Category Archives: News

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ESOS Already Resulting in Net Cost Savings, According to UK Government.

The Department for Business, Energy & Industrial Strategy (BEIS) published the Energy Savings Opportunity Scheme (ESOS) evaluation report in late February.

BEIS Logo

The report looks at how effective energy audits and energy reporting have been, particularly relating to the ESOS scheme, and gives us some encouraging findings:

Key Statistics

According to the research, significant measures taken by organisations to improve their efficiency have been associated with the ESOS scheme:

  • 38% of all implemented or planned energy efficiency measures;
  • 32% of all fuel efficiency measures;
  • 1.65 TWh saved as a result of changes made to buildings;
  • 0.52 TWh savings from fuel efficiency;
  • 1.51 TWh savings from changes to industrial processes.

Other Findings

The study also found that ESOS had encouraged audits in many businesses for the first time, resulting in better data gathering, more discussion about opportunities and improved awareness of energy or fuel consumption and associated cost.

ESOS identified brand new energy saving opportunities for some audited businesses, and in other cases it gave better validation of efficiency measures that were already planned, making the audits more valuable.

According to the report, 37% of organisations said that ‘changes made as a result of ESOS had already led to net cost savings’. Increased staff productivity and reputational benefits were also attributed by businesses to the ESOS process.

What Should Your Company Do?

If your organisation has had a ESOS report, don’t limit your ESOS involvment to a regulatory box-ticking exercise. The recommendations in your ESOS report are aimed at reducing energy consumption, and that will save your business money.

Speak to Envantage Ltd about taking steps to reduce your energy consumption and improve your bottom line profitability.


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SECR is now underway. What should your organisation be doing already?

The Streamlined Energy & Carbon Reporting or SECR framework came into force in 2019. What do you need to do to make sure you’re prepared to comply?

The Basic Facts

  • SECR has partially replaced the CRC Energy Efficiency Scheme (also known as the Carbon Reduction Commitment).
  • The number of organisations affected by SECR is almost 12,000, compared to just 4,000 for CRC: You might be included in SECR even if you were never in CRC.
  • Qualification criteria have changed, so it’s important to check whether you are affected.

Are you captured by SECR?

All quoted companies (already covered by Mandatory Carbon Reporting, also known as Mandatory Greenhouse Gas Reporting) are required to report under SECR rules which have been altered from previous schemes.

Since April 2019 all unquoted companies and Limited Liability Partnerships (LLPs) which meet two of the following criteria are also obliged to comply:

  • At least 250 employees
  • Annual Turnover greater than £36 million
  • Annual Balance Sheet total greater than £18 million

If you’re already covered by Mandatory Carbon Reporting:

If so, from 1st April 2019 the requirements have changed. You will need to ensure that you know how this might affect your business. At Envantage we’re working with many large businesses to ensure that SECR does not interfere with business as usual.

If you’re new to SECR? (Mainly unquoted Companies and Partnerships):

Reporting Carbon Emissions may be new to you, but it‘s not new to us.

Here at Envantage we’ve been measuring greenhouse gas emissions for 14 years, working with companies, accountants and auditors since the inception of Mandatory Carbon Reporting to assure compliance for some of the largest business in the UK. Our experience is unrivalled, giving you peace of mind.

If you’re still unsure whether your organisation is affected, or if this is a surprise, contact us today to check the impact on you.

What will you have to do?

SECR came into force on 1st April 2019. In your first accounting period beginning after that date, you are obliged by the regulations to quantify your energy consumption from electricity, gases, and business transport. You will also be obliged to report energy against an intensity measurement and, after the first year, compare your performance with the previous year.

This information is required to be published in the Director’s report within your published accounts, for the transparent view of your stakeholders. You also need to publish narrative information about the energy efficiency measures you’ve taken during a reporting period.

SECR compliance services from Envantage Ltd
Ensure that your organisation is SECR compliant with Envantage Ltd

Assuring your compliance

SECR is an important part of your obligations under the Companies Act 2006, and your published results can be subject to official audit by HMRC. Therefore it’s essential that you know the risks and ensure that your SECR compliance and reporting is in safe hands.

By choosing the right partner you can get on with your day job in the knowledge that your compliance is being dealt with professionally.

