ESOS Compliance Guidance

ESOS Compliance Guidance

What is ESOS?

ESOS stands for The Energy Savings Opportunity Scheme. It is an energy assessment and energy saving scheme.

ESOS has come about by the UK government in response to the requirements of the EU’s Energy Efficiency Directive (EED)

It is believed that an estimated £1.6bn net benefits to the UK will be generated by the scheme, with businesses being the majority directly benefiting as a consequence of the energy savings.

Who is ESOS for?

If your organisation qualifies as a large undertaking on the qualification date (31st December 2014) you must take part in ESOS

A large undertaking is any UK undertaking that meets either one or both of the following criteria:

  • It employs 250 or more people
  • It has an  annual turnover in excess of 50 million euro (£38,937,777), and an annual balance sheet total in excess of 43 million euro (£33, 486,489)

You must also take part in ESOS if your undertaking is part of a corporate group which includes another UK undertaking that meets either of this criteria

Where a corporate group partakes in ESOS, it will be necessary for the highest UK undertaking to take on the responsibility of ensuring the group as a whole complies.

In the instance that organisations are close to the threshold above or dip above and below, it is considered that to be relevant, the organisation over the threshold for two consecutive years.

Examples of undertakings that qualify for ESOS:

Limited companies

Public companies

Trusts

Partnerships

Private equity companies or limited liability partnerships

Not-for-profit bodies (note that larger charities will be a corporate body as such are considered to be an undertaking)

Universities which get more than half their funding from private sources

Routes to compliance

Hold a certified ISO 50001 energy management system which covers the energy use of the whole company

This might seem an appealing option to some customers, particularly if they already hold ISO 14001. Certification has to be in place before the compliance deadline of 5th December 2015, and because of this it is not likely certification bodies will have the time or resource to deliver this if their clients is yet to start to implement the system

If an organisation has a certified 50001 EnMS but doesn’t cover all of the organisations energy uses, then further compliance options would need to be followed to ensure compliance with ESOS

Notification must be made to the EA by the deadline 5th December 2015

Follow the energy assessment route:

Measure your total energy consumption

You must measure your total energy consumption across your buildings, transport and industrial activities

Carry out energy audits to identify cost-effective energy efficiency recommendations

You must ensure that at least 90% of your total energy consumption is subject to an ESOS compliant energy audit, a Display Energy Certificate, Green Deal Assessment.

Your ESOS assessment must be conducted or reviewed by a Lead Assessor (who may be an in-house expert or external consultant

Compliance needs to be reported to the Environment Agency (as the scheme administrator):

By 5th December 2015 the Environment Agency must be notified that you have complied with the scheme. You must ensure that your ESOS Assessment has been reviewed by a Board-level Director and approved by a Lead Assessor beforehand.

ESOS Timeline

Deadlines for compliance

Qualification is based on the status of an organisation on 31 December 2014, and every four years after that for each subsequent compliance period.

If an organisation qualifies, you must participate in ESOS and notify compliance to the Environment Agency by the last date of each compliance period

Possible fines for non-compliance

 ESOS Possible Fines

To find out more:

https://www.gov.uk/energy-savings-opportunity-scheme-esos

 

 

 

Posted on: 09/04/2015 By: Dr Paul Stevens   Categories: Environmental, Sustainability, Energy

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