Read on as we discuss the costs involved and how they could pay dividends over time.
The first thing to note is that the ESOS audit itself doesn’t cost anything per se. It’s a set of obligations that you have to fulfil internally (or with the help of an external contractor) and there’s no fee to submit your notification of compliance to the Environment Agency.
While there’s no price to pay for any of the steps involved, there are indirect costs when fulfilling your obligations…
If you handle ESOS internally, you’ll need to dedicate a significant amount of staff time to the project – especially that of your lead assessor. As any business owner or site manager knows, time is money. Because it’s impractical to have a member of staff solely dedicated to ESOS (it only happens once every four years, after all) you can expect it to be a pretty tricky and time-consuming task.
The other option is to hire an external ESOS contractor. Clearly this comes with its own cost, but it’s offset by the amount of time and hassle you save in-house. Because they know the process like the back of their hand, professional ESOS assessors will get things done quickly and efficiently – not to mention identifying all the best areas for improvement.
Then there’s the cost of implementing changes. Whether it’s installing LED lighting or upgrading your heating system, you can expect a number of recommendations to arise from your ESOS audit with a view to saving you energy. While some – like turning down the thermostat or switching off unnecessary lights – will cost little to nothing, others will have a bigger financial impact.
It will come as no surprise that energy-efficient changes save you money over time. Using less energy reduces your bills – and there’s never been a better time to do that, with energy prices so high!
But you might be shocked just how much it could save you. According to a report by the Department of Energy and Climate Change (DECC), investments in energy efficiency have a typical return of 48%, compared to just 12% for other business investments.
Another way it’s framed in their report is “the cost of inaction”. Rather than an investment with returns, you have a choice between making the changes or losing money. Every day you don’t implement changes will cost you, for example, £100. Within a matter of months, it might have been cheaper to invest in the first place.
When it comes to ESOS audit costs, you have two options. Cut back to minimise the upfront costs and treat the whole thing as a box-ticking exercise. Or make the most of the opportunity, invest in quality and reap the rewards of lower energy bills. The first option has lower costs with no return, while the second approach pays for itself (and more).
At Volta Compliance, we’re passionate about helping businesses reduce their energy output with expert ESOS auditing services. If you’d like to talk more about our ESOS services and how we can help your organisation, don’t hesitate to call 0113 397 1361 or email [email protected].