Tuesday, September 1, 2015

All Large Companies Must Register for ESOS Including Freight and Logistics Outfits

Just Three Months Left to Lodge Mandatory Energy Audits or Face Penalties
Shipping News Feature

UK – It is time to remind all major companies, whether freight and shipping associated or not, that they have only three months to comply with the Energy Savings Opportunity Scheme (ESOS) regulations published by the government in June 2014. Under the ESOS rules large organisations must conduct a mandatory audit of the energy used by their buildings, industrial processes and transport to identify cost-effective energy saving measures every four years – and the first deadline is 5 December 2015.

Three categories of company are included, irrespective of the industry sectors they work in. Any UK company that employs 250 or more people, or has an annual turnover in excess of 50 million euro (£38,937,777) and an annual balance sheet total in excess of 43 million euro (£33,486,489), or, any overseas company with a UK registered establishment which has 250 or more UK employees (paying income tax in the UK). These figures to be measured at 31 December 2014.

Corporate groups are included if any part of the organisation meets the criteria. Transport companies need to be particularly aware as fuel represents such a large proportion of their operating costs, around 40% of the average for logistics operations according to the Freight Transport Association (FTA).

The FTA has been particularly interested in ensuring compliance for its members and the Association’s Logistics Carbon Reduction Scheme has been identified in the Environment Agency’s best practice guidance as a means for freight operators to compile data and take action to reduce energy usage for transport for ESOS. Speaking recently Rachael Dillon, FTA Climate Change Policy Manager, said:

“With only months until the ESOS deadline, companies should be taking immediate action now to comply if they have not done so already. Failure to do so could lead to financial penalties, not to mention having the added pressure of finding a ESOS Lead Assessor to conduct the audit in the autumn when demand is expected to peak.

“There is no getting away from the fact that ESOS will cost businesses in terms of money and administration, but to get the most out of the process and make subsequent energy savings, we urge fleet operators to act now.”

Companies which fail to lodge their audits by December 2015, and every four years thereafter, will be subject to penalties, including potentially hefty fines. Full details of the regulations can be seen on the government website.