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Are you familiar with the Energy Savings Opportunity Scheme, or ESOS for short? If you’re a fleet manager for a company of medium size or above, now’s the time to get up to speed.
The story so far
ESOS is an Environment Agency-run energy audit initiative, created to encourage organisations to cut energy use by identifying opportunities for greater energy efficiency. December 2015 marks the first deadline for affected businesses to submit a report accounting for their total energy use over a 12-month period. Companies will be required to produce this report every four years, detailing all energy consumed by their assets and activities including, importantly to you, transport and travel.
The key details
There are two parts to completing an ESOS assessment. The first is to identify at least 90% of a company’s total energy expenditure, of which fleet costs are likely to be a substantial part. The next step is to put forward a plan that identifies opportunities for cutting energy usage, including cost estimates of implementation.
Assessments can be carried out either by an Environment Agency-accredited assessor, or by internal staff and audited by an approved assessor. Non-compliance with ESOS could result in a penalty of up to £50,000.
Does it affect you?
The scheme covers any private or not-for-profit business that:
- employs 250 or more people, or
- has fewer than 250 employees but an annual turnover above €50m (approx £40m) and a balance sheet in excess €43m (approx £34m), or
- is part of a corporate group which meets one of these criteria.
Public bodies are exempt and if your company already reports energy usage under Carbon Reporting Rules the same data can be used for your ESOS assessment.
The challenge of figuring out your fleet's fuel
Unlike your company’s other energy costs, calculating fleet energy use entails more than reading utility bills. And because private mileage is excluded from ESOS reporting, you have the added headache of separating business from private mileage.
And it’s not enough to simply know how much you’ve spent on fuel. The reporting requirements demand energy expenditure in terms of fuel volume, meaning you need to calculate how many litres your fuel spend purchased, based on the manufacturer’s mpg of the vehicles in your fleet.
Helping with ESOS compliance
It’s clear that, without adequate data, ESOS compliance comes with a considerable administrative burden. That’s where Barclaycard Fuel+, in association with The Miles Consultancy, can help.†
Our award-winning mileage audit system captures all the data you need from your fleet. Fuel consumption and pump prices are combined with mileage figures and vehicle-specific mpg stats to provide highly accurate data you can depend on.
As well as separating business from personal mileage required to comply with ESOS, this precise reporting also ensures your mileage records are compliant with HMRC VAT regulations.
Driving real energy efficiencies and cost savings
When it comes to including energy-saving ideas in your ESOS assessment, Barclaycard Fuel+ delivers on all fronts, with customers recording, on average, a 25% drop in their fleet fuel costs in the first year of implementation*. Plus the 99% UK forecourt coverage of Barclaycard Fuel+ means your drivers don’t waste fuel (and time) searching out specific filling stations**.
If your company is affected you can’t afford to ignore ESOS. The sooner you act, the sooner you can start delivering substantial savings for your organisation, as well as doing your bit for the environment.
Learn more about ESOS at gov.uk/energy-savings-opportunity-scheme-esos
And for more details on Barclaycard Fuel+ go to barclaycard.co.uk/business/fuelplus or call 0844 822 2400***
†Please note that, at present, Fuel+ is available only to organisations with a business fuel spend of more than £100,000 p.a.
*This is based on the first year business fuel savings of 24 TMC customers calculated in 2012. TMC is a trading name of The Miles Consultancy Ltd, a provider of Mileage, Fuel and Mobility Management solutions. Registered Office: TMC House, Minshull Vernon, Cheshire CW1 4RJ.
**Please note that a few small fuel retailers with a shop may be classified by their Visa processing bank as a supermarket or convenience store and your card may therefore be declined. Only an outlet classified as a fuel retailer will accept your card.
***For BT business customers, calls will cost no more than 5.5p per minute, min call charge 6p (current at December 2014). The price on non-BT phone lines may be different. Calls may be monitored and/or recorded.
Barclaycard is a trading name of Barclays Bank PLC. Barclays Bank PLC is authorised by the Prudential Regulation
Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial
Services Register Number: 122702) and subscribes to the Lending Code which is monitored and enforced by the Lending Standards Board. Registered in England No: 1026167. Registered Office: 1 Churchill Place, London E14 5HP.