February 18 Newsletter

February 18 Newsletter 9th February 2018

Achieving ESOS Phase 2 Compliance

We are now over half way through the second phase of the Energy Savings Opportunity Scheme (ESOS). This legislation obliges companies and charities with over 249 staff to undertake a structured Energy Assessment within a four year timeframe.

This must be delivered using an accredited ESOS Lead Assessor, and businesses must register their compliance by 5th December 2019. Organisations that have an ISO50001 certified energy management system in place to cover all UK energy use can certify as being exempt.

ESOS covers energy and fuel paid for as a measured commodity, including:

• Electricity used in buildings and industrial processes

• Fuels such as natural gas, diesel, fuel oil and biomass used in buildings and industrial processes

• Transport fuels used in company vehicles or staff vehicles used for business purposes

About 8,000 organisations are affected by this legislation and enforcement action is currently underway by the Environment Agency against those that did not fully comply with phase 1.

If your business has recently expanded over this threshold or if you were already caught by phase 1, now is a good time to plan how you are going to meet the requirements of ESOS. At this point, there is still time for most businesses to implement energy saving measures that make complying with ESOS a cash positive undertaking.

Phase 1 was introduced with less than 12 months remaining before the reporting deadline, leading to a rush to comply and pressure on the availability of Lead Assessors. As a result the quality of ESOS Assessments was mixed, with 80% of those audited by the Environment Agency listed as non-compliant or in need of remedial action.

In contrast Briar Associates ‘B-Core’ methodology has passed regulatory audits, ensuring successful compliance for our clients. We delivered over 130 ESOS Phase 1 programmes, including 430 site audits that identified over £26m of annual cost savings of which almost half required little or no capital investment.

Avoid the rush for ESOS compliance in 2019 by engaging with Briar Associates now. For more information, please contact us today on 01384 397777.

Current Market Position

The beginning of January saw wholesale energy prices fall thanks to healthier supply conditions in the UK.

Following a few cold days at the beginning of the year, the UK weather improved and demand for gas dropped leading to an oversupplied system. The North Sea Forties pipeline also returned to service for the first time since December 11th, meaning the UK’s supply outlook was much healthier.

As the first week of the month closed storm Eleanor hit the UK. In the days that followed wind generation fell significantly leading to higher demand for the more expensive CCGT (Combined Cycle Gas Turbine) generation. In addition there were concerns that output would be cut from the Grogingen gas field following an earth tremor.

The remainder of January saw UK and Norwegian gas production strong and two LNG shipments en route to the UK. Oversupply, weakness in the oil market and strength in the GB Pound as it continued to outperform the Euro, resulted in further price falls.

As it stands the weather will continue to be the biggest influence on UK wholesale prices as we go into February.

energy consultancy