Promoting good energy management practice, the Energy Savings Opportunity Scheme (ESOS) helps UK organisations to save a substantial amount of money through reduced energy bills due to improved energy efficiency and management. By the end of ESOS Phase 2 the scheme had already led to an estimated annual energy efficiency saving in the region of 3.0TWh. The changes made to Phase 3 of the scheme are estimated to add a further £1.12billion in energy bill savings on top of the £1.6billion worth of savings from the existing scheme over the next 14 years.

This highlights two important things about the ESOS scheme. Firstly, organisations can save a significant amount of energy and money. Secondly, the Phase 3 story highlights that the ESOS requirements are always open to change. Nothing is set in stone, and with each legislative consultation – and now a change in Government – the process that organisations need to follow has the potential to become more demanding and complex.

 Lessons from Phase 3 – take a proactive approach

During the four-year ESOS cycle organisations must conduct energy audits and compile extensive reports on them. Organisations must also then provide an energy saving action plan for the four-year compliance period and report on the progress of their plans.

Historically, the four-year period has given organisations within the scope of ESOS a natural opportunity to delay, which is perfectly understandable given the many competing pressures that such organisations face. The tendency to delay, however, can lead to negative consequences that are clear when you compare an organisation that audited earlier against one that did so much later.

Organisations that audited themselves earlier have benefitted from the energy savings they made over a longer period. They have had more years to accumulate the savings made from reducing their energy costs. For organisations that delay, achieving the maximum potential savings will be limited. As the Government’s data highlights, the total savings from ESOS are in the billions. Organisations that delay are missing out on their share of those substantial savings.

This presents a clear lesson for all organisations; be proactive with the “savings opportunities” sooner rather than later to reap the rewards for longer.

Because of the last-minute changes to Phase 3 requirements organisations that started late experienced more difficulties than those that began their compliance audits early. Organisations that audited early were able to make minor adjustments with few complications, while those starting late had to begin from scratch.

ESOS Lead Assessors are a requirement for all ESOS compliance submissions, so organisation’s that were further behind faced the issue of Lead Assessor and consultancy support. Because a large number of organisations needed support last minute, the demand for Lead Assessors outstripped the sector’s capacity. This can lead to delays and fines that can be avoided.

Working with an energy management consultancy can help organisations deal with any changes to the ESOS phase 4 requirements over the next three years. Tapping into expert knowledge can help mitigate these risks and ensure that organisations take the changing and complex UK regulatory landscape in their stride.    

Let ESOS help to build an integrated programme of energy management

The challenges of ESOS can be transformed into an opportunity for substantial energy savings and operational benefits throughout an organisation.

The final key take away is that for the greatest benefits, organisations must not shelve ESOS as a job to be done every four years. Rather, they must treat it as a regular, ongoing process, and as one part of an integrated energy management programme. Now that ESOS action plans require organisations to collect and report more data more regularly, the chance to embrace it as a core energy management schedule will make ESOS action plans much easier with the right support. 

TEAM Energy helps guide organisations through the complexities of ESOS, ensuring they meet the legal requirements and can maximise their energy savings and sustainability benefits. Its consultative approach helps organisations embed their ESOS compliance within a long-term strategy for energy management and energy efficiency, helping to boost their green credentials, and bolster the business case for any future energy savings improvements.