Can SECR be a benefit to you?

Although SECR is a mandatory scheme and there are strict rules to follow, it is aimed at reducing the carbon emissions of UK organisations. Embracing its values can be a benefit to you.

Publishing the required information helps your potential customers and your stakeholders to understand your approach to improving efficiency and sustainability, boosting your brand value. The information used in your submissions can also be invaluable in your marketing literature and tender processes, helping you to underline positive values and win more customers.

Many organisations also use the information required for mandatory submissions as a start point to measuring their own full Carbon Footprint. Why not take the next step and build a complete view of your Carbon impact? The brand benefits of this can be significant: ask us how we can help.

Is your organisation ready for SECR compliance?

SECR affects organisations from the first month of your first accounting year after 1st April 2019. It is not voluntary. Don’t leave things to the last minute.

If you qualify, you will need data collection routines in place to make sure you’re protected against the risks of non-compliance. As the 2019 accounting year progresses, help will become more scarce and expensive as experienced competent experts are in short supply. A managed process throughout your reporting year is the best approach to SECR. By being prepared and protected, you can avoid last-minute work and last-minute charges.

Envantage has a vastly experienced team and can also offer audit support: we’ve worked alongside auditors for many of our clients and will support you with HMRC if necessary, to provide the evidential records you will need in the event of any audit.  You can rest assured that you have the right partners looking after you.

Do you have any questions? Protect yourself by asking now

Your Annual Report for financial years beginning on or after 1 April 2019 will need to contain your SECR information, so if you’re not certain what will be required, now is the time to check. Contact Envantage today to ensure that you’re going to be compliant – call free on 0800 054 577 or email savings@envantage.co.uk


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Envantage’s Team Strengthened By Experienced Energy Consultants

Envantage has recruited two highly experienced Energy Consultants to add strength and depth to its Compliance and Sustainability services.

Russell Monkman joined us in 2018 and is already working with our clients to safeguard regulatory compliance and secure financial rewards. Russ has a vast experience of energy compliance and sustainability, both as an end-user and as a consultant working for businesses in a huge range of sectors.

Russ is a member of the Energy Institute, a Chartered Energy Manager and ESOS Lead Assessor, bringing a wealth of experience and technical knowledge to reinforce our growing team of energy and low carbon specialists.He also holds ISO 50001 Lead Auditor status.

In addition to his proven skills in the execution of ISO 50001 audits, Russ was shortlisted for the Industry Expert category at the 2018 TELCA awards. He has set up EU Emissions Trading Scheme permits, taken part in audits and to verify emissions and made submissions to ETSWAP for clients. He brings more than 30 years’ experience in carbon and energy management, compliance, technical services and the chemicals industry. Russ also has a degree in Electrical Engineering and is a respected and prolific speaker and blogger on a wide range of environmental and energy management topics.

Russ began dealing with energy in the Chemicals sector at Ciba Clayton, looking after their huge site just outside Manchester. Following that experience, he joined a local energy consultancy to help them broaden their energy offering. Since then, Russ has helped hundreds of organisations to obtain, maintain and protect compliance with the various energy schemes throughout the UK. He has also identified countless thousands in savings opportunities with his experienced, practical approach to spotting energy waste.

Michael Holness also brings a wealth of experience, gained in a number of consultancy roles with clients across a wide range of sectors. Mike joined Envantage in early 2019 after spending the last 15 years helping organisations to manage compliance and identify financial savings. Mike is also an ESOS Lead Assessor with the Energy Managers Association.

Mike has worked at major energy consultancy firms, delivering ESOS energy assessments and managing Climate Change Agreements for clients. He also has experience of relevant ISO schemes and the EU Emissions Trading Scheme, as well as implementing Automated Monitoring and Targeting on client sites.

Both Russ and Mike bring an enormous breadth and depth of experience to the Envantage team, enabling us to identify and secure savings for more clients and sites and to offer a more hands-on service to our existing customers.

Envantage was incorporated in April 2004 by experienced professionals within the energy supply industry with a vast knowledge of energy efficiency, energy legislation and energy procurement. We have developed our team over the years, building an impressive range of energy management and carbon reduction services. This has been achieved by recruiting highly capable experts in their related fields, like Russ and Mike.

