Firms Facing Hefty Fines over ESOS

Large firms all over the UK are being warned that they must comply with a new energy-saving initiative by next month… or face a penalty.

Key points

     ◊   5-figure fines being risked by non-compliance for 5 December 2015 deadline
     ◊   Extension given, but businesses must appoint assessors & let the EA know by 31 Jan 2016
     ◊   Firms starting assessments now are “cutting it very fine”
     ◊   Cutting energy waste still a great opportunity for those not under the ESOS scope

What is ESOS?

The Energy Savings Opportunity Scheme (ESOS) has been set up as a result of an EU directive and means all large businesses – with more than 250 employees and/or a £50million turnover – must carry out comprehensive assessments of energy use and energy efficiency at least once every four years.

By December 5 2015 they must have complied by the regulations or will be at risk of enforcement action which could include civil penalties – in other words, a fine. “The fines could be quite hefty,” warned Duncan Banks, CEO at IU Energy.

Update: Discretionary waiver

The Environment Agency (EA) has recently issued a discretion to waive or modify the penalty if it is informed by December 5 that the assessment will be carried out and is submitted before the end of January 2016.

This discretionary waiver “gives breathing space – but not very much.”

65% of firms have done nothing to address the deadline

Companies still need to tell the EA they have appointed an assessor, such as IU Energy, to carry out the survey. Mr. Banks warns:

“These are in-depth assessments and are time consuming… There are a lot of companies that have not done anything about it and if you are starting it now, you are cutting it very fine”


Contact us

If you are worried about ESOS or want to know more or Energy Efficiency, please call

01752 262626 or Fill in your contact details here. 


Important things to remember

◊   You don’t have to qualify for ESOS to benefit from energy efficiency. Cutting down on energy waste is a good thing for all firms – including smaller ones not covered by ESOS regulations.

  Many organisations are wasting 20p in the pound on energy bills, even if they are in energy efficient buildings. “The key is to reduce your energy waste,” he said, “Get rid of waste before you look at generation solutions”

◊   IU Energy’s advice: First identify waste and then reduce waste.

  IU Energy works with firms to maximise savings and encourages them to look at a broad spectrum of solutions. Often companies only consider trying to buy cheaper energy, when in fact savings can come from a wide range of solutions. Selecting green-generated energy and managing demand effectively can help businesses “take control of their energy.”

IU Energy’s clients include
Leading South-West companies –

◊   Foot Anstey LLP
◊   The Underhill group
◊   Pepper Communications
◊   Princess Yachts and more…

Case studies – 

IU Energy have successfully facilitated ESOS compliance for a number of clients, E.g:

     ◊  Foot Anstey LLP
     ◊  Builders merchant, RGB Holdings Ltd


Contact us

If you want to know more about ESOS or Energy Efficiency, please call 01752 262626 or Fill in your contact details here.