It’s time, phase one completed now let’s commence with phase two.
What is ESOS?
The Energy Saving Opportunity Scheme (ESOS) is an energy assessment and energy saving scheme that is compulsory for all large UK organisations and their corporate groups that meet the qualifying criteria. It was established to implement Article 8(4-6) of the EU Energy Efficiency Directive (2012/27/EU). Businesses that qualify for ESOS need to carry out an ESOS assessment every 4 years; the assessments are audits of the energy used by your organisation’s buildings, industrial processes and transport and logistics.
What is the point?
The objective behind the assessment is to identify consumption and potential consumption reduction opportunities. ESOS can be extremely beneficial, as once the audit is completed the cost-saving potential for your business becomes more explicit. By benchmarking these findings and supplying your business with information on how much of an impact it makes environmentally, you could become more environmentally conscious and sustainable overall.
Who does it apply to?
ESOS applies predominately to businesses but can also affect large enough non-profit organisations and other public sector organisations. The following thresholds define whether your business is affected by the ESOS scheme:
- Registered and/or based in the UK
- Your business employs 250 or more, or
- Your business has annual turnover more than 50 million € (around £39 million) and an annual balance sheet total of more than 43 million € (around £33,5 million), or
- Part of a corporate group that includes one or more qualifying large business within the UK.
What do I have to do?
Most businesses will be familiar with ESOS from phase one and have an understanding on how to tackle the situation. However, do not let history repeat itself as in phase one, many organisations were fined due to being fully compliant late. Other organisations might only just have met the qualifying criteria and thus have no existing processes to rely on.
You do not need to pre-register or inform the scheme administrator, the Environment Agency, that you qualify. The first time qualifying organisations must get in touch with the Environment Agency is by the deadline, 5th of December 2019.
To comply with ESOS phase 2, your business has to carry out three steps before the 5th of December 2019:
- Measure your total energy consumption.
- Conduct audits to identify cost-effective energy efficiency opportunities.
- Report compliance to your businesses national scheme administrator by the deadline.
Business can comply (in some cases) automatically where you have provided evidence stating that the business has achieved ISO 50001 certification, which is the international standard for best practice energy management.
You can reassure yourself by following these 7 steps towards ESOS compliance:
1. Appoint a Lead Assessor
as long as they are a listed member of an approved professional body (those will be formally announced on the website of the Department of Energy & Climate Change DECC), they can be an employee of yours or a third party.
2. Measure and analyse your business energy impact
in kWh or £. Make sure to base this on verifiable evidence, ideally primary data such as your metering data, stock and fuel records.
3. Keep a record of building energy information
for both electricity and gas, e.g. through automated metering.
4. Focus on those factors that make up 90% of your consumption
This is often referred to as “significant energy”.
5. Consider Base & Peak Energy Load to identify areas or times of potential waste
Savings opportunities identified here could be heating, ventilation, or lighting, for instance.
6. Include audits around refrigeration, drives, motor pumps, and your fleet.
Driver fuel performance, route planning and maintenance are common areas for improvements.
7. Record energy savings opportunities in terms of their life cycle cost
rather than simply their payback period.
If you are unsure whether you qualify or need help with the implementation of the audit, please get in touch with us!
Not sure yet? Why not also download our PDF Quick Guide?