The ESOS (Energy Savings Opportunity Scheme) process can be used to inform energy reduction strategy and achieve competitive advantage, but only participants that take action now can guarantee the maximum cost benefit, advises BG Energy Solutions.
With the government’s new energy audit legislation now finalised, organisations liable under ESOS must move quickly to not only comply – but also find cost savings to make the process beneficial.
Opportunity to save money
“There is an understandable level of concern from businesses at the introduction of yet another legislative burden with a cost attached,” comments Duncan Biggins, Managing Director of BG Energy Solutions. “However, the Department of Energy and Climate Change estimates that the energy auditing process can identify potential cost savings more than 13 times greater than the cost of the audit. This makes the legislation an opportunity to save money – not just another carbon tax.”
ESOS requires large enterprises (non-SMEs) to undertake in-depth surveys of how energy is used in their buildings, transport fleets and industrial processes (if applicable). The auditing process will include a list of recommendations for cost-effective ways to save energy within the organisation. The legislation is already in Phase 1, with final government guidance recently published.
Offsetting the cost
“Participants are advised to carry out the ESOS audit early and implement the energy-saving recommendations at the first opportunity,” Duncan Biggins adds. “Making energy-efficient upgrades is the most effective way to offset the initial cost of the audit. Retrofit technologies, such as voltage optimisation, building controls, low-energy lighting and variable speed drives, tend to offer the rapid payback periods that make good business sense.”
BG Energy Solutions delivers energy-efficient, future-proofed and intelligent solutions for carbon reduction. It is well-placed to aid ESOS participants with the implementation of energy-saving technologies that can unlock savings which outweigh the cost of the audit. A specialist in ‘full-circle’ turn-key solutions, BG Energy Solutions believes that getting the most out of ESOS compliance means taking a long view, which includes a smart approach to maintenance.
Long-term energy savings
“Focusing on the quick wins of energy-saving is prudent, but don’t forget that energy savings can drop off in the long term if energy-efficient technologies are not properly maintained,” comments Duncan Biggins. “It is essential to undertake good maintenance practices, in order to lock in the financial savings arising from ESOS for the long-term.”
“There’s no reason to view ESOS as a pain in the neck,” he adds. “With quick action to reap instant energy savings – and a keen eye trained on long-term energy strategy – ESOS can actually be a financial win, both this year and for many years down the line.”