What is ESOS?
ESOS stands for Energy Savings Opportunity Scheme. The ESOS Regulations 2014 bring into force Article 8 of the EU Energy Efficiency Directive and require all qualifying organisations in the UK to complete a mandatory energy assessment. The aim of the ESOS assessment is to measure the amount of energy used by industrial organisations and to identify cost-effective energy saving and energy procurement opportunities. Organisations that meet the qualifying criteria must carry out ESOS assessments at least once every four years. Organisations must then inform the Environment Agency that they have complied with their ESOS obligations by a set deadline. The deadline for the first compliance period has now passed, but the deadline for ESOS phase 2 is 5 December 2019. It has been advised that Brexit and any resulting policy changes, will have no effect on the ESOS regulations.
Find out if you qualify
The regulations apply to any UK organisation that meets the ESOS definition of a ‘large undertaking.’ This industrial strategy applies to any company that carries out a business or a trade, and any corporate group where at least one UK member meets the ESOS qualification criteria. Under the ESOS regulations a large undertaking is:
• Any UK company that employees over 250 people, or
• Fewer than 250 employees but an annual turnover exceeding 50 million euro (£44,845,000) and an annual balance sheet exceeding 43 million euro (£38,566,700).
Most public sector bodies do not fall under the ESOS criteria. However, there are some exceptions to this, for instance – organisations that receive public funding, such as Universities, may still qualify under the ESOS criteria. UK registered establishments of an overseas company will also need to take part in ESOS, if any other part of their corporate activities in the UK meet the ESOS qualifying criteria. If you are unsure whether you qualify for ESOS phase 2 then you can contact the Environment Agency for advice.
How much will it cost?
One of the simplest ways to comply with the regulations is to have an ESOS audit carried out by an accredited lead energy assessor. This examines the amount of energy used within an organisation and identifies energy saving measures to improve energy efficiency. The cost of an ESOS audit will vary between companies and depending on the amount of work required. The Government estimate that the cost of the audit will be quickly recovered through the application of energy efficient improvements and the resulting energy savings opportunities scheme once you have calculated your total energy expenditure.
How to complete an ESOS assessment
If your organisation qualifies, then you will need to carry out an ESOS assessment to achieve compliance. To complete your assessment, you need to do the following:
Calculate energy consumption
The first step is to calculate your total energy usage by your organisation over a 12 month period. This includes the energy used by buildings, industrial processes, and transport energy – including the use of an electric vehicle.
Identify areas of significant energy consumption
You must then identify any areas of significant energy consumption, in order to determine the areas that must be audited. These areas of significant energy consumption must be covered by an ESOS energy audit, or an alternative route to compliance. Areas of significant energy consumption must account for at least 90% of your total energy consumption.
Appoint a lead assessor
To be compliant you must appoint a lead ESOS assessor. Your ESOS lead assessors duty to undertake and oversee your energy audits and any other auditing activities – such as Green Deal Assessments and Display Energy Certificates – used to comply with ESOS. The exception to this is if your organisation has an externally-certified ISO 50001 Energy Management System in place that covers all areas of significant energy use. Lead assessors must be members of an approved professional body register.
Notify the Environment Agency
You must then send a notification to the Environment Agency to demonstrate that you have met your ESOS obligations.
Keep records
Don’t forget that you must keep records of how you have complied with ESOS in an evidence pack.
Submit ESOS notification of compliance
You must demonstrate that you have met your ESOS obligations by submitting your ESOS notification of compliance to the Environment Agency via the online portal. The notification should include details about your organisation and how it has complied. You can complete and submit your notification via the GOV.UK website.
- Identify Worst Areas
- Improve Energy Efficiency
- Save Money
Benefits of ESOS compliance
Being ESOS compliant has a number of benefits. Firstly, it means that you are complying with Government regulations, so you don’t need to worry about fines. Secondly, the energy assessment will provide you with a detailed analysis of your organisation’s energy consumption. This will allow you to identify energy efficiency opportunities for improvement, resulting in cost savings for your business.
What if I don’t comply?
If you do not comply with ESOS regulations and meet your obligations under the scheme, then the Environment Agency will issue your organisation a non-compliance enforcement notice, alongside potential financial penalties. Fines can reach £45,000 for businesses that do not respond to enforcement notices. There are also a number of other potential ESOS fines for things such as – failure to maintain records and failure to notify.
How can EPC For You help?
We can help you comply with the ESOS regulations and take advantage of the cost savings to be gained from energy efficiency. Our approved assessors are available for site visits to conduct an onsite survey as part of your ESOS assessment, and gather data to be signed off by an ESOS lead assessor, which we will arrange. This will ensure that you meet the requirements of the ESOS scheme.
- Government Compliant
- No Worrying About Fines
- Improvement Recommendations
- Reduced Business Energy Costs
