ESOS:

Obligation or Opportunity?

Tilly Shaw

Senior Associate

tilly.shaw@sustain.co.uk

01934 864 814

Will ESOS be a cost, or a benefit?

• DECC estimates:

– ESOS will save companies on average, around £60K over each four-year reporting cycle

– This is based on just 5% of cost-effective recommendations being implemented

– Compliance costs are estimated at £21K for the first four-year cycle

– Implementation costs are estimated at £20K over the four year cycle

University of Reading • Modern building, but not performing to design specification

• Behavioural change and low-cost interventions reduced out-of-hours energy use by 40%. Total energy use cut by 25%.

Picture: courtesy Reading Sam

Autoglass Distribution Centres An energy audit at one DC led to recommendations that can be applied across 17 distribution centres worldwide.

• Total savings identified ~£65K per year

• Typical payback within 2 years

National Trust • Surveys at over 20 rather unique sites

• Installed simple and non-disruptive measures

• Annual savings are around £40,000 - the work will pay for itself in just over 2 years

ESOS Phase 1 Timescales

2015 2014 2016

17 July 2014 Regulations come into force

By 5 Dec 2014 Assessor Registers Announced

31 Dec 2014: Qualification Date Do you qualify for ESOS?

5 Dec 2015: Compliance Date Deadline to notify EA

Time to Act?

2015 2014 2016

Appoint Lead Assessor

Lead Assessor Review

Director’s Review

EA Notification

Planning

ESOS Audits / DECs / 50001 /GDAs

Calculate Total Energy

Gather data (12 Months)

Implement Savings

Summary • ESOS – an opportunity to:

• Improve your bottom line

• Future-proof your business against energy price rises

• Make your premises more comfortable

• Win that Employee of the Year award

• Forward planning is key: ensure you have an energy strategy, not just a compliance strategy

• Act now to get Director buy-in for energy investment in 2016

• The savings are there, it’s up to you whether you realise them