Our stronger team can help your business to achieve more secure savings and to identify opportunities to spend less money on your energy. Contact Us Today for more details.


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Climate Change Agreements managed by Envantage

Are you failing your Climate Change Agreement (CCA) targets and facing carbon buyout costs?

Find out how you can get the most out of your agreement and reduce carbon buyout costs with Envantage.

Climate Change Agreements (CCAs) allow a valuable discount on CCL charges to be realised, saving agreement holders thousands of pounds per year (link to CCL discount rates). CCL discount rates have just increased due to the removal of the CRC scheme. To ensure you get this higher level of discount, you need to make sure you submit new PP10 and PP11 forms before the end of the month.

Due to the rise in CCL charges and the increase in associated discount rates, holding a CCA is now more valuable than ever. As a result, it is imperative that your agreement is correctly managed to ensure compliance, and that you are taking steps to get the most out of your agreement as we enter the final target period for this phase.

Failing a target and buyout costs: How to make decisions on paying

In return for this valuable discount, CCA holders are required to meet energy and carbon reduction targets. We have now reached the end of the reporting stage for the third target period (2017 & 2018), with many agreement holders facing carbon buyout charges, which you may also have heard being called fines.

Many organisations unfortunate enough to be facing buyout charges may be unsure if it’s worth staying in the scheme. You may also be considering the likely higher buyout charges for the final target period and how to reduce costs.

If you have a carbon buyout, these charges must be paid by June 2019 in order to stay in the scheme and continue to benefit from the CCL discount. Some agreement holders may be considering the cost of the carbon verses the CCL savings they have achieved when deciding to pay this or not. For some this will be an easy decision, however, if you have a large carbon buyout cost, this may be a more difficult exercise.

Tracking your CCA performance and savings

To make a decision on paying carbon buyout charges, or reviewing how the agreement is performing, it is important to not just look at each target period in isolation. Many factors over the life of the scheme to March 2023 need to be considered such as:

• Higher CCL savings over the future of the scheme due to CCL rate and discount rises.
• Expected carbon buyout costs in target period four.
• Sector and Environment Agency fees.
• CCL savings over the ‘non target’ period from January 2021 March 2023: Organisations that pass or purchase carbon to pass target period four can continue to get the CCL discount, but face no targets or buyout costs for the final period.

Making the right decision about your Climate Change Agreement

Envantage can conduct a full cost benefit analysis of all savings and expected costs over the lifetime of the scheme so you can make an informed decision on whether to pay your current carbon buyout. Making the wrong decision may cost you your agreement, and a large increase in energy costs. Why not benefit from knowing this information on a more regular basis and accrue for carbon costs? Envantage offer this cost benefit analysis as part of their regular CCA management performance tracking reporting.

If you are lucky enough to not have a carbon buyout for target period three, do you know if you have an expected carbon buyout for the final target period and if so, are you taking steps to minimise this whilst you can? Contact Envantage to find out more about how we can project your expected performance for the next target period and reduce costs.

Climate Change Agreements - with Envantage
CCA Help from Envantage’s Expert Team.

How to alleviate failing CCA targets and carbon costs

We have now entered the fourth and final target period. Most CCA holders will fail targets in this period and therefore face carbon buyout costs. If you are unsure of your current performance against targets, then Envantage can help review and predict this as part of our performance tracking service.

As we are still in the early months of target period four, the good news is that steps such as energy audits can be taken to help reduce buyout charges if action is taken soon.

Energy auditing and energy efficiency

As well as a qualitative requirement of the scheme, having an action plan to tackle energy wastages via improved energy management, awareness and monitoring, and a range of energy savings projects to implement, can help reduce energy consumption, expected carbon fines and energy cost.

Envantage has a number of highly experienced energy efficiency consultants specialising in the industrial sector, who can help identify areas of energy inefficiency and recommend energy savings initiatives. Our energy auditing service identifies savings of up to 40%, from low or no cost measures up to those requiring capital expenditure. If you are affected by ESOS, then these link nicely together and we can help you meet ESOS compliance as well as alleviate CCA target costs.

