ESOS - Energy Saving Opportunity Scheme
What is ESOS?
The Energy Savings Opportunity Scheme (ESOS) is UK legislation (based on article 8 of the EU Energy Directive) that makes energy audits mandatory for large organisations. The Environment Agency is the UK scheme administrator. The aim is to reduce EU energy consumption by 20 per cent by 2020.
Who does it affect?
Organisations with over 250 employees
OR a turnover exceeding £38,937,777 AND balance sheet assets greater than circa £33,486,489
OR is part of a corporate group where one company in that group meets either of the above qualification criteria.
Originally it was by 5th December 2015 but the deadline has been extended to 30th June 2016 to achieve an ISO 5001 certification of compliance. Regardless of when, the same applies in that every qualifying enterprise (private, not public sector) in the UK will be required, by law, to have undertaken an energy audit to comply with Article 8 and then repeat the audit at least once every four years.
What does this mean?
A recent newsletter from the Environment Agency (EA) wrote about these key measures.
- No enforcement action; provided notification is received by January 29, 2016
- 30 June 2016 deadline to achieve ISO 50001 certification as a form of compliance.
- A focus on achieving compliance using enforcement notices, serving civil penalties only in the most serious cases.
- Where an organisation's energy use is at a domestic level, no requirement for fully-compliant ESOS audits. But organisations concerned must still notify, confirming energy use falls below the domestic threshold.
- Organisations that qualify with zero energy consumption need only declare this.
- Organisations which cannot comply by 5 December 2015 must inform the agency via an online portal, detailing why they have been unable to comply and when they will notify.
What this means is, that the legal deadline for compliance hasn't changed and it does remain 5th December 2015. However, if you've missed this date and you notify the EA before January 29th then your company will not face enforcement action. And this is just one way 001 can help your business. Even if this deadline has well passed, talk to us as there could be options.
If you qualify for ESOS and your organisation is fully covered by ISO 50001, you don't need to carry out an ESOS assessment. You just need to notify the Environment Agency that you are compliant with ESOS.
If you qualify for ESOS, but your organisation is not fully covered by ISO 50001, you need to carry out an ESOS assessment. The assessment helps you work out what your organisation needs to do to comply with the ESOS regulations. It reviews total energy use from your business operations, including building energy use, transport energy use and industrial processes. You are required to calculate the amount of energy used per employee, and identify potential measures that could save energy.
What steps are involved in the assessment?
Calculate your total energy consumption
The assessment helps you work out what your organisation needs to do to comply with the ESOS regulations. It reviews total energy use from your business operations, including building energy use, transport energy use and industrial processes. You are required to calculate the amount of energy used per employee, and identify potential measures that could save energy.
Identify your key areas of significant energy consumption
This is the energy used by assets held, or activities carried out, by your organisation that account for at least 90% of your total energy consumption
Appoint a lead assessor
A lead assessor will need to be appointed to carry out and oversee or review your energy audits and overall ESOS assessment. Lead assessors can be employees or external contractors as long as they are members of an approved professional body register.
Notify the Environment Agency
When you are fully compliant submit your notification of compliance with the Environment Agency.
It is important to keep an evidence pack showing how you have complied.
How we can help
001 Limited are currently working with a number of clients to determine a suitable strategy based on their requirements to either minimise the cost of compliance or to help measure their energy usage and to leverage ESOS to further increase energy savings across their organisation. For more details, please contact us direct