(ESOS) Energy Savings Opportunity Scheme.
Article 8 of the EU Energy Efficiency Directive (‘the Directive’) requires all Member States to introduce a programme of regular energy audits for ‘large enterprises’. ESOS is the governments’ method of implementing this requirement. The government believes this programme offers a significant opportunity for the UK to drive the take-up of cost-effective energy efficiency measures.
Who is included?
A ‘large organisation’ who is defined in the consultation as being an organisation that has:
- more than 250 employees; OR
- annual turnover greater than 50 million Euros;
- AND annual balance sheet total exceeding 43 million Euros
Why is this important?
The guiding principles for implementing ESOS are:
- ensure that ESOS provides high quality and well-targeted advice to large enterprises on cost-effective energy efficiency opportunities, driving significant net cost savings
- ensure a proportionate approach to implementation is taken, minimising the administrative burdens placed on UK businesses
- ensure ESOS fits with and is complementary to the landscape of existing energy efficiency and climate change policy instruments
- ensure our implementation of Article 8 avoids ‘gold plating’ that disadvantages UK businesses relative to their European competitors.
The Government’s Energy Efficiency Strategy set out the substantial, untapped and cost effective energy efficiency potential which exists in the UK economy. Through the right action we can unlock more of this cost-effective potential and help to reduce energy bills at a time of increasing gas and electricity prices, balance the UK’s future energy demand and supply needs, and cut our carbon emissions. The current economic climate makes it more important than ever for individuals, businesses and the country to realise the benefits available from reducing energy demand. Doing so will help support productivity of UK firms and improve the UK’s international competitiveness.
How is an ESOS audit conducted:
To comply with the regulations, a ‘Lead Energy Assessor’ will need to conduct an ESOS Assessment to:
- Measure your total energy consumption for buildings, industrial processes and transport
- Identify areas of significant energy consumption, accounting for at least 90% of your total energy consumption
- Identify cost-effective energy efficiency recommendations for areas of significant energy consumption
- Report compliance to the Environment Agency
Who can conduct the assessments?
- Accredited lead assessors
- Accreditations schemes are currently being established
- The type of body that is expected to act as an accreditation body is CIBSE, the Energy Institute, the UK Association of Energy Engineers or independent Accredited lead assessors
What do I have to do now?
Establish if you ‘are in or out’. We recognise that this is complicated process and we can offer our consultancy services to guide you through the assessment process. If you are deemed eligible our partner lead assessor will be able to arrange your ESOS assessment.
What if I decide not to take part?
Participation is not negotiable; audits must be completed and are now overdue. Large fines are in place for those who don’t comply with the legislation. £50,000 for failure to undertake an ESOS assessment and £500 per day thereafter.
Need advice about ESOS?
The ESOS regulation offers UK companies great opportunities to maximise energy saving opportunities and harness an effective energy reduction plan. As business energy consultants Power Direct Ltd are well placed to assist you through the process. We can offer you a individual consultation to discuss your requirements.
To register your interest in an ESOS consultation, please complete the form on the right.