To comply with the European Directive, the government is introducing Energy Savings Opportunity Scheme (ESOS) which is going to be introduced in 2015. This is the next tool in the government’s armoury to get businesses to take their energy use seriously. The scheme is currently being developed by the Department of Energy and Climate Change to meet the EU Efficiency Directive.
Compliance with the scheme will be a legal requirement, however, it will only apply to businesses with more than 250 staff, sales of over £50 million a year and an annual balance sheet in excess of £43 million.
ESOS demands that an audit is completed which must:
- Review the total energy use and relative energy intensity for buildings, industrial processes and transport
- Identify the most significant energy consumption (up to 90%)
- Identify cost-effective energy efficiency recommendations for taking action to reduce energy consumption
- Report to the Environment Agency
The main objective is to help businesses see where savings can be made. The audit will cover:
- The type of lighting used
- How heating or cooling systems are managed
- Level of insulation in the premises, and
- How equipment and machinery is currently used
Assessments have to be carried out by an approved ESOS assessor and be suitably qualified and hold a certain level of professional expertise.
If ESOS applies to your business you will have until the 5 December 2015 to complete your audit and report the findings to the EA. This process has to be completed every 4 years after the initial audit.
Today is World Environment Day! What better time to look at how your business can support the environment and make sure you adhere to government guidelines on environmental issues? Contact us if you would like any help with how this can apply to you.
Happy World Environment Day, from everyone at Hawksafe!
The Carbon Reduction Commitment Energy Efficiency Scheme (CRC) is a system that imposes charges on a business based on how much energy it uses. On April 2014 the scheme entered into its second phase with another lot of changes to its rules. The latest one is emission conversion factors which measure the amount of pollution your business produces and the cost of allowances that it will have to buy for every tonne of carbon it emits.
In the first phase the rates stayed constant for the whole period but from Phase 2 they will change year on year.
Unless the use of electricity is reduced, compliance with CRC is probably going to become more expensive.
In Phase 1 the rate was £12 per tonne of CO2 whilst in Phase 2 you will have a choice to buy your allowances in a forecast sale at a low rate at the beginning of the compliance year or ‘buy to comply’ sale in arrears after the compliance year has ended. For example if you used 1,000,000 kWh per year it would have cost £6,492 in allowance costs during Phase 1, in Phase 2 these costs will rise to £7,872.
New rates if you buy allowances in the forecast sale will be £15.60 per tonne of CO2 whereas to ‘buy to comply’ sale it will be slightly higher at £16.40 per tonne of CO2.
This information is taken from our monthly Environmental Advice newsletter, sent to all Hawksafe clients, via email. This month’s newsletter also covers current issues relating to these topics:
- Managing Ill Health Problems
- Cycle Facilities
- Flooding – Repair & Renewal Grant
- Water Protection