ESOS Phase 2 – What do I need to know?

16 March 2018  |  Energy  |  Green Element  |  Leave a comment

ESOS, or the Energy Savings Opportunity Scheme is a mandatory energy assessment for UK businesses that meet the relevant criteria. The window for Phase 2 is now open, and it is time for organisations to start planning. Businesses who have the ISO 50001 certification across all of their services are automatically compliant with ESOS Phase 2.

What are the key dates for Phase 2?

• The Key deadline for the end of ESOS Phase 2 is 5^th December 2019.
• Compliance Audits can be conducted anytime from now until the deadline.
• Reference Audits – i.e. data to be submitted to the EA – must be undertaken within a consecutive period of 12 months any time from the 1^st January 2018.
  • This window must include the qualification date of 31^st December 2018

Organisations should start planning ahead and consider commencing the process sooner rather than later, so as to avoid late completion and potential fines – this was a widespread issue that occurred during Phase 1. Many organisations had also been found to be disengaged from the scheme even though they matched the criteria, resulting in enforcement action from the EA. All of this can be avoided going forward, with earlier planning.

Companies can also reap financial benefits if this is undertaken earlier, as savings opportunities can be implemented earlier.

Not sure if you qualify for ESOS Phase 2?

If any of your organisation’s UK undertakings qualifies as a ‘large undertaking’ then all of your UK undertakings qualify for ESOS Phase II. A large undertaking is:

• Any UK company that either:
  1. Employs 250 or more people.
  2. It has an annual turnover in excess of 50 million euro (£44,845,000), and an annual balance sheet total in excess of 43 million euro (£38,566,700).
• An overseas company with a UK registered establishment which has 250 or more UK employees (paying income tax in the UK).

If your company’s accounts or staff numbers are close to the thresholds above, we can help you work out whether you qualify for ESOS Phase II using the two consecutive years stipulation included in the updated guidance.

If your company has an unusual or complicated legal structure, we can also help you work out at what level you need to notify the Environment Agency of your ESOS compliance.

If you’re not sure which energy supplies should be included in your ESOS Phase 2 assessment and report, we are expert at interpreting the ESOS Phase II guidance and can help you scope out your ESOS Assessment.

Give our ESOS Lead Assessor or any of our energy management and auditing team a call.

How to comply with ESOS Phase 2?

There are various compliance routes to go down, depending on the specifics of a business. These should cover at least 90% of energy consumption (i.e. all the significant energy consumption of a business). These routes include:

• ISO 50001 – if this covers all significant energy use, then a lead assessor audit is not required and this is ESOS Phase 2 compliant.
• DECs (Display Energy Certificates) – this is relevant for public buildings over 250m². It requires a recommendation report alongside this in order to comply, so long as all significant energy use is covered. A lead assessor is still required to perform an assessment.
• GDAs (Green Deal Assessments) – covers building-specific energy use; if all significant energy activity is incorporated, then no other routes are required. A lead assessor is still to perform an assessment.
• ESOS-compliant energy audits – this can use previous energy audits as part of the assessment, so long as it is all within the compliance period. This must be reviewed by a lead assessor.

(Note: whichever route is chosen, this must have been issued during the compliance window i.e. between 6^th Dec 2015 and 5^th December 2019, and must be valid at the final deadline date of 5^th December 2019).

For ESOS Phase 2 -compliant energy audits, the key steps involved are to:

• Ensure all energy activity has been measured – including buildings, transport, and other relevant activities.
• Complete a 12-month energy assessment, and include energy-saving recommendations
• Carry out an external audit by an ESOS auditor
• Compile the required evidence pack which details outcomes of the assessment and how the chosen certification or assessment route is tackling areas of significant energy consumption

How we can help?

Green Element can provide organisations with bespoke and tailored support and guidance surrounding compliance with ESOS Phase 2. Whatever stage your organisation is at, whether this is starting from scratch, or reviewing current processes, we are able to provide support, whilst tailoring this to your organisation’s specific needs.

• Determine whether you qualify for ESOS, and if so, conduct a gap analysis to establish what is involved for compliance
• Assess which approach is best for your organisation
• Perform the energy assessments from activities across your business for the period
• Pinpoint any energy saving opportunities and make recommendations
• Conduct the formal audits via a Lead assessor
• Compile the report and evidence pack for the EA.

Find out more here.