Large companies with more than 250 people or turnover over £42.5 million will need to carry out an ESOS audit of their energy use, identify energy saving opportunities and submit a report to the Environment Agency.
However, when this audit has been carried out and energy savings opportunities have been identified, this is where the company’s obligations end. There are no requirements to implement those energy saving measures set out under the terms of the scheme.
This means that businesses do not have to implement any changes to their assets or operations as a result of the findings from an ESOS audit. Therefore many businesses may miss out on significant cost savings because business owners are not obliged under ESOS to implement the savings projects identified or make investments to implement them.
This would however be foolish, as the savings identified under ESOS could prove to be more substantial in terms of the actual money they will save in the medium-to-long term should they be implemented and reviewed on a regular basis.
ESOS does not yet go this far with its implementation requirements, and perhaps won’t until the over 9,000 businesses affected in the UK are well versed in the process of conducting and submitting their ESOS audits. But this does not mean businesses can also sit back and relax and wait for the implementation and management mandates to be added to ESOS.
Instead, businesses must engage with their supply partners and start taking decisive action now to understand energy used and more importantly where it is used the most, the least efficiently. The opportunities identified through ESOS, could if implemented, prove financially attractive to businesses who act on them immediately with a continuous improvement framework to support it in the long term.
Energy appraisals will remain at the heart of any requirements businesses in the UK face with regards to energy use and energy efficiency, as they are the only way to know accurately how much energy is used and where wastage and inefficiencies are happening. Selecting supplier like ABB that has a wide range of audit capabilities that look at motors, fans, pumps, air handling units, HVAC systems and compressors will make the difference in achieving real energy and cost savings for your business.
To find out more about ESOS, discuss your energy usage and how best to audit it, contact the ABB Energy & Productivity team.