The Energy Savings Opportunity Scheme (ESOS) is the UK implementation of the EU Energy Efficiency Directive (EED, Article 8). It requires all large trading entities in the UK to undertake mandatory assessments looking at energy use and energy efficiency opportunities at least once every four years. The deadline for the first compliance period is 5 December 2015. This means that before this date, organisations that meet the qualification criteria will have to achieve compliance with the regulations and notify the scheme administrators, the Environment Agency (EA).
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Who is affected?- Organisations that employ at least 250 people, or employs fewer than 250 people but has an annual turnover in excess of €50 million and annual balance sheet in excess of €43 million.
- This includes some organisations that may not recognise themselves as traditional businesses, i.e. not-for-profit bodies outside the public sector, so long as they are large enough to meet the qualifying criteria.
What to do to comply?
Most businesses will need to undertake an ESOS Assessment, to include the following:
- Measurement of total energy consumption for buildings, industrial processes and transport
- Identification of areas of significant energy consumption, that account for at least 90% of your total energy consumption
- Appoint a ‘Lead Energy Assessor’ to oversee the ESOS Assessment
- Identify cost-effective energy efficiency solutions for high consumption areas
Your ESOS assessment must be reviewed by a Board level Director and approved by a Lead Energy Assessor prior to reporting compliance to the Environment Agency.
ESOS will take account of some other energy management activities, e.g. ISO 50001, Green Deal Assessments (GDAs), Display Energy Certificates (DECs) . However, you will still require a qualified Lead Energy Assessor to confirm these activities have met the minimum standards required (e.g. including transport energy if it is 10% or more of your energy use) before you can notify the Environment Agency of your compliance.
Penalties
There are penalties for failure to comply include:-
- Failure to notify the EA of compliance - £5,000 plus £500 per working day you remain in breach
- Failure to maintain adequate records - £5,000 plus sum equivalent to compliance body costs
- Failure to conduct energy audit - £50,000 - plus £500 per working day you remain in breach
- False or misleading information - £50,000
- Supporting You - Our ESOS Services
- ESOS Awareness - Workshop based sessions for your team to understand your exposure and how ESOS fits with your other carbon reporting
and energy management programme
- ESOS Scoping - Consultant led sessions to determine the extent of sites/transport that must be included for your business situation. We'll help you work out which activities you have done that count towards compliance, what you can do yourselves and what support you will need to comply
- Energy Assessments - Full on-site assessments of your qualifying buildings/operations and also transport. Full documentation as evidence packs
for ESOS
- ISO50001 Gap analysis & Support - We can help you evaluate whether ISO50001 certification provides a viable route to ESOS compliance. Via Gap Analysis and documentation support we can support you through to external audit
The right level of support, just when you need it
- Cost effective service - we will assess just what activities/sites must be covered to reduce your cost and resource requirements.
- Fully Managed support - we provide full advise to support your declarations/submissions to the Environment Agency.
Unclear whether your organisation must comply and how? Contact us
Call +44 (0)1256 592599
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