The Energy Savings Opportunity Scheme

All you need to know about the Government’s Energy Savings Opportunity Scheme and how it may effect your business.

In simple terms the Energy Savings Opportunity Scheme (ESOS) regulations 2014 under the Article 8 of EU Energy Efficiency Directive – has been mandated by the Government to encourage large organisations to save energy and money. It will affect all European operations if the organisation is considered to be a large undertaking.

A company is classed as ‘large undertaking’ if it is an organisation that carries out a trade or business which either employs at least 250 people, or alternatively employs less than 250 people but has an annual turnover in excess of €50 million (£38,937,777) and an annual balance sheet total in excess of €43 million (£33,486,489).

This scheme requires large organisations to undertake regular assessments to identify cost effective energy saving measures on supplies to buildings, industrial processes and transport. An organisation qualifies if, on 31st December 2014 it meets the ESOS above definition of a large undertaking. You also are liable to comply with ESOS if your organisation is part of a corporate group that qualifies as a large undertaking.

The scheme is estimated to lead to £1.6bn net benefits to the UK, with the majority of these being directly felt by businesses as a result of energy savings. ESOS energy audits have the potential to increase your businesses profitability and competitiveness by identifying cost-effective savings which, if implemented, will improve energy efficiency.  Saving energy is good for the UK as a whole – increasing energy security and helping ensure we all play our part in tackling climate change.

ESOS is a mandatory energy assessment scheme for organisations in the UK that meet the qualification criteria. The Environment Agency is the UK Scheme Administrator. Organisations which qualify for ESOS must carry out ESOS assessments every 4 years. These assessments are audits of the energy used by their buildings, industrial processes and transport to identify cost-effective energy saving measures.

Organisations must notify the Environment Agency by a set deadline that they have complied with their ESOS obligations.  By 5th December 2015 qualifying organisations must carry out their ESOS assessment and notify the Environment Agency. Participants must then carry out an ESOS assessment in each subsequent 4-year compliance period, ending on 5th December 2019, 2023 and so on. Under ESOS, energy consumption includes the consumption of all forms of energy products, combustible fuels, heat, renewable energy, electricity, or any other form of energy.

What if you do not comply?

  • Failure to notify the Scheme Administrator of compliance by 5th December 2015 and/or failure to provide basic details (i.e. company structure) £5,000 and an additional £500 per day until notification is completed subject to a maximum of 80 days.
  • Failure to maintain adequate records to demonstrate compliance with ESOS (i.e. evidence pack) £5,000 and/or cost of the compliance body undertaking sufficient auditing activity.
  • Failure to undertake an assessment by 5th December 2015 – £50,000 and/or £500 per day until assessment carried out subject to a maximum of 80 days.
  • Failure to comply with an enforcement or penalty notice £5,000 and/or £500 per day subject to a maximum of 80 days.
  • Making false or misleading statements there is a fine of £50,000.
  • All of the above incur publication of non-compliance.

How can we help your organisation?

We can help your organisation be compliant with ESOS within the timescales laid down by the legislation. Optimum have accredited ESES Lead Assessors in our business who are fully qualified to carry out audit identified facilities within your enterprise. We can then produce a full energy assessment with potential energy saving opportunities for your business on your behalf.

In short we can help deliver the following:

  • ESOS legislation compliance by 5th December 2015.
  • Identify and carry out ESOS audits at facilities.
  • Produce ESOS reports following audits, signed off by an ESOS Lead Assessor.
  • Produce a business case for each of the identified energy saving opportunity.
  • Rank opportunities by payback, ROI, value etc.
  • Scope and deliver any recommendations you wish to take advantage of and deliver as a roadmap of savings going forward.

To find out more about how we can help you through the ESOS process and legislation please contact us on ESOS@weareoptimum.com