ESOS: Just six months left to have your energy audit

The EU, as part of its initiative to save 20% of primary energy consumption by 2020, has created the Energy Efficiency Directive. Part of this ruling states that all EU member states must introduce a programme of regular energy audits for large organisations.

The UK government has responded by launching its Energy Savings Opportunity Scheme (ESOS), which commands large businesses to carry out compulsory energy audits. Legislation passed in June 2014 states that it is now a legal requirement for these enterprises to have their energy management systems audited in order to identify potential energy-efficiency improvements.

ESOS audits must be completed by 5 December 2015, meaning there are exactly six months left to have yours carried out, should your organisation qualify.

Who qualifies for an ESOS energy audit?

Organisations qualifying for an ESOS audit are those defined as a ‘large undertaking’. This means a business or body employing at least 250 people or one with a yearly turnover of over €50 million (approximately £35 million) plus an annual balance sheet of at least €43 million (approximately £32 million).

Please note that if your organisation qualifies for ESOS but is covered by ISO 50001 then you won’t need to be audited. If this is the case, you must inform the Environment Agency.

How does an ESOS energy audit work?

To be fully compliant, organisations must:

•  Analyse their energy consumption and energy efficiency by  breaking down the ways in which energy is used within the business.
•  Identify opportunities to save energy where practicable and  cost effective. 
•  Cost effectiveness is measured by comparing the value of the proposed  energy usage reduction  with the cost of implementing the action.
•  Provide 12 months’ verifiable data covering a continuous period  which began no more than two years before the start of the audit.

What happens if my company doesn’t comply?

If your business fails to meet ESOS requirements by December 2015, the relevant regulator may impose a penalty of up to:

•      £5,000 for failing to maintain adequate records
•      £50,000 for failure to undertake an ESOS assessment or making a false  or misleading statement
•      An additional £500 for every subsequent day of non-compliance.

Meeting the upcoming ESOS regulations should be a priority for energy managers as the deadline draws ever closer. Now’s the time to determine whether your business qualifies, and if it does, to begin planning for an ESOS audit.

To discover how Gibbons may be able to enhance the energy efficiency of your electric motor-driven applications with ABB drives, call Alan Roberts on 07966 468430 or email alan@gibbons.co.uk.