What is the ESOS?

The Energy Savings Opportunity Scheme (ESOS) is now a mandatory requirement in the UK, requiring all non-SME’s to undertake regular energy audits. If you employ more than 250 employees, or have a turnover more than €50m it is likely that you will need to undertake an ESOS Assessment.

Is the ESOS relevant to me?

You are likely to be in scope of ESOS if, on the qualification date (31 December 2014 for the first phase of ESOS), you are:

  1. An undertaking which has 250 or more employees
  2. An undertaking which has fewer than 250 employees, but has an annual turnover exceeding €50m (1) and a balance sheet exceeding €43m (2)
  3. Part of a corporate group which includes an undertaking which meets criteria (1) or (2) above.

Organisations that are required to comply with the Public Contracts Regulations 2006 or the Public Contracts Regulations (Scotland) 2012 are exempt from the scheme.

 

What do I need to do to comply?

ESOS Assessment requires participants to do three things:

  1. Measure your total energy consumption.  You must measure your total energy consumption across your buildings, transport and industrial
    activities.
  2. Conduct energy audits to identify cost-effective energy efficiency recommendations.  You must ensure that at least 90% of your total energy consumption is subject to an ESOS compliant energy audit, a Display Energy Certificate, a Green Deal Assessment or a certified ISO 50001 Energy Management System during each phase of the scheme.   For the first phase of the scheme, you can use any energy auditing activity dating back to December 2011 to support compliance (for example, the Carbon Trust Standard) provided that it meets the minimum standards required of ESOS Energy Audits.
    Unless your total energy consumption is covered by a certified ISO 50001 Energy Management System, you must ensure that your ESOS Assessment is conducted or reviewed by a qualified Lead Assessor (the lead assessor may be an in-house expert or external consultant).
  3. Report compliance to the Environment Agency (as the scheme administrator). By 5 December 2015, you must notify the Environment Agency (as the scheme administrator) that you have complied with the scheme.   Prior to notifying the Environment Agency, you must ensure that your ESOS Assessment has
    been reviewed by a Board-level Director and approved by a Lead Assessor.

Participants are not required to implement energy efficiency recommendations identified by their ESOS Assessments. However, they will only achieve the financial benefits that arise from avoiding energy waste if they do implement cost-effective recommendations identified.

Below is a link to the full ESOS guide, as provided by The Department of Energy and Climate Change.  In it is detailed;

  • An overview of ESOS
  • Guidance on determining if you are in scope of ESOS
  • How to conduct your ESOS Assessment,
  • Measuring your total energy consumption
  • Identifying areas of significant energy consumption
  • Lead Assessors
  • Ways you can comply with the scheme
  • The minimum requirements of ESOS Energy Audits
  • Guidance in relation to auditing company transport activities
  • How to comply if you are in scope of the scheme in relation to
  • Assets held in trust
  • How to report your compliance
  • Advice on implementing audit recommendations
  • Information on penalties, enforcement and appeals
  • Potential ways to comply with ESOS more easily if you are in scope of other policies

View the full Energy Savings Opportunity Scheme (ESOS) document.