Industry can make major savings with Energy Savings Opportunity Scheme

Phil Black - PII Editor 30/06/2014

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Industry must act quickly to get the best out of new legislation that has been finalised this week: the Energy Savings Opportunity Scheme (ESOS). It’s possible to offset the cost of ESOS compliance by making tangible cost savings, but only if the right action is taken, advises energy reduction specialist NIFES (part of Inenco Group).

The Department of Energy and Climate Change (DECC) has announced the latest details of ESOS, a major new mandate that requires large enterprises (non-SMEs) to undertake energy audits to review how energy is used on-site and in transport. Manufacturing and industrial sites represent a huge part of ESOS. But, with phase 1 already in progress and the scheme now finalised, only those companies that take swift, targeted action will be able to get the best out of ESOS.

Offsetting the cost

ESOS should not be treated as just another carbon tax. Unlike most legislation, it presents an opportunity to make financial savings, by identifying and removing sources of energy waste that drive up energy bills. Energy might not be industry’s top priority, but manufacturing and industrial processes include significant scope for saving energy.

DECC states that an ESOS audit can identify potential cost savings of 13.5 times greater than the cost of the audit. These are savings that can translate to a substantial reduction in bottom line costs – but the clock is ticking.

Don’t be fooled by deadlines

“The December 2015 deadline for ESOS may seem a long way off, but it’s a mistake to get complacent,” says Anthony Mayall, Managing Director of NIFES. “Act quickly to undertake the audit and implement the energy-saving recommendations and you’ll see in-year benefit, making the process at least budget-neutral.”

“Companies that wait until just before the deadline risk overpaying for their ESOS audit or failing to comply on time,” he adds. “With 7,260 scheme participants and only approximately 500 qualified, good-quality professionals (lead auditors must be recognised by a recognised body) able to carry out ESOS audits, there’s likely to be high demand close to the deadline.”

Selecting an ESOS partner

NIFES, part of Inenco Group, is one of the UK’s leading energy consultancies and provides an end-to-end solution for energy reduction. With its team of well-qualified energy assessors, highly-experienced in the demands of the industrial sector, it is able to take ESOS participants beyond simple compliance, in order to unlock immediate and sustained cost savings.

“Sector experience is crucial when selecting a partner,” advises Anthony Mayall of NIFES. “Industrial organisations will be aware of the potential for disruption to operations that will arise from ESOS. Each production site needs to be considered – if they are not identical, then they are classed as different site types and need auditing. But, with quick action and the right support, downtime can be minimised and output won’t compromised.”

ESOS Hub

“As part of our commitment to helping ESOS participants to understand the intricacies of this new legislation, we’ve created an independent ESOS Hub,” says Anthony Mayall of NIFES. “This online resource contains information divided up by sector, allowing those in the industrial space to get to grips with how to most effectively take advantage of the scheme.”