA in Scotland, NIEA in Northern Ireland and NRW in Wales.
What Happens if I qualify and do nothing?
If your business is found to qualify and no submission is made by 5th December 2019, there is an up to £50,000 fixed fine and an ongoing daily fine until submission is made.