ESOS: 11 days to go – how to avoid penalties for non-compliance

The official ESOS deadline was extended last year to the 29 January 2016 to give companies enough time to get their shop back in order. The turnover and staff number qualification makes it very easy to see who needs to comply in simple scenarios - however, we have found many group companies do not fully understand their obligations or the implications that a sister company may make to their requirements.

Missing the need to comply

Our auditing experts have found many companies are taking a simplistic view of the legislation and are missing the need to comply. They could therefore be liable to enforcement action taken by the Environment Agency. So take note: if you are group, request a no obligation due-diligence health check as soon as possible.

We have developed a quick ESOS questionnaire that enables us to quickly provide you with details about an ESOS solution for your business or even just clarify your scoping queries.

Extra time to comply

For the companies who have not yet completed, or in some instances even started their ESOS review, the extended deadline is a lifeline. It allows businesses to quickly catch up and avoid the extra legal battles or administrative burden of rushing through an inappropriate auditing and assessment plan.

How to avoid non-compliance with ESOS

The EA released revised guidance at the end of 2015 highlighting how to avoid non-compliance:

• If a company notifies the EA by 29 January 2016, it is not expected that enforcement action will be taken.
• Companies still trying to push through ISO 50001 as a form of compliance now have until 30 June to gain certification.
• Organisations with 40,000kWh/yr or below (classed as domestic usage), have relaxed the auditing requirements. They can offer self-declaration with their own documented energy saving opportunities and usage, as part of their evidence pack.
• Organisations that qualify but have zero energy consumption will only need to declare this to the EA, and other sections of the ESOS regulations will not be enforced.

It must be noted that enforcement notices from the EA to organisations believed to be out of compliance will legally force them to provide information about their situation and will be used to make companies declare their status. The EA suggests a three-month window is likely to be given to rectify the non-compliance situation, but still allows for civil penalties in serious instances however.

ESOS Compliance round up

Here we summarise the most important and latest information about ESOS compliance

1. The reporting period is inclusive of 31 Dec 2014, ending before 31 Dec 2015
2. The energy audit includes transport, offices, factories and warehouses (covering 90% usage)
3. Reports and audits must be conducted by qualified Lead Assessors
4. Submission and reports are presented to, and must be signed by, a Director or Company secretary
5. Final extended deadline for submission is 29 January 2016
6. The Penalty risk is £5,000 to £50,000 plus £500 per day thereafter

Make sure you reap the rewards

Although there is currently a big rush to be compliant, organisations must not lose sight of the fact that ESOS should provide the opportunity for real improvements and savings to your business, both environmentally and financially.

Getting the ball rolling as soon as possible means you can relax in the knowledge that you will not be hit by significant fines and you can take advantage of all the opportunities that ESOS can bring.

Contact our team now to find out how we can help!

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