Review of product mix and CCA target ‘currency’ or throughput metrics

Agreements usually track performance on a relative basis (e.g. kWh/tonne), using one simple metric such as production volume. Most agreements were set up a many years ago, and for some sites the type of products manufactured are not simple enough to have only one metric, in other cases process improvements have impacted energy intensity significantly over the course of the agreement. As a result, this can mean some sites can find it difficult to pass targets simply due to the way performance is tracked.

Luckily, there is a mechanism available in the agreements to consider multiple products and how performance is tracked to account for such changes. This can allow some sites to reduce carbon buyout costs or even convert performance into a pass. Envantage’s experienced consultants can assess if there is scope at your site under the strict rules, and work with you to amend targets and reduce carbon costs.

If you would like further information on performance tracking, compliance, and reducing your carbon costs please contact Jessica at Envantage on 0161 448 7722 or Jessica.harris@envantage.co.uk – or fill in the Contact form on our website.


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ESOS Phase 2 – WHAT can you do?

If you’ve been keeping up to date with ESOS, you’ll know that the deadline for submitting your notifications of compliance is 5th December 2019. So, why should be looking at it now?

(If you haven’t been keeping up to date, keep reading: you probably need to know this.)

THE NOTIFICATION PORTAL IS NOW OPEN – WHAT DOES THIS MEAN?

On 8th February 2019, the Environment Agency’s ESOS notification portal opened, meaning that qualifying organisations can already complete all the steps needed for full compliance. If you’re not sure whether you are covered by ESOS, the qualification criteria are listed below.

By submitting your notification of compliance early, you will:

  • Be able to spend the rest of 2019 managing your business, without worrying about compliance submission deadlines
  • Avoid fines for non-compliance which can be up £50,000 plus £500 per day, and the risk of being ‘named and shamed’
  • Be best placed to make the savings identified in your ESOS reports

WHAT SAVINGS CAN YOU MAKE?

Typically our clients can make at least 10% saving by implementing no-cost or short payback recommendations from our work with them. Working alongside our experienced energy engineers, our clients are saving up to 30% against energy and emissions as a result of savings opportunities we’ve identified and prioritised.

DON’T MISS OUT – SECURE EARLY COMPLIANCE

Now that the qualification criteria have been fixed and the submission portal is open, let us help you to complete your compliance. Our highly experienced Lead Assessors and Energy Engineers have already managed over 300 ESOS compliance journeys for organisations like yours.

Simply call us on 0800 054 2577 or email savings@envantage.co.uk today to start making savings and stop worrying about compliance deadlines.

Alternatively visit our website to find out more information on how you can comply here: https://www.envantage.co.uk/esos-phase-2-what-should-you-do-now.html

IS YOUR ORGANISATION COVERED UNDER ESOS?

The UK Government’s own guidance defines those organisations covered by ESOS as “large undertakings”, which are:

  • Any UK company that either (a) employs 250 or more people, or (b) has an annual turnover more than 50 million Euro (£44,845,000) and an annual balance sheet total more than 43 million Euro (£38,566,700)
  • An overseas company with a UK registered establishment which has 250 or more employees who pay income tax in the UK

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SECR - mandatory under The Companies Act 2006

SECR – THE NEW, BIGGER, COMPULSORY EMISSIONS REPORTING FRAMEWORK – WHAT DO YOU NEED TO KNOW?

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There’s a new Carbon Reporting framework coming into force in 2019: Streamlined Energy & Carbon Reporting or SECR. What are the basics you really need to know?

  • SECR replaces the CRC Energy Efficiency Scheme (which you might also know as the Carbon Reduction Commitment).
  • The number of organisations affected by SECR will grow to almost 12,000, compared to just 4,000 for CRC… So, you might be included in SECR even though you’ve never been in CRC.

ARE YOU INCLUDED IN SECR?

All quoted companies (who are already party to Mandatory Carbon Reporting, also known as Mandatory Greenhouse Gas Reporting) will be required to report under SECR rules which have been revised slightly for MCR.

From April 2019 all unquoted companies and Limited Liability Partnerships (LLPs) will be included if they meet two of the following criteria:

  • At least 250 employees
  • Annual Turnover greater than £36 million
  • Annual Balance Sheet total greater than £18 million

IF YOU’RE ALREADY COVERED BY MANDATORY CARBON REPORTING AS A QUOTED COMPANY

Note that from 1st April 2019 there are new requirements. The rules you may have followed to date will change slightly so you will need to ensure that you know how this might affect your business.

