ESOS deadline: Companies given leeway

Guidance released by the watchdog last week stated it will not penalise firms that miss the deadline if they can comply with the ESOS rules by 29 January 2016 and inform officials they will miss the original deadline prior to December 5.

Fewer than five per cent of the 10,000 companies estimated to fall under the new energy efficiency rules have fully complied, with the environment agency saying around 5,000 applications are expected to be filed within the next few weeks.

Industry insiders believe this is an extension to the December deadline, however the Environment Agency say this is not the case, with a spokesperson for the government-run environmental body claiming they are listening to the concerns of businesses.

Speaking to Energyzine, the spokesperson said: “We are aware that in some instances firms may struggle to meet this deadline and, as regulators, we are able to waive or modify enforcement action and penalties.

"The regulations have not changed; this is about giving organisations clarity about how we will look to enforce them."

Asked if companies were taking the deadline seriously, the spokesperson said: “People are aware that it is happening and we are getting a lot of questions about the deadline.

“Companies can’t just ignore it, they have to act.”

Inenco CCO David Cockshott says the announcement does not do enough to alleviate the pressure faced by the industry, whilst also acknowledging the Environment Agency has the right intentions.

He said: “Given the extension is only until 29th January, with Christmas shutdowns and busy trading periods for those not closed, it is in effect only a 4 week extension. This is insufficient to address the backlog of companies still requiring an audit.

“At present only around 370 businesses are fully ESOS compliant and Lead Assessors are being asked to take on work that they cannot deliver.

“I simply cannot see how such a short extension on the enforcement of compliance assessments will enable the sheer volume of businesses whose audits remain outstanding to complete on time.”

ESOS is the government's flagship energy efficiency scheme, which requires businesses with more than 250 employees, £40m in annual turnover or a balance sheet of more than £34m to complete an officially approved energy efficiency audit every four years, with the first due by 5 December.