Would Brexit mean the end of ESOS?

Energy, ISO Standards, Management Systems

The Energy Savings Opportunity Scheme Regulations 2014, which came into force on the 17th of July 2014, are made under section 2(2) of the European Communities Act 1972 and implement Article 8(4), (5) and (6) of Directive 2012/27/EU on Energy Efficiency. Part 2 of the Regulations establishes the Energy Savings Opportunity Scheme (ESOS), which is administered by the Environment Agency. The Scheme introduced the requirement for businesses to conduct mandatory energy audits to identify opportunities for greater energy efficiency.

ESOS Regulations 2014

The UK’s vote to leave the European Union (EU) will create many challenges and uncertainties while a new relationship between the UK and the EU is established. With the deadline for triggering Article 50 looming – expected on or around 15 March 2017 – the future of UK energy policy and regulation is somewhat uncertain. It is quite possible that energy legislation implemented on the back of EU Directives will be affected. EU regulations and targets which are not enacted in UK law would no longer be binding. However, UK laws resulting from EU Directives will remain, unless the new Parliament decides to repeal them.

The future of ESOS in its current form is unlikely to change. It is a piece of UK regulation meaning that although its future is uncertain as the government has promised to simplify business energy reporting schemes, it is unlikely that Brexit would impact this. In other words, unless ESOS is repealed, the requirement will continue to be mandatory for UK businesses even post-Brexit.

Minimising risk and moving forward with ISO 50001

Any business that currently qualifies for ESOS should continue to meet its requirements. Concentrating on maximising the business benefits of implementing ISO 50001 rather than compliance alone would put organisations in a more robust position to tackle any changes to legislation.

It is advisable for businesses to implement ISO 50001 across 90 – 100% of their energy usage as part of an integrated energy management strategy. In addition to ESOS compliance, implementation of ISO 50001 provides businesses with the following benefits:

  • Achieves energy savings of 10%-25% through close monitoring of energy management policy
  • Builds energy management best practice into business practices
  • Improves transparency and communication of energy resource management
  • Helps to evaluate new energy-efficient technology
  • Provides a framework to promote energy management throughout the supply chain
  • Reduces administrative work

At Pegasus, we help organisations in a wide range of sectors to implement functional energy management systems, and can assist you at any stage of the project, including:

  • Preparation of your organisation’s energy policy
  • Preparation of your Register of energy legislation – see our Pegasus Legal Register
  • Planning your energy management system
  • Preparation and / or review of energy aspects and opportunities
  • Implementing the energy management system
  • Establishing energy objectives and targets
  • Analysing energy performance, setting baselines and selecting EnPIs
  • Training your employees based on your organisation’s specific needs
  • Pre-assessment audit to make sure you meet certification standards
  • Ongoing assistance to ensure continued compliance and improvement

 

Sources:

Inenco

Brexit Briefing 

Energy Manager Magazine 

Tags
economic benefits of ISO standards , Energy , Energy Audit , Energy Management , ISO 50001
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