Delivering immediate business improvements using Lean and Lean Six Sigma techniques.
Sustaining improvements by developing your team's skills.

For your free ESOS Lead Assessor consultation


Telephone us at our Belper, Derbyshire office on:
07940 397208

Resource Efficiency Derbyshire
Ian Jackson
Delivering sustainable improvement.
ian.jackson@developyour.co.uk


Energy Institute
RPEC number
0058872

ENERGY SAVINGS OPPORTUNITY SCHEME (ESOS)




  • COMPLIANCE PERIODS
  • COST OF COMPLIANCE
  • STEPS TO ESOS COMPLIANCE

    • DEFINE - Mapping the organisation and energy / fuel used.
    • MEASURE - Collate 12 months energy / fuel consumption, including the ESOS qualification date (for Period 1 - 31/12/14, for Period 2 - 31/12/18). Identify the Areas of Significant Usage.
    • ANALYSE - Carry out data analysis and audits identifying energy /fuel consumption.
    • IMPROVE - Identify improvement opportunities and carry out full life-cycle assessment, where practicable.
    • CONTROL - Produce the Assessment report, with sign-off by Lead Assessor and responsible Director of the UK organisation. Register completion with the Environment Agency.

ESOS Compliance

Making the most of ESOS

COMPLIANCE PERIODS

Period 1 - 6/12/2011 to 5/12/2015

Compliance Period 1 should now be complete.
The Environment Agency are still reporting qualifying organisations that have not registered with them. Significant fines (up to £90k) have been threatened for non-compliant organisations.

If in doubt ask, don't wait for the letter from the EA.

Period 2 - 6/12/2015 to 5/12/2019

Any energy audits covering Buildings, Processes and Transport during the 4 year compliance period can, and should, be included in the Period 2 ESOS Assessment Report.

Gaining accreditation to ISO 50001 also meets compliance requirements, for the specific locations accredited as long as the scope of the system covers all Building, Process and Transport energy and fuel usage.

Give yourself time to clarify your organisation's structure, collate the fuel / energy usage data, and carry out appropriate audits focussed on the major improvement opportunity areas. Spread the workload internally.

In 2015 too many organisations left their compliance work to the last 6 months, stretching limited resources and impacting on the depth of analysis, quality of opportunity assessment and cost of audits.

As independent consultants we work with specialists in specific areas, such as steam usage and lighting. As resources get tight they get more expensive, as we saw coming up to December 2015 deadline. Audits carried out now can be included in your 2019 ESOS report!

Ensure that your statutory energy assessments (such as TM44 energy efficiency inspection) are comprehensive and suitable for your ESOS Lead Assessor to incorporate into the ESOS assessment report. DECs can also be included in assessment reports, which is useful for organisations that meet the qualifying criteria, but have little or no process or transport fuel usage.

COST OF COMPLIANCE

There is no fixed price for ESOS compliance. Prices will be quoted following an in-depth, free initial assessment that takes in to account:

  • Your organisation's energy management maturity.
  • Access to information, including energy usage data and improvement project studies underway, or completed, during the 4 year compliance period.
  • The complexity of the organisation's energy / fuel usage.
  • The location of the sites selected to be audited, as representative of the significant areas of energy usage.

Your organisation's energy management maturity influences the length of time the ESOS process takes. During Period 1, our assessments took between 3 and 6 months to complete, dependant on the availability of data, access to sites and the resources that organisations committed to the process.

ESOS guidance suggests cost effective energy saving opportunities, delivering at least 5% savings, should be identified within an ESOS assessment. This more than covers the costs of the ESOS assessment, as long as the improvement measures are implemented.

The cost of an ESOS assessment report does not depend on size of organisation or the amount of energy used.

In Period 1 our largest organisation was one of our lower cost assessments, as they already had the energy management infrastructure in place to collect the data, do the analysis to understand their areas of significant usage, and to identify and implement improvement projects across multiple sites, including sharing best practises.

You can significantly reduce the costs of ESOS compliance through improved internal energy / fuel data management, and energy efficiency projects.

