A number of companies have failed to comply with ESOS. This in turn has lead to an increase of legal proceedings against those companies. Seven percent of the obligated companies have failed to comply, and the EA has so far served 353 notices for those who had not met the extended compliance deadline of April 2016. Qualifying companies are UK legal entities (whether part of a larger corporation or not) considered as a large undertaking, with criteria such as more than 250 employees and a turnover of Eu 50 million at the qualifying date in 2015. In total the EA has received 6841 compliance notices. Fines for non-compliance can be significant with a maximum penalty for failing to provide an Energy Audit being £50,000 with a further £500 per day additional fine for continuing to breach, up to a maximum of 80 days.
The fines are just one aspect, and loss of reputation is also critical for some, and should be for others. However, there is a huge missed opportunity, which of course is the energy audit itself. The energy audit/assessment is a brilliant opportunity to potentially save money year on year with potentially minimal capital investment or supported via a grant. It will also help with your eco-credentials.
It is not clear what the future of ESOS is, but we are now in the second compliance wave. I hope this approach is rolled out to smaller companies as it will benefit them, and the economy in the long term.