Energy Savings Opportunity Scheme deadline extended but pressure still on

Posted on

October 12, 2015

Posted in

ESOS and regulations

The Energy Savings Opportunity Scheme (ESOS) deadline has just been extended by a month but the pressure is on businesses to comply.

Graphic of compliance map ESOS
ESOS urgency: no time to lose despite deadline change

The ESOS scheme applies to around 10,000 larger companies in the UK and requires them to carry out comprehensive energy audits or face heavy fines.

The Environment Agency, which administers ESOS, has announced a small deadline reprieve – very welcome news for the vast majority of business affected. However, this gives no wriggle room or mistaken complacency.

At the last count, it appears that only 375 companies have complied, which works out at around 3% of the total required by law to do so. Not too surprising, then, that the Environment Agency has extended the deadline by a month to January 29.

ESOS compliance

But our strong advice is to move ahead right now and work with a trusted expert to ensure you meet the ESOS requirements in full and avoid those huge fines.

The biggest issue facing affected companies is that there is a shortage of approved ESOS Lead Assessors, required by the scheme. Clearly, it is imperative to act now and avoid getting caught out. We guide our clients through the ESOS maze and make sure that compliance is achieved.

It is a very complex process and not achieved in a few simple steps. Your company is affected if it employs at least 250 people or has annual turnover exceeding €50 million and a balance sheet of €43 million or more.

Failure to comply could trigger an immediate fine of £50,000 with a further penalty of £800 a day capped at 80 days.

Call us and speak to one of our ESOS team on 0845 123 5464 or email .

Read more about our ESOS services here.

Deadline extension

The agency is bound by the EU Energy Efficiency Directive to push forward with the ESOS compliance process and so has underlined that it expects companies to be moving ahead right now. It made the move as it has the limited power to waive or modify enforcement action.

It will accept submissions for deadline extension up to December 5th but only if companies give an account of why they have had delays in the process. If accepted, this will give businesses until January 29th to give notice of compliance and state when they will complete this.

Then companies will have a further three months to end of April to achieve full compliance. And if they are working on ISO50001 implementation for ESOS compliance, they will have until June 30 to comply.

The government believes that ESOS will bring around £1.9 billion in benefits to business over the next 15 years. While you will have to engage and cover costs of Lead Assessors for the energy audit there is no obligation to implement any of the efficiency measures identified.

But we have seen the benefits of energy audits with our customers saving millions of pounds and making huge reductions in their carbon emissions. The ESOS scheme helps to focus companies on this, bringing benefits that extend over many years.



Sign up for exclusive discounts

and the latest product news