Energy Savings Opportunity Scheme (ESOS)
To avoid a fine of up to £50,000, all eligible UK organisations must undertake mandatory energy usage assessments as part of the new Energy Savings Opportunity Scheme (ESOS) regulations – make sure you’re not caught out!
Our approved ESOS assessors deploy bespoke energy management software to identify energy saving opportunities for your business – helping you to meet your legislative requirements and minimise your company’s energy expenditure.
The Energy Savings Opportunity Scheme (ESOS) is a new mandatory energy assessment and energy reduction scheme for all organisations in the UK that meet the qualifying criteria (see details below).
In summary, ESOS requires qualifying organisations to carry out energy audits to measure their total energy consumption and to identify cost-effective energy saving opportunities. ESOS assessments audit the energy used by buildings, industrial processes and transport.
ESOS compliance came into force on 5th December 2015. Non-compliant organisations will accrue financial penalties and could face fines of up to £50,000 for failing to undertake an energy audit. All qualifying organisations must have carried out their ESOS assessment and notified the Environment Agency. If your organisation has not yet carried out an ESOS assessment, get in touch with us today and we'll help you to manage the process.
At a Glance - The ESOS Process
Optimum’s ESOS Support Service
Optimum Energy Services provides a full ESOS support service to help you ensure your organisation is fully compliant. We can support your business by:
- Providing expertise – our accredited Lead Assessors manage the compliance process on your behalf
- Assist in avoiding costly enforcement penalties
- Manage and maintain compliance
- Deliver real energy savings (typically 10 – 25%) through preparation of targeted energy auditing strategies
- Turn ESOS from an administrative burden into a golden opportunity to reduce the impact of energy consumption on your bottom line
Optimum can complete a full liability assessment in order to ascertain: the extent of your company’s liabilities under ESOS (i.e. exposure, cost and resource); what assets will require auditing; and whether alternative routes to compliance (such as ISO 50001) would be more suitable.
Where required, we combine our compliance support with our energy procurement and management services to deliver a comprehensive energy strategy for our clients, helping to improve energy efficiency and minimise energy expenditure.
For more detailed information regarding the ESOS scheme, click the headings below...
ESOS is an Environment Agency-run energy audit initiative created to encourage organisations to cut energy use by identifying opportunities for greater energy efficiency. It is a UK government response following an EU Energy Efficiency Directive aiming to meet 20% energy efficiency improvements by 2020.
December 2015 marked the first deadline for qualifying companies to submit a report accounting for their total energy usage over a 12-month period. This report will subsequently be required every four years, detailing all energy consumed by assets and activities.
There are two main parts to completing an ESOS assessment:
- - Identify at least 90% of a company’s total energy expenditure
- - Submit a plan that identifies opportunities for cutting energy usage, including implementation cost
Assessments can be carried out either by an Environment-Agency-accredited assessor, or by internal staff and audited by an approved assessor.
Optimum’s accredited Lead Assessors and energy experts can guide you through the entire process, ensuring your organisation is fully compliant while also identifying areas in which significant savings can be achieved.
ESOS Qualification Criteria
The ESOS scheme applies to all private and not-for-profit organisations classified as ‘large undertakings’ and their corporate groups. Any UK company is classed as a ‘large undertaking’ if it:
- - Employs 250 or more people
- - OR has an annual turnover in excess of €50 million and an annual balance sheet in excess of €43 million
Any overseas company with a UK registered establishment which has 250 or more UK employees (paying income tax in the UK).
Corporate groups qualify if at least one UK group member meets the ESOS definition of a large undertaking. Therefore, all members of a corporate group must comply even if they are not all individually classed as large undertakings.
Visit the Gov.UK website for full details of the ESOS qualifying criteria.
There are few exemptions to the ESOS legislation; however, if your organisation is fully covered by ISO 50001, you don’t need to carry out an ESOS assessment (although you are required to notify the Environment Agency that you are compliant with ESOS).
Read our ISO 50001 section for more information regarding the energy management system standard and how your organisation can become ISO 50001 certified.
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