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ESOS: Environment Agency begins to issue fines for non-compliance

Posted by Inprova Energy on 3 July, 2017

With the first phase of the Energy Savings Opportunity Scheme (ESOS) complete and the second phase in full swing, the Environment Agency has revealed that hundreds of organisations could be issued fines for non-compliance with the energy auditing regulations.

The Environment Agency has issued 300 enforcements notices for non-compliant organisations already and states that ‘failure to comply with the conditions of a notice can lead to substantial financial penalties”. In fact penalties can reach as high as £50,000.

The audit conducted by the Environment Agency showcased that hundreds of organisations claimed that they did not qualify for ESOS when in fact they did. Many more were also classed as non-compliant and subsequently issued with a number of actions to become compliant.

Richard Smith, Director of Business Strategy at Inprova Energy commented, “It’s clear that many businesses are still confused when it comes to the qualification criteria for ESOS and acting on the requirements of the legislation.

As a consultancy supporting organisations with compliance, we urge businesses to ensure that they are aware of the qualification criteria and take action now to remove the risk of penalties and begin identifying opportunities to reduce energy costs. Remember, even if you didn’t qualify for Phase One, your organisation could qualify for Phase Two if your organisation has grown e.g. through increased employee numbers and turnover.”

ESOS is a mandatory energy assessment scheme for UK organisations that meet the qualification criteria. ESOS operates four-yearly compliance phases with the next phase set to complete 5th December 2019.

The Environment Agency is urging businesses to begin carrying out energy audits as soon as possible stating, “If you know that you qualify for Phase Two, there is no reason why you shouldn’t start doing your energy assessments now. You will not be able to carry out the assessment of your total energy consumption (TEC) as this has to include the qualification date of 31st December 2018, however where you know that an energy supply will be included in your significant energy consumption (SEC) you can do the audit work on this supply.”

Inprova Energy’s in-house team of Chartered Energy Managers are all approved ESOS Lead Assessors and have been supporting over 150 UK organisations in managing their compliance requirements under phase one of the scheme. Our team of experts can help you achieve compliance for Phase Two of the scheme now.

Download our eGuide to find out how we could help you become ESOS compliant or contact us to find out more.