IF YOU’RE NEW TO SECR – UNQUOTED COMPANIES

Reporting your Carbon Emissions may be new to you, but it‘s not new to us. Here at Envantage we’ve been measuring greenhouse gas emissions for organisations for 14 years, working with accountants and auditors since the inception of Mandatory Carbon Reporting to assure compliance for some of the largest business in the UK. Our experience is unrivalled, giving you peace of mind.

There are some exceptions, but very few. If you’re still unsure, or if this is a surprise to you, contact us today to check whether you’re affected.

SECR comes into force on 1st April 2019. In your first accounting period beginning after that date, you will need to quantify your energy consumption from electricity, gases, and business transport. You will also be obliged to report energy against an intensity metric and after the first year compare your performance with the previous year.

All of this information needs to be published in the Director’s report within your published accounts, for the transparent view of your stakeholders. You will also need to publish a narrative about the energy efficiency measures you’ve taken during a reporting period.

ASSURED COMPLIANCE

SECR is an important part of your obligations under the Companies Act 2006, and your published results can be subject to official audit by HMRC. Therefore it’s essential that you know the risks and ensure that your SECR compliance and reporting is in safe hands.

By choosing the right partner you can get on with your day job in the knowledge that your compliance is being dealt with professionally.

CAN SECR BE A BENEFIT?

While SECR is a mandatory scheme with rules to follow, it is a scheme aimed at reducing the carbon emissions of UK organisations. Embracing its values can be a benefit to you. Publishing the required information helps your potential customers and your stakeholders to understand your approach to improving your efficiencies, boosting your brand value. The information used in your submissions can also be invaluable in your marketing literature and tender processes, helping you to win more customers.

Many organisations also use the information required for mandatory submissions as a start point to measuring their own full Carbon Footprint. Why not take the next step and build a complete view of your Carbon impact? The brand benefits of this can be significant: ask us how we can help.

SECR - Transparent and clear emissions reporting
SECR – Transparent and Clear Emissions Reporting

SO… ARE YOU COMPLETELY READY?

SECR will affect your organisation from your first month of your first accounting year after 1st April 2019. Don’t leave things to the last minute.

You will need to have data collection routines in place to make sure you’re protected against the risks of non-compliance. In addition, simple supply-and-demand means that as the 2019 accounting year progresses, help will become more scarce and expensive. A managed process throughout your reporting year is the best approach to SECR. By avoiding last-minute work and last-minute charges, you will be prepared and protected.

As well as a vastly experienced team, Envantage can offer audit support: we’ve worked alongside auditors for many of our clients and will support you with HMRC, if necessary, to provide the evidential records you will need in the event of any audit.  You can rest assured that you have the right partners looking after you.

ACT NOW TO PROTECT YOURSELF

Your Annual Report for financial years beginning on or after 1 April 2019 will need to contain your SECR information, so if you’re not certain what will be required, now is the time to check. Contact Envantage today to ensure that you’re going to be compliant – call free on 0800 054 577 or email savings@envantage.co.uk


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Cut costs by 10-20% with energy efficiency improvements

Energy efficiency and sustainability are a complex collection of issues, with a potentially huge burden of compliance. However, there are huge opportunities to make savings for the organisations which embrace them.

But just how much can you stand to save by implementing economical energy efficiency improvements across your company’s operations?

At Envantage we find that the companies who implement our recommended energy efficiency improvements are able to reduce their total energy costs by between 10% and 20%.

This is across all areas of operations, from buildings and mains utilities, energy used in your processes, to emissions from your transport fleets.

How to make energy efficiency improvements

There are many energy saving solutions for processes with, buildings and vehicles alike. Where these are part of mandatory reporting schemes like ESOS, we can help you to make your energy efficiency improvements in an ESOS compliant way for maximum benefit in regulatory terms too.

Working in this way, you not only save up to a fifth on costs, but also meet the environmental demands placed on your organisation too.

