Government launches Energy Savings Opportunity Scheme
Industry reaction to the Government’s Energy Savings Opportunity Scheme has been quick, extensive and positive — but with caveats. The scheme requires larger companies in the UK to carry out an ESOS assessment and notify the Environment Agency by 5 December 2015, followed by an assessment every four years.
If energy-saving recommendations that accompany these assessments are carried out, the Government estimates that businesses will reduce their energy costs by at least £250 million by 2016 and a total of £1.6 billion by 2013. The Carbon Trust, however, believes that the potential savings could be two to three times higher.
The scheme affects over 7000 companies, namely those with over 250 employees, or fewer than 250 employees but with an annual turnover exceeding €50 million (£40 million) or a balance sheet exceeding €43 million (£34 million). ESOS is the UK’s way of implementing Article 8 of the EU Energy Efficiency Directive. Assessments must be carried out by qualified energy assessors.
The Department of Energy & Climate Change states that an ESOS audit can identify potential cost savings more than 13.5 times greater than the cost of the audit.
Hywel Davies, CIBSE’s technical director, comments, ‘DECC has recognised the need for qualified and expert energy assessors like CIBSE’s for this important scheme, which will help large enterprises realise the real business benefits of taking action to improve their energy efficiency. By not setting up yet another new scheme DECC have been able to ensure that the average cost to a business for an ESOS assessment will be around £17 500. The anticipated average savings from acting on the recommendations made are approximately 10 times that figure, so this is potentially very beneficial to participating businesses.’
Robin Hale, director of the Energy Services & Technology Association, said, ‘The obligation on larger businesses to complete a regular audit of energy use should, if they follow up on the opportunities identified, benefit the business itself and the economy as a whole.
‘The advantages from firms adopting a comprehensive energy-management framework have been proven time and again, but studies continue to show that much more could be done. We welcome this initiative from the Government to engage more businesses in cutting energy consumption and thereby reducing their own fuel bills. We will work with them to make the case for follow up implementation, which is not actually required under these regulations.’
Anthony Mayall, managing director of NIFES, warns, ‘Companies that wait until just before the deadline risk overpaying for their ESOS audit or failing to comply on time.
‘With 7260 scheme participants and only approximately 500 qualified, good-quality professionals (lead auditors must be accredited by a recognised body) able to carry out ESOS audits, there’s likely to be high demand close to the deadline.
