According to the government ESOS has already resulted in estimated annual efficiency energy savings of 1.65TWh from buildings, 1.51TWh from industrial processes, and 0.52TWh from fuel efficiency. Whllst this is a significant achievement there is still scope for further improvements and such results demonstrate that ESOS should be seen as opportunity to improve the efficiency of business operation and thereby the bottom line.
A consultation on improvements to the Energy Savings Opportunity Scheme (ESOS) was launched on 6 July 2021. The consultation sets out proposals for strengthening the scheme and will incorporate more participants and additional actions to bring greater results. The Government is proposing improvements in a number of areas.
Improving the quality of audits through increased standardisation of reporting requirements – To improve the quality of audits, the government is looking to add an ESOS Compliance Report. It is also proposing that the ESOS summary report should include an overall energy intensity metric for the current phase and previous phases where data is available.
Inclusion of a net zero element to audits – To increase focus on energy management and behavioural change, recommendations that specifically cover data quality, energy management processes, behavioural change, zero and low-cost measures, short term investments and longer term investments. In particular, the assessment should identify the potential for investment in renewable electricity, as well as the potential for load shifting of electricity use to off-peak times and for investing in smart technologies and storage solutions that facilitate this.
Required Use of Data from Smart Meters – Analysis of ESOS reports suggests that the consumption data recorded by smart and advanced meters is not yet routinely included in reports. It has been proposed that analysis of this data by the ESOS assessor should be included as a standard within ESOS reports where data is available.
Reduction of the De-minimis Level – To ensure that sites are not in the 10% usage allowance, it has been proposed that the de-minimis level would be reduced to 5%.
Display Energy Certificates and Green Deal Assessments are also to be removed as compliance routes for ESOS.
In addition to the above the Government proposes to extend the scheme to medium sized enterprises, require public disclosure of high-level recommendations and mandate the implementation of ESOS recommendations.
If implemented, the Government expects that changes would take effect from Phase 3 of the scheme, which covers 2019-2023. Businesses will be required to report on ESOS Phase 3 before 5 December 2023.
We are formulating our response to the consultation and would welcome any thoughts you may have on the proposed areas of improvement. The consultation closes on 28 September 2021. To have your say, please email the compliance team at compliance@carbonxgen.com or to discuss this further please call Melanie Kendall-Reid on 01252 87 87 22.