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Why all businesses should apply the principles of ESOS!

Date August 2nd 2017 by in Categories Compliance, Energy Efficiency and Carbon Management, Energy Management

The second phase of the Energy Savings Opportunity Scheme (ESOS) is now live with an assessment deadline of 5th December 2019. For those businesses that meet the requirements, it’s time to begin the compliance process, start work on your energy audits and identify savings opportunities. Our ESOS information sheet provides guidance for qualifying businesses.

ESOS applies to larger UK businesses with an annual turnover in excess of 50 million EURO (£38,937,777) and employing over 250 people. However, in my experience, there are many smaller businesses that would benefit from meeting even just some of the requirements. In an age where businesses and consumers are more environmentally focused than ever and corporate social responsibility is becoming a priority at board level, all businesses could profit from following the “ethics” of ESOS. 

The main principles of ESOS are:

  • To encourage businesses to review carbon mitigation and look at renewable investment
  • To provide the opportunity to realise energy cost savings
  • To push business’ to look at ways to mitigate energy usage through efficiency technologies
  • To encourage businesses to make changes to their working practices, specifically around cost-effective energy saving measures

These principles help to bolster a general shift towards energy efficiency and will also stand businesses in good stead for the future. Current instability around internal and foreign politics mean that legislative changes could happen at any time and we may see the parameters surrounding ESOS widening to cover smaller businesses. In fact, regardless of our status in the EU or our governing party, the focus of the UK energy strategy going forward is a low carbon future. This means that energy efficiency and carbon reduction will be regulatory buzz words for a long time to come, therefore, by starting this journey early you will save yourself hassle and stress in the future. Other businesses who are not so on the ball might struggle to meet legislative requirements.

Every business and industry sector is different and it’s impossible to find an energy efficient and carbon reduction solution that fits all business requirements, however, there is a basic formula that every business should be aware of.

Our recommendations are as follows:

  • Monitor energy consumption. Actual data is far more useful than estimated data and will be hugely beneficial to your business in the long run. We can furnish you with the right tools, helping you to measure, analyse and report on your total carbon-energy consumption and provide you with quality data. By analysing minimum and maximum usage levels and identifying patterns in fluctuation of energy use we can help you and your management team to identify energy saving opportunities and help with long-term decision making.
  • Carry out a site survey. By carrying out a site survey we can collect a large amount of data and observations that will help you to decide on the best efficiency measures for your business. Whether you choose to reduce your business' carbon output, to harness another form of energy generation or to map out the carbon footprint of your business, having an initial site survey will provide you with the information that you need.
  • Choose a solution with ROI in mind. Whichever energy efficiency strategy you employ within your business, it’s vital that you adopt one that is sustainable and affordable in the long term. Before you decide on your chosen efficiency solution it is advisable to look at the projected return on investment. With so many renewable or sustainable energy options now available to businesses, it would be foolhardy to implement new technologies without a thorough analysis of the benefits. Our experts can help you to decide on the right technology for your industry sector and assess whether or not it is viable for your business.
  • Make sure that you know what carbon is being used for. There are no fuel type exemptions in ESOS, therefore, you will need to measure usage for all forms of energy products, including combustible fuels, heat, renewable energy and electricity. We can carry out a simple report which will provide you with the levels of carbon used across your business.
  • Engage with your employees. I have said it before and I'll say it again, educating your staff on energy efficiency is key to introducing low cost and low carbon energy solutions into your business. The team at BCR Associates can assist with training on this should your business require it.
  • Build an energy strategy. Putting together an effective energy strategy will help with future planning and provide a framework for the company to work towards. Rome wasn't built in a day, but by mapping out a five-year energy strategy you can prioritise those areas that require immediate attention and put the required thought and investment into those that need more planning time. This will provide you with a long term view of what your company could achieve with in the life cycle of the site, as your business develops and energy prices hike.

To summarise, in the current climate where there is a push toward reducing emissions and improving your carbon footprint, a sharp eye on consumption, energy monitoring and data combined with a long term energy strategy can only be a good thing for your business.

To speak to me on any of the above issues, please contact me on 03300 243 130 or michael.lock@bcrassociates.co.uk.


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