In March 2019, Inenco partnered with The Energyst to carry out a ‘pulse check’ of energy professionals to find out whether businesses are prepared for SECR and ESOS. Now the results are in, and the report we’ve created on the findings contains some interesting insights into the challenges and opportunities reporting schemes create for many businesses.
Here are three key takeaways from the report…
Businesses are missing out on efficiency opportunities
Alongside our audit analysis, we also spoke to energy managers to explore their attitudes towards and readiness for ESOS and SECR.
Just 39% of the organisations we spoke to have acted on the energy saving recommendations that they identified in their ESOS Phase 1 report, which means that many are missing out on potential savings. Many said that they are yet to implement their recommendations because they either didn’t have the budget to do so or because it wasn’t seen as a priority.
So, while our research shows that organisations could make substantial savings through energy efficiency, they must act on these recommendations if they want to realise these savings. This may be why 61% of those we spoke to didn’t think ESOS Phase 1 was worthwhile.
Compliance comes with a range of challenges
The Government introduced the simplified SECR scheme in response to complaints from businesses that the previous CRC scheme was too complex. However, it seems that for many organisations, there are still a number of challenges involved in complying with their energy reporting obligations.
Accessing the relevant data was cited as the biggest obstacle when compiling energy reports, with over a third (34%) of respondents saying they’d experienced this issue. Other common issues experienced by businesses included a lack of support from the board, along with a lack of time and resources to dedicate to compliance.
Overall, the pulse check identified muted enthusiasm for ESOS, which some respondents stated they see it as a ‘tick box exercise’.
There are significant savings to be made
During ESOS Phase 1, Inenco helped 320 businesses to achieve ESOS compliance. We analysed the audits we carried out in order to gain an insight into the energy savings available to businesses and identified the key areas where savings can be made.
Organisations across all of the sectors we engaged with (manufacturing, retail & leisure and business services) stand to make savings to their bottom line by implementing their ESOS recommendations. Among the 320 businesses we worked with in Phase 1, we identified average kWh savings of 13% per organisation, and potential total energy cost savings of £20m.
Despite the cost and carbon savings available, however, 54% of businesses have not yet commenced their audits for Phase 2. These businesses are not only missing out on the chance to deliver savings, they’re also risking non-compliance as the Phase 2 deadline is just eight months away (5th December 2019).
Is your business behind on compliance?
Clearly, businesses are facing some real challenges when it comes to energy reporting, so we’ve come up with some key recommendations to take the stress out of compliance – you’ll find them all in the full report.
At Inenco, we know that energy reporting can be time-consuming and complex, which is why we’re encouraging businesses to seek external support with compliance. We’ve completed over 1,440 site surveys and identified 223,199 tonnes worth of carbon savings for our customers, so we’re experienced in taking the hassle out of energy compliance.
Find out how we can help your business to make the most of your energy reporting by calling us on 08451 463626 or email firstname.lastname@example.org.