UK business is missing £2.8bn a year through energy cost savings that could be achieved through the Energy Saving Opportunity Scheme (ESOS).
That’s the view of Ed Davey, Energy and Climate Change minister, along with many other key figures from businesses, charities and universities.
According to the Department of Energy and Climate Change (DECC), big businesses are paying for five power stations worth of electricity each year that they do not need.
ESOS, the government-run scheme, helps large organisations cut electricity use through a detailed energy efficiency audit, cutting the costs to your business and helping the environment.
From our experience. companies that act decisively to audit, plan and complete a smart energy-saving strategy can earn back their investment in just two years. This is a view echoed by the Department of Energy and Climate Change (DECC). With finance options also available to help with the costs of your changes, the switch to a more energy-efficient business is simpler than ever.
By just implementing a few simple changes, you can potentially save millions in the long-run. Maximise your cost-cutting by focusing first on the most effective changes, such as switching to LED lighting and Smart Bulbs to cut electricity use by up to 85%, and adding heating and ventilation controls to cut around 50%.
Speaking at the Institute of Directors event, Ed Davey reported that Britain’s big firms were spending around £2.8 billion extra each year on inefficient energy technologies – the equivalent output of nearly five power stations.
He added: “Now is the time to seize the opportunity with ESOS, and organisations up and down the country are already gearing up to make changes to save energy, save money and save the environment. If you act and invest, you will save – and that’s the bottom line.
“While take-up of recommendations under ESOS is voluntary, this process will become a burden if the savings identified aren’t realised,” he said. “Having paid for an audit, we believe you will want to use it. Think of it as a menu of things you can do to save money. Of course, if you see ESOS as a compliance burden it will become one.”
Under the ESOS regulations, all large organisations that employ at least 250 people, or have an annual turnover of more than £40 million with a balance sheet above £34 million, must carry out energy audits every four years.
Initial audits must be completed on time each year, and while the regulations are being advised as “light touch”, companies could be fined up to £10,000 for non-compliance, which is much higher than the cost of a typical audit.
ESOS is the government’s response to Article Eight of the EU’s Energy Efficiency Directive. It involves measures to encourage private businesses to improve energy efficiency.
The scheme runs alongside the Carbon Reduction Commitment (CRC), which currently requires the UK’s largest 1,000 companies to report on emissions and cover a carbon levy.
Attendees explored how to encourage take up of energy efficiency opportunities to make the most of the scheme. They learned that even reducing their energy consumption by 1% could save over £250 million on their energy bills annually.
To us, energy-saving is a no brainer for every business and organisation. We’ve seen how being energy efficient has a long-lasting, positive financial impact. By using our product specifications to tailor the solutions we provide, we ensure your energy costs are cut year after year.