NORTHERN RAIL’S TICKET TO ESOS COMPLIANCEWith the Energy Savings Opportunity Scheme (ESOS) now in effect, organisations that qualify must complete regular energy audits. Northern Rail is using its ISO 50001 certification as a route to compliance.

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The Energy Savings Opportunity Scheme (ESOS) addresses the requirements laid out in Article 8 of the European Union (EU) Energy Efficiency Directive. Large enterprises with either 250 or more staff, an annual turnover of at least £42m or an annual balance sheet of at least £36m or more, must complete regular energy audits. The first must be undertaken by 5th December 2015, and then at least every four years.

Cause and effectThe government hopes that ESOS will drive the take-up of energy efficiency measures amongst businesses, enhancing their competitiveness and contributing to the wider growth agenda.

Explaining how it works, Martin Hockaday, NQA’s environmental sector manager, says, ‘The process will be based around a review of the energy efficiency of the organisation, including energy use per employee, energy use over time within key buildings, industrial operations, and key transport activities. The review will then provide clear information on potential savings and how to go about achieving them.’

Train to gainServing a population of nearly 15 million, Northern Rail is one of the companies affected by the introduction of ESOS. The company has 4,900 employees and provides nearly 2,500 local and regional train services every weekday, making it the largest train operator in the UK.

Within some organisations ESOS has been cause for concern. However, this isn’t the case for Gareth Williams, Northern Rail’s energy and environment manager, who says, ‘Unlike other pieces of legislation, such as the CRC Energy Efficiency Scheme, ESOS will have no financial or operational impact on us at all. This is due to the fact that a number of alternative routes to ESOS compliance were made available and one of these, which we have, is ISO 50001 certification through NQA – a United Kingdom Accreditation Service (UKAS) approved body.’

Williams’ reaction to ESOS will be in stark contrast to those that do not have an ISO 50001 certified energy management system (EnMS) in place, as although the government has said it will try to minimise the administrative burdens placed on businesses, implementing any measures will require significant time and money. He estimates that ESOS compliance would have cost Northern Rail over £25,000 if it didn’t have ISO 50001 certification.

Northern Rail also boasts certification to the ISO 14001 environmental management systems (EMS) standard and has integrated the two systems together as much as possible. Williams comments, ‘Not only is this important in terms of saving time, money and effort, it means that we can maintain one system that runs throughout the organisation, providing a common framework. I would advise any company that already has ISO 14001 and which must comply with ESOS to get ISO 50001.’

Terms and conditionsAlthough the financial advantages of gaining ESOS compliance through ISO 50001 are clear, there’s also significant value for companies in being able to do things ‘on their own terms’.

Furthermore, meeting the rigorous criteria of an internationally recognised standard has additional business benefits.

‘We can focus on the initiatives 50001 certification drives,’ comments Williams. ‘For example, as part of our process of continual improvement, we have devised initiatives such as our Traction Fuel Responsible Driving Programme, which includes using natural gradients and coasting where possible, smooth acceleration and slowing down well before reaching a red light to save fuel. This alone has made significant savings.’

The other savings it has achieved are just as impressive. On the non-traction side of its operation, which includes everything not related to the trains themselves, Northern Rail has made a 2 per cent reduction in energy consumption on a back drop of installation of more equipment at stations to improve the passenger experience which include, lifts, customer information screens, cctv and ticket machines.

All aboardFor any EnMS to be a success, stakeholder engagement is vital – at all levels of an organisation.

Gaining ESOS compliance through ISO 50001 means that top management must understand the organisation’s risks, opportunities and expectations, along with ensuring that its energy management policy and objectives are compatible with its overall strategic direction. Equally, personnel at this level have to be involved with the integration of the EnMS into an organisation’s business processes, by ensuring adequate resource allocation.

This is something that Williams welcomes, as it puts the issue at the top of the corporate agenda. He opines, ‘Energy management is no longer just a “nice to have” and everyone has a part to play. This process also involves encouraging employee feedback and ideas about any measures that could be introduced to improve performance. As a result, we are able to filter these suggestions up through the various management levels, and analyse and implement them whenever we can.’

Next stopAn EnMS requires continual development and this is where the value of working with NQA comes to the fore. Gareth Williams concludes, ‘We have an incredibly positive relationship and they help us push the boundaries of what’s possible, as well as being incredibly flexible in their approach. The fact that our ISO 50001 certification not only helps us save money and reduce our impact on the environment, while also making us ESOS compliant, makes it invaluable.’

Let’s TalkBook a no obligation, free advisory visit and help your company find the best route to compliance. Email info@ nqa.com today or call 08000 522 424.

CS/NR/01/SEPT14

“Energy Management is no longer a ‘nice to have’, everyone has to play a part to realise company savings sooner rather than later.”

Scan to WATCH Northern Rail’s Case study on ESOS compliance or go to www.nqa.com/esos