This joined-up approach is how Envantage works with clients – not only to assure compliance and accurate, on-time reporting but to identify, prioritise and realise savings which contribute to your bottom line.

Financial help for energy efficiency improvements

You are not alone when it comes to making energy efficiency improvements in business, as there are many forms of funding available to help cover the upfront costs.

These can take a number of different forms, which may be appropriate to your organisation, including:

  • business improvement loans that must be paid back;
  • energy efficiency grants that are not repaid;
  • various incentive schemes and economical green business energy tariffs.

Whatever efficiency improvements you make, it’s important to ensure they are economical – that the savings will pay for themselves – and that the carbon reductions you achieve can be included in any mandatory carbon footprint reports you make. We’ll work alongside you to build a plan that works for your organisation, in practical business terms.

In many cases substantial savings can be made simply by choosing the right suppliers, and our green energy procurement services will help you to get the best green business energy tariffs while reducing or offsetting your carbon footprint as much as possible.

By working with Envantage on energy efficiency improvements, you benefit from the full range of our expertise, access to trusted suppliers and competitive green energy procurement, ISO 50002 energy audits and fully monitored energy usage to verify any savings made.
To find out more or to make an enquiry, call Envantage on 0800 054 2577 or email us at savings@envantage.co.uk and a member of our team will get back to you promptly.


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ESOS Phase 2 Compliance - Checklist

ESOS PHASE 2 – WHAT SHOULD YOU DO NOW?

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If you’ve been keeping up to date with ESOS, you’ll know that the deadline for submitting your notifications of compliance is 5th December 2019. So, why should you be looking at ESOS Phase 2 so early?

(If you haven’t been keeping up to date, keep reading: you probably need to know this.)

THE NOTIFICATION PORTAL IS NOW OPEN – WHAT DOES THIS MEAN?

On 8th February 2019, the Environment Agency’s ESOS notification portal opened, meaning that qualifying organisations can already complete all the steps needed for full compliance. If you’re not sure whether you are covered by ESOS, the qualification criteria are listed below.

By submitting your notification of compliance early, you will:

  • Be able to spend the rest of 2019 managing your business, without worrying about compliance submission deadlines
  • Avoid fines for non-compliance which can be up £50,000 plus £500 per day, and the risk of being ‘named and shamed’
  • Be best placed to make the savings identified in your ESOS reports
ESOS Phase 2 Stress - Early Compliance with Envantage removes it
Secure Early Compliance – Avoid Submission Deadline Headaches

WHAT SAVINGS CAN YOU MAKE?

Typically our clients can make at least 10% saving by implementing no-cost or short payback recommendations from our work with them. Working alongside our experienced energy consultants, our clients are saving up to 30% against energy and emissions as a result of savings opportunities we’ve identified and prioritised.

DON’T MISS OUT – SECURE EARLY COMPLIANCE

Now that the qualification criteria have been fixed and the submission portal is open, let us help you to complete your compliance. Our highly experienced Lead Assessors and Energy Consultants have already managed over 300 ESOS compliance journeys for organisations like yours.

Simply call us on 0800 054 2577 or email savings@envantage.co.uk today to start making savings and stop worrying about compliance deadlines.

WHY USE ENVANTAGE FOR ESOS PHASE 2?

If you’re not already working with Envantage, ask us about our class-leading team and what it can do for you. We have unrivalled experience: our Lead Assessors and Energy Consultants have successfully managed compliance for over 300 ESOS organisations already.

We have worked throughout the UK since 2004 in all business sectors, using our experience to reduce costs and emissions. We strive to not only assure compliance, but we work with you to deliver a positive ROI for your efforts.

ASK US ABOUT EARLY COMPLIANCE

Call us on 0800 054 2577 or email savings@envantage.co.uk today. We’ll talk to you about your options and ease your worries.

IS YOUR ORGANISATION COVERED UNDER ESOS?

The UK Government’s own guidance defines those organisations covered by ESOS as “large undertakings”, which are:
– Any UK company that either (a) employs 250 or more people, or (b) has an annual turnover of more than 50 million Euro (£44,845,000) and an annual balance sheet total more than 43 million Euro (£38,566,700)
– An overseas company with a UK registered establishment which has 250 or more employees who pay income tax in the UK


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Green electricity procurement in 2019

Green electricity procurement is not a static market – much like the wholesale energy market for traditional fuels, the cost of green electricity procurement continually varies and there are some excellent deals on business energy to be had if you are in a position to negotiate.

