Phil Draper from Cavendish Engineers on phase 2 of the government鈥檚 Energy Savings Opportunity Scheme and the benefits for UK companies as we countdown to Brexit
There鈥檚 no doubt about it: energy is a massive contributor to savings across the bottom line and it鈥檚 why UK companies should be paying close attention to ESOS and the associated benefits.
Introduced in 2015 and a part of the Energy Efficiency Directive from the European Union, ESOS is the UK strand of that plan to reduce consumption in this country and we鈥檙e fast approaching the December 2019 deadline for phase 2 of compliance.
With Brexit just a year away, some companies will be thinking 鈥渨hy bother?鈥 But that couldn鈥檛 be further from the truth. The Brexit transition period goes beyond the ESOS deadline, meaning fines for non-compliance plus we should be proud that the UK is seen as a leader when it comes to energy efficiency. Let鈥檚 build on that for future generations because, whether we like it or not, increases in asthma rates and air quality are coming from somewhere. If you removed all of the boilers in London it would be the equivalent of taking half the cars off the road in the capital, so ESOS is a real driver for improved wellbeing.
ESOS is mandatory for any UK company with over 250 employees or a turnover of 鈧50m and a balance sheet of 鈧43m. But what are the actions going to be from those companies meeting the criteria?
The aim is to reduce energy use in the UK but ESOS has a reputation as something that鈥檚 got to be done, a box-ticking exercise. Are UK companies really seeing the bigger picture - reduced energy usage and, in many cases, big financial savings?
ESOS is all about the long-term vision, not short-term deadline compliance and it鈥檚 why companies need to be on top of their data. It plays such a big role and should be constantly evaluated.
Our research shows that most of the buildings we鈥檝e worked in have the tools to be far more effective and smarter with their energy usage and they don鈥檛 always need the latest technology to see better results.
If you always use your washing machine at 60 degrees, then it doesn鈥檛 really matter if it鈥檚 a new or old model. You鈥檒l be using the same energy regardless because you鈥檒l always have the dial on default. But if you understand the full scope of the technology in front of you then you鈥檒l see that the dial can be turned to 40 degrees - now you鈥檙e on the road to saving energy.
The transition to being energy efficient can be as simple as that - it can be operational and you don鈥檛 always need the expensive equipment to see change. The initial fear at organisations is usually: 鈥渃an it be done?鈥
But by making the most of infrastructure that鈥檚 in place already, using benchmarking data and analytics to identify future energy saving opportunities, and organisations will be able to look ahead to revising targets to an even bigger percentage for phase 3 of ESOS.
Postscript
Phil Draper is a management consultant at Cavendish Engineers
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