Countdown to ESOS Phase 2 is underway – time to start measuring energy

ESOS Phase 2, Energy Savings Opportunity Scheme, ESOS

Since January 2018, firms which have to comply with the Energy Savings Opportunity Scheme (ESOS) have been able to measure their energy use for ESOS Phase 2. Compliance has to be complete by 5th December 2019.

Planning ahead for compliance is crucial. The Carbon Trust reports that from the hundreds of compliance audits conducted for Phase 1, just 16% of participants were fully compliant. And 75% of participants had to undertake ‘remedial actions’ in order to achieve compliance. Of most concern was the 5% found to be noncompliant, and liable to substantial financial penalties.

In England, the Environment Agency identified 500 organisations who did not engage with the scheme, even though they should have. The Agency has sent over 300 enforcement notifications, and civil penalty proceedings have been commenced against a number of non-compliant organisations.

Under ESOS, eligible organisations must measure their total energy consumption for a 12-month period that includes the qualification date of 31st December 2018; conduct audits to identify cost-effective energy saving opportunities; and report compliance to the scheme administrator (the Environment Agency in England;SEPA in Scotland and NRW in Wales).

Some organisations can comply automatically. The main way to do this is to provide evidence that they have achieved certification under ISO 50001 – the international standard for energy management.

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