The ESOS deadline of 5th December 2015 has passed. Businesses should have completed and submitted their ESOS audit by now unless they filled in an intent to comply form before the deadline. Those that have not fulfilled either requirement are now liable to pay hefty fines of up to £50,000.
However the deadline has passed and the silence from the Environment Agency is deafening. They said that they will look more favourably on businesses who state intent to comply than those who don’t and have intimated the application of the penalty scheme will be applied more leniently for engaged businesses.
So what have the Environment Agency said?
The EA’s hands are tied by being bound by EU Energy Efficiency Directive (2012/27/EU) and so while they cannot extend any deadlines formally, they can be subjective in their treatment of the penalty regime.
As a result we suspect, although no confirmation has been provided by the EA or any other body, that the intent to comply process remains valid despite passing the 5th December 2015.
We also suspect that there may not be an official announcement on this from the EA but that an ‘internal’ policy will be applied. Nevertheless it makes sense for all obligated businesses to be on the safe side and complete an intent to comply form with the EA.
So I fill in the Intent to Comply form late and I’m covered?
The intent to comply form should prevent the application of penalties for failing to submit your ESOS report by 5th December, even if your intent to comply is not received before 5th December however this is not guaranteed.
What is guaranteed, is that the worst position to be in is to have not submitted an intent to comply form at all. In failing to do this, your business has all but refused to comply or even recognise the existence of the ESOS obligation and it will be these businesses that we expect the Environment Agency to focus their penalty ire on – if for no other reason than to encourage ESOS stragglers to get moving on compliance.
The upshot is, ESOS is a bit of a mess, not helped by poor information and management from EA but the EU plays a bigger role than any UK government body and as a result, whatever the failings of the EA, the EU obligation remains. The only outstanding issue is not whether it needs to be done, but what financial penalties will be applied for those who have failed to fulfil their ITC or ESOS obligation.
What happens once I’ve submitted my Intent to Comply form?
The ITC commits your organisation to become ESOS compliant by 29th January 2016 providing you with an extension from 5th December 2015 and protecting your business from penalties as long as this new deadline is met.
What do I need to do to become compliant?
Once the ITC is in, we need to get cracking on the ESOS assessment and we’ll make it as quick and painless as possible.
Can I submit an ITC and then do nothing?
Yes, of course you can, however if the newly granted deadline of 29th January 2016 for ESOS compliance is missed then your business will be exposed to the full penalty regime.
Can I take my chances that ESOS will be cancelled because no one has bothered?
No. It is part of an EU directive and member states and their businesses are obligated to fulfil its requirements regardless of any local difficulties.
Can I take my chances and sit and wait and see what the EA say next?
Yes, however sitting and waiting will only increase the likelihood of being exposed to penalties.
How much can I be fined?
Up to £50,000 depending on how much or how little you have complied.
This is confusing, what do you recommend?
Firstly let’s just worry about the things we can influence – if you haven’t submitted your ESOS submission already then you have missed the initial deadline. That is what it is and now needs to be accepted. You can no longer influence your compliance in this area.
However, what you can influence is your willingness to co-operate by submitting your ITC to the EA as soon as possible. Again the deadline for doing this has passed, but any intent is better than no intent and we strongly recommend all our clients take this route.
Secondly, once the ITA is submitted (it takes 2 minutes) we recommend our clients put in place a route to ESOS compliance immediately.
This doesn’t have to be costly or time consuming but it does need to be timely and comprehensive, our team are here to make this as easy, painless, flexible and speedy as possible.
Being compliant late is a whole lot better than not being compliant at all and potentially a whole lot cheaper!
Can I get free advice?
Business Juice will help you to understand your ESOS requirements with no obligation to take up our services.
We are however, on hand if you need us to complete your ESOS assessment without overcharging you or causing any interruptions to your business.
For an ESOS quote or advice, give Business Juice a call on 0800 051 5492 or email esos@businessjuice.co.uk.