Additional costs should not be incurred if all information is made available at the initial scoping.

Note: 15% of our Period 1 clients estimated Transport Fuel usage would be de minimis (<10% total energy usage) as they had no transport fuel data available. Following full data collection their Transport Fuel usage became significant and additional Transport Fuel audits needed carrying out.

STEPS TO ESOS COMPLIANCE - DEFINE

Understanding the full UK organisation structure, as defined in the EA ESOS guidance, is not always straight forward, and agreeing structures and responsible directors can be challenging and take time.

At this stage sub-organisations or sites can be disaggregated and report independently.

Hopefully, most organisational structure issues were resolved in Period 1, but it is important that good records are maintained to assist in the scoping stage of Compliance Period 2 (ending December 2019).

This is an immediate opportunity for sites or businesses, who may not have previously communicated, to share knowledge, processes and best practise

STEPS TO ESOS COMPLIANCE - MEASURE

Capturing energy / fuel usage of all types, and across the full organisation, is the first and most critical step.

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At this stage, the 90% Areas of Significant Energy Usage can be identified and a detailed audit plan prepared and agreed.

One of the challenges of ESOS has been capturing and combining data from different parts of organisations, often not in common or standard format (ideally everything reporting in kW).

The old saying 'if you can't measure it you can't manage it' was highlighted repeatedly, particularly in the area of transport fuel usage. Data on annual usage of transport fuel was hard to find and few or no processes were in place to manage and control it.

now to capture transport fuel usage, in readiness for the ESOS compliance Period 2 assessment, but also to identify and deliver energy savings.

STEPS TO ESOS COMPLIANCE - ANALYSE

Detailed energy / fuel usage data needs to be collected and analysed for the Areas of Significant usage.

As an example this may be Half Hourly data (HHD) from electricity suppliers, invoices or manual meter reads.

We will also look at activity patterns or production outputs to do relative measures of usage.

Half hourly data (HHD) has proven to be the most significant source of energy saving opportunity identification.

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As P272 (mandatory half hourly billing) is rolled out, more HHD will become available. This is a resource that allows ongoing monitoring and identification of unusual energy usage patterns and should be reviewed regularly, not just every 4 years for ESOS.

STEPS TO ESOS COMPLIANCE - IMPROVE

We will tailor audits to identify energy saving opportunities in the areas of significant usage. Studies already carried out within an organisation, such as Lighting Assessment, Compressed Air Study or TM44 Air Conditioning Audit, will be incorporated into the ESOS assessment improvement opportunities.

We will evaluate paybacks, with the aim of identifying at least 5% cost effective improvement opportunities. Where practicable this will include full Life Cycle Analysis of potential projects.

The opportunities will fall into the following areas:

  • Good Housekeeping.
  • Invest to Save.
  • Design and Asset Management.
  • Organisational Realignment, including Renewable Technologies if appropriate.

Most organisations are already actively pursuing energy savings improvements, although not always in a prioritised manner.

Our aim is to enhance the work that you are already doing and help to identify the additional improvements that will impact most significantly.

As Lean consultants we will focus on 'Good Housekeeping' improvement opportunities, which offer the most cost effective energy saving opportunities, such as introducing improved metering and targeting systems and shutdown / start up procedures.

STEPS TO ESOS COMPLIANCE - CONTROL

ESOS is a mandatory compliance scheme and as such there are specific requirements.

As an RPEC registered ESOS Lead Assessor we will sign the completed ESOS assessment report prior to the final sign-off by the qualifying organisation's Responsible Director.

We will then register completion of the ESOS assessment process with the Environment Agency, before the next Compliance Period end (5th December 2019).

Incorporating ESOS findings into existing management systems, such as ISO 14001, improves the likelihood of opportunities being implemented.

Whilst some organisations have completed ESOS as a regulatory 'need-to-do' process, it has been noticeable that those organisations whose Director and senior management team have most engaged with the process, have got the most benefit out of ESOS.

We strongly recommend engaging the senior management team in the process at the earliest opportunity.