There are of course certain long-term benefits to green electricity procurement:

  • It supports corporate environmental responsibility commitments.
  • It can help to enhance the energy security of the UK against energy imports.
  • It is sustainable for the future rather than depleting fossil fuels.

In practical terms for businesses subject to climate change levies and mandatory greenhouse gas reporting, green electricity procurement can now usually be used to offset your emissions, if you procure a green electricity product/tariff that meets certain requirements.

 

The falling cost of green electricity procurement

One way in which the green electricity procurement market is developing faster than expected is in the falling cost of green electricity generation using certain sustainable technologies.

For example, the Solar Trade Association reports that five years ago, solar electricity costs were forecast to hit £80 per MWh in 2019, but that figure has actually dropped to £50-60 and may continue to fall to below £40 per MWh in the coming decade. (1)

This is set against ongoing rises in the cost of fossil fuels like oil and gas, and represents a significant opportunity for businesses to renegotiate green energy tariffs in 2019 in light of the current market position.

 

Finding green energy tariffs that qualify for carbon offsetting

One of the main challenges in 2019, as in previous years, is simply knowing which green energy tariffs can be used to offset GHG and carbon emissions.

At Envantage we assess the energy market to filter out the green energy tariffs that do not comply with the qualifying criteria for carbon offsetting, and to make sure that our green electricity procurement service focuses only on those that do.

This means when you procure green energy through Envantage, we can make sure that the tariff or tariffs recommended to you are fully compliant with any mandatory reporting schemes, carbon footprinting schemes and industry-specific climate challenges you face in 2019.

With regular review, we can continue to drive further cost savings by taking full advantage of the rapidly developing wholesale market for green energy procurement to bring your business costs down even further, all while continuing to support your commitments to corporate social responsibility and the environment.

  1. https://www.solar-trade.org.uk/cost-of-uk-large-scale-solar-could-drop-below-40mwh-by-2030/

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ESOS 2 is ready to go – are you compliant yet?

The second phase of the Energy Savings Opportunity Scheme, known as ESOS 2, is now ready to go, so if your company is caught by this piece of legislation, it’s essential at this point to make sure you comply with ESOS 2 regulations and requirements.

You should now have your required 12 months of data, allowing you to assess your business energy usage, identify energy saving opportunities and start planning to respond to these in accordance with ESOS 2 compliance.

If you haven’t already signed up with a Lead Assessor, now is the time – this puts the necessary experience and expertise in your corner to ensure not only that you comply with ESOS 2 but that you do so in a way that is cost-effective for your business.

 

Why ESOS 2 delays can be costly

The final deadline for ESOS 2 compliance is December 5th 2019 and while that might seem a long way away, remember that you need 12 months of correctly compiled data in your ESOS 2 report, so it’s not something you can leave until the last minute.

But beating the final ESOS 2 deadline is not just about compliance – it’s also a matter of cost, and every day we move closer to December 5th is another day that the total cost is likely to rise.

As with all processes like this, many businesses do wait until the last minute to compile their ESOS 2 report, and that means Lead Assessors will get busier and busier as 2019 proceeds.

This imbalance of supply and demand drives costs up as those with the necessary expertise face greater and greater time pressures – just as we saw with the first phase of ESOS.

You can be one of the companies that avoids these unnecessary costs in the 2019 ESOS 2 reporting year, just by engaging Envantage as soon as possible to compile and file your report.

 

Energy saving and cost cutting

The good news is that if done right, ESOS 2 should actually save you money in the long run – and it’s worth genuinely identifying areas for possible energy saving and the associated cost cutting that this delivers.

We have seen typical savings of between 10% and 30% under ESOS so far and will aim to maximise the reduction in operating costs that you are able to achieve when you implement the recommendations made in your report.

It’s rare that compliance and cost cutting go hand in hand – but under ESOS 2 and with Envantage’s help, the savings are there to be made for businesses that act promptly in 2019.

https://www.envantage.co.uk/energy-savings-opportunity-scheme-esos.html


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