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Guidance on new mandatory 'energy audits'

The Energy Saving Opportunity Scheme (ESOS) is the UK implementation of new EU legislation requiring a mandatory programme of energy audits for ‘large enterprises’.

MHA MacIntyre Hudson has offered the following guidance on complying with the new laws.

Large is any organisation which has more than 250 employees or a turnover in excess of €50 million (£39m) and a balance sheet in excess of €43m (£34m).

The audit will:

• Measure of the total energy consumption for buildings, industrial processes and transport.
• Identify areas of significant energy consumption, accounting for at least 90% of the total energy consumption
• Identify cost-effective energy efficiency recommendations for areas of significant energy consumption;
• Report compliance to the Environment Agency

How should dealers feel about it?

Although this could be considered an administration burden, it is also an opportunity to examine the energy use and efficiency of sites and identify cost-effective energy saving measures. For example by installing new LED lighting could reduce both power consumption and CO2 levels with a quick payback.

Not only can it reduce overhead costs, it can give the business a better reputation, which can be developed with customers.

Why is it important for dealers?

Many dealers are likely to fall within the requirements of complying with this regulation. Those who don’t may still wish to manage their energy as they may consider that it will give them a competitive advantage.

What effect is the legislation hoping to have on dealer businesses?

ESOS energy audits are designed to increase identifying achievable areas of energy efficiency improvements.

What are the consequences of not complying?

Failure to undertake an ESOS assessment, include a penalty of up to £50,000 and/or an additional £500 per day penalty for each day starting on the day after the compliance date that the organisation remains non-compliant (subject to a maximum of 80 days); and/or publication of details of non-compliance.

What support are dealers likely to need in complying?

You will need to appoint a 'lead energy assessor' who must be registered through an approved professional body.

To get the most out of this regulation rather than simply complying, you need to carefully consider who you select, sector specialists will be able to identify the best energy-saving solutions for dealers.


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