08000123456

Bigger business savings forecast from ESOS

Bigger business savings forecast from ESOS

Bigger business savings forecast from ESOS

A new ruling that obliges large firms to carry out an energy audit every four years could save businesses far more than was initially expected by the government.

The Energy Saving Opportunity Scheme (ESOS) brings Article 8 of the European Union's Energy Efficiency Directive into force in the UK - and some 7,300 enterprises in up to 200,000 buildings are expected to comply with this scheme.

Managing director of certification at the Carbon Trust Darran Messem commented: "The regulations will also apply to a number of companies that are already reaping the benefits of cutting carbon."

Between 2015 and 2030, the government estimates a benefit to the national economy of £1.9 billion, which is based on a prediction that only six per cent of energy saving opportunities found for buildings and industrial processes will be completed.

However, an analysis carried out by the Carbon Trust suggested the actual savings are likely to be far greater than expected - up to three times higher.

More than 200,000 fully-costed energy saving recommendations to more than 35,000 UK businesses have been provided by the Carbon Trust so far. This has been taken as an indication that four in ten simple recommendations with quick paybacks are implemented. On top of this, a further two in ten of the more complex or long-term recommendations are also adopted.

Around 15 per cent can be shaved from energy bills by large firms taking these efficiency measures on board, with an average return rate of 48 per cent and payback within three years.

Readily available and well-established technologies in areas such as lighting and heating can help companies to achieve these returns - showing that being environmentally friendly really can offer a wide range of business benefits.

Director of implementation at the Carbon Trust Myles McCarthy described the scheme as a much-needed wake-up call for those firms that are yet to take any action. He added that identifying the opportunity in the first place is only a small part of the efforts. This is because businesses will continue to pay over the odds on their energy bills unnecessarily if the recommendations are not implemented.

Mr Messem underlined the fact that 500 larger enterprises in the UK already hold the Carbon Trust Standard - and these will all be expected to comply with the new ESOS regulations.

"These businesses are amongst the leaders that are already taking serious action to regularly measure energy use and certify their carbon emissions, going beyond just identifying opportunities for energy saving and committing to make real reductions," he commented.

It was also noted that any activity undertaken to certify to the Carbon Trust Standard can in itself act as an alternative route to complying with the regulations.

"I am also pleased to announce that we are currently making further improvements to the methodology and certification process for achieving the Carbon Trust Standard, making it even simpler to comply with the ESOS regulations at the same time as certifying," Mr Messem remarked.

 

Posted by William Rodriguez

Image courtesy of Thinkstock/iStock