ESOS compliance surges by 40%

Only 1% of eligible companies were compliant in mid-September, rising to only 6% in mid-November, so this late surge of 40% compliance has been unexpected.

Companies employing over 250 members of staff, or with a turnover exceeding €50 million and a balance sheet of over €43 million must comply with ESOS.  This requires them to undertake energy audits, and appoint a Lead Assessor to review the audits.  Recommendations for improvements in energy efficiency will be made; however, there is no obligation to implement these measures.

In early October, the Environment Agency announced an ‘extension' to the 5th December deadline.  As a result, no enforcement action will be implemented until the 29th January if notice was given to the Environment Agency by 5th December stating the reasons for non-compliance, and evidence that they are taking steps towards compliance. In addition to the 4,000 companies already compliant, 2,500 businesses (25% of eligible companies) have chosen this route, taking the total number of businesses engaged with ESOS to 65% of the 10,000 companies who must comply.

However, 3,500 companies have yet to comply, or give notice to the Environment Agency that they will comply by the end of January. The question is, what are these companies intending to do?

With the opportunity to implement measures to reduce energy spend, and fixed penalty fines for non-compliance of up to £50,000 plus a daily fine up to £40,000, the financial case for compliance is clear. Non-compliant companies could also be named and shamed on the Environment Agency's website.

With only four weeks to comply after the Christmas break, companies are encouraged to hire a lead assessor as soon as possible.

Delta-Simons are able to assist companies in complying with ESOS, by undertaking cost-effective energy audits.  See our Energy & Sustainability service pages.