Wednesday, 13 April 2016

Organisations that have not yet notified the Environment Agency of ESOS (Energy Savings Opportunity Scheme) compliance have just over two weeks to avoid enforcement action as the ultimate deadline looms.

ESOS is a mandatory scheme for British companies employing 250 or more staff and/or with an annual turnover above £39 million or a balance sheet above £34 million. Eligible firms must be audited for energy efficiency as part of the UK’s efforts to comply with the EU Energy Efficiency Directive.

Originally, the Agency set a deadline of 5th December 2015 for qualifying businesses to report compliance, but by November of that year it was clear that the majority of firms would not have audits carried out in time. This was despite the maximum penalty for non-compliance being up to £50,000 and as much as £500 for each working day the organisation had not notified the Agency of compliance – for a maximum of 80 working days.

The decision was taken to extend the deadline to January 29th 2016, which prompted a rash of compliance notifications, with the Agency announcing in early February that 70 per cent of eligible businesses had made their submission on time.

However, there may be some respite for those firms that did not submit their notification in time, as the Agency’s ‘Enforcement and Sanctions’ document states that a grace period of three months will be granted to allow non-compliant businesses to remedy the failure prior to the issuing of any fines.
This means that companies face a final deadline of 29th April, by which point they must have provided evidence of compliance to the Agency to avoid a significant financial penalty.

Gibbons is vastly experienced in helping firms within the commercial and industrial sectors to meet their energy-saving targets. Not only do we supply energy-efficient electric motors, Lowara pumps and Bonfiglioli gearboxes, we’re also an Authorized Value Provider (AVP) for ABB drives. In addition, we perform energy audits to help our clients identify areas of their application that have the potential for greater efficiency.

To discuss the energy efficiency of your business with one of our experts, call Gibbons on 01621 868138 or email


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