Partner Article

Nearly 16,000 Businesses could Face 50k Fines

04 June 2015

NEARLY 16,000 UK BUSINESSES TO BE FINED AND ’NAMED AND SHAMED’ IF THEY AVOID NEW EU ENERGY AUDIT

Many companies unaware of requirements, with less than seven months until compliance deadline

Environmental Agency fines of up to £50,000 and public ‘shaming’ for non-compliance

New research by BTG Green, part of the Begbies Traynor Group, indicates that nearly 16,000 (15,952) UK businesses could face fines of up to £50,000 and risk being publicly named and shamed if they fail to comply with a new mandatory EU energy directive before 5 December 2015.

The Environmental Agency’s new Energy Savings Opportunity Scheme (ESOS) was formally unveiled last summer as the UK government’s response to new EU Energy Efficiency Directives, calling on companies to identify and improve their energy efficiency.

The mandatory scheme requires UK enterprises with over 250 employees or an annual turnover in excess of 50 million Euro (Approximately £38,938,000) and an annual balance sheet total in excess of 43 million Euro (Approximately £33,487,000) to ensure a qualified ESOS Lead Assessor measures or audits their energy consumption across all areas of their business, including buildings, transport and industrial activities, in order to identify cost-effective energy savings.

This formal ESOS Assessment must then be submitted to the Environment Agency ahead of the official deadline on 5th December 2015; failure to do so could result in a fine of up to £50,000 and the potential for further civil penalties and reputational damage through the publication of details surrounding individual companies’ non-compliance.

However, according to BTG Green, with less than seven months to go until the submission deadline, many UK companies have yet to start the time-consuming audit process, unaware of the significant compliance and administrative burden that the ESOS Assessment can impose on their operations and staff. More concerning still, due to limited marketing activity from the Environmental Agency at the time of launch, a significant proportion of the 16,000 companies due to be affected by ESOS are reportedly unaware that the scheme even exists.

Julie Palmer, Partner at BTG Green, said:

“Since the scheme was quietly launched last summer, awareness of the ESOS requirements remains worryingly low, with nearly 16,000 of the affected companies either unaware that they need to take part or dragging their feet. The ESOS energy audit itself will be a major compliance and administrative burden, particularly for companies working across multiple sites and regions, so with just seven months to complete it, companies need to make this an urgent priority or risk significant financial and reputational repercussions if they miss the upcoming deadline.

“This new EU-backed scheme is not to be trifled with as the Environment Agency is trying a new ‘get mean to get green’ tactic and plans to vigorously crack down hard on any companies that try to slip through the net - feigning ignorance won’t save anyone from significant fines when 5th December comes around.”

According to BTG Green, while ESOS is a mandatory scheme, it should not be dismissed as just another carbon tax but rather an opportunity for tangible financial savings.

Julie Palmer added:

“Despite the short term costs, the prospective benefits of ESOS far outweigh the potential negatives. We estimate that a £5K audit could identify savings worth £120,000, while a £50K audit could identify savings worth £1.2m. Indeed DECC has estimated that, if ESOS participants implement the energy efficiencies identified in their assessment, the UK economy could benefit by as much as £2.8bn per year.”

- Ends -

For further information contact:

MHP Communications

Katie Hunt / Jade Neal / Giles Robinson / Jennifer Iveson / Charlie Bristow

Tel: 0203 128 8100

Email: Begbiescorporate@mhpc.com

Notes to editors:

About BTG Green

As the UK’s leading provider of professional services to companies from SMEs to large corporations, Begbies Traynor Group has developed BTG Green, in partnership with Greenoke Assessments and Installations Ltd, to provide an extensive range of assessments for both the commercial and domestic sectors through our in-house team of Lead Assessors.

These assessors are accredited and part of an official register of professionals approved by the Environment Agency. Our collective understanding of particular industries will be key to effectively assessing and auditing for ESOS as the scheme will affect each sector differently, requiring a full appreciation of what energy savings opportunities are realistic and appropriate in each case. Further information can be found at: http://www.esoshelp.com.

About Greenoke

Greenoke Assessments and Installations Ltd is a key member of the Greenoke family group of companies. The group focuses on delivering Green Deal Assessments and energy efficiency consultancy and installing Energy Efficiency measures across the United Kingdom. Further information can be found at: http://greenoke.com/

This was posted in Bdaily's Members' News section by BTG Green .