Energy Savings Opportunity Scheme (ESOS) applies throughout the UK and is a compulsory energy assessment for large organisations.
ESOS is the UK Government’s approach to meeting Article 8 of the EU Energy Efficiency Directive which requires all Member States (including the UK) to initiate a “programme of regular energy audits for large enterprises”. The Energy audits must be started by 5 December 2015, and repeated at least every four years from the date of the previous audit.
Who Needs An ESOS?
You will need an ESOS if your organisation has the following criteria (on the qualifying date of the 31st December 2014):
- Organisations with 250 or more employees in the UK.
- Organisations with less than 250 employees and an annual turnover €50m and a balance sheet above €43m in the UK.
- Part of a corporate group that includes an undertaking, which meets the criteria (1) or (2) above.
Organisations that comply with the Public Contracts Regulations 2006 or the Public Contracts Regulations (Scotland) 2012 are exempt from ESOS.
What Is An ESOS Assessment?
The Government believes that ESOS assessments must provide the following information:
- An appraisal of the total energy used and the energy efficiency of the organisation. This would include identifying and measuring an energy intensity ratio (energy use per employee) and a consideration of any variation in energy use over time within key buildings, industrial operations, and transport activities. The appraisal needs to be “proportionate and sufficiently representative to permit the drawing of a reliable picture of overall energy performance of the organisation”
- Information on potential cost-effective energy savings opportunities savings. These savings need to be based on life cycle assessment (LCA) instead of simple payback periods (SPP).
The Road To ESOS Compliance