Guide to ESOS

Energy Saving Opportunities Scheme (ESOS)

What is ESOS?

ESOS is a mandatory scheme that will apply to upto 10,000 of the UK’s largest businesses. DECC formally announced ESOS in June 2014 and its introduction will ensure that the UK complies with Article 8 of the EU Energy Efficiency Directive.

Under ESOS, all eligible businesses must complete a mandatory energy audit, signed off at board level, by December 2015. Those that fail to comply will face fines of at least £45,000.

All businesses must assess their qualification status by December 2014. Those that qualify will need to submit ESOS audits and paperwork by December 2015. Audits will then have to take place every four years from 2015 onward.

Who does it apply to?

Britain’s biggest companies will be required to comply with ESOS. The criterion affects businesses which:

  • Have more than 250 employees

  • Have fewer than 250 employees, but has:

o    an annual turnover exceeding €50m and

o    a balance sheet exceeding €43m for year ending December 2014.

  • Are part of a corporate group.

Public bodies are not included in the scope of ESOS; however some universities will be included within the scope of ESOS depending on how they are funded.

What does it involve?

All qualifying businesses will have to complete an ESOS assessment by December 2015.

Essentially this involves looking at how your company uses energy across it operations. Working with a qualified auditor you must assess how energy is used in:

  • Buildings

  • Transport

  • Industrial Operations

As part of the ESOS assessment you will be required to:

  • Carry out a review of your energy data.

  • Conduct site surveys to identify cost effective energy saving opportunities.

  • Compile a report with recommendations on how to save energy.

  • Submit a formal notification to the EA (scheme administrator) confirming the requirements have been met.

Whilst not a requirement of the scheme, you may wish to implement some of the energy saving measures recommended by your Lead Auditor to significantly reduce consumption.

How to comply with ESOS

There are a number of options to demonstrate compliance with ESOS, these are:

  • ESOS energy audits;

  • ISO 50001 certified Energy Management System;

  • Display Energy Certificates (DECs)

  • The Carbon Trust Standard Accreditation

  • Green Deal Assessments

To know whether you qualify and what to do next, contact us at Strategic Energy Consulting to arrange an initial consultation.

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