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Servest urges qualifying businesses to submit ESOS notifications of compliance

26 November 2015

Under EU legislation, qualifying organisations must demonstrate that they have made or intend to make a compliant ESOS assessment by 5 December 2015

The deadline for qualifying businesses to administer and submit an Energy Savings Opportunity Scheme (ESOS) assessment, or confirm their intent to comply, isfast approaching.

The Environment Agency (EA), which administers ESOS on behalf of the Government, has estimated that circa 10,000 enterprises fall under the legislation. Despite this, reports have revealed that only 850 surveys havebeen submitted to the EA*.
 
Servest’s ESOS experts can advise organisations as to whether their organisation falls in scope of ESOS legislation, and can provide the necessary guidance.
 
David Llewellyn, CEO of Energy at Servest said: “Our research has indicated that there are still a significant number of companies who are not aware, or who do not think, the legislation applies to them.
 
“Organisations that turnover significantly less than the benchmark of £39 million may believe they are exempt from ESOS compliancy. This is not the case as employment numbers must be taken into consideration regardless of turnover.
 
“This means that companies which employ over 250 staff will need to submit their compliance report or intention to comply notification to the EA by the 5th December. For example, hotels turning over millions less than the threshold will still qualify if they employ over 250 part-time bar staff and zero-hour contractors for events.
 
“We’re keen to reach out to these organisations in the weeks leading up to the deadline, to ensure business leaders across the country know what they need to do, and how our team of ESOS experts can help them meet their obligations.”
 
As per the new legislation, qualifying companies must carry out ESOS assessments every four years, starting from the initial compliance date of the 5th December 2015. For businesses that run out of time to submit prior to this date, the Environment Agency has indicated, providing companies can confirm a Lead Assessor has been or will soon be appointed, enforcement action may be deferred until the end of January, and later for those that choose the ISO50001 route for compliance.  Beyond this date, an enforcement notice approach will be used backed up by civil penalties. 
 
The Department of Energy Climate Change has conducted research that shows that 78% of businesses are aware of their ESOS requirements and have taken steps to achieve compliance. Despite these reasonable high levels of awareness, Servest believe that there are still a significant number of businesses that have not yet appointed a Lead Assessor and have not started collecting site-based information required for reporting.
 
With all the immediate focus on achieving compliance, it is easy to forget that this scheme is about driving energy savings. The Energy Savings Opportunity Scheme is essentially an opportunity for British businesses to save money. The Government has identified that the Net Present Value of the benefits will be in the region of £1.6 billion, so the gains reaped from becoming ESOS compliant far outweigh the initial cost of the assessment.
 
In line with the rapidly approaching deadline, Servest is urging qualifying companies who have yet to appoint a Lead Assessor to do so with immediate effect. Servest has in place a Lead Assessor that can help organisations achieve their compliance requirements.


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