Through the Making Policy Clear Series, Acclaro Advisory informs clients of policy and regulatory changes around energy, environmental and social issues. Series 1 is focused on the energy and carbon regulatory schemes which impact business energy cost and reporting responsibilities. Now let’s take a look at the Energy Savings Opportunity Scheme (ESOS).
For a detailed breakdown on the full extent of the impact on your organisation, steps to comply and where Acclaro’s expertise can support. Contact us now to arrange a consultation.
What is the Energy Savings Opportunity Scheme (ESOS)?
ESOS is a mandatory energy assessment and energy savings opportunity identification scheme for large enterprises operating in the UK. It aims to help organisations to increase energy efficiency and reduce energy cost by identifying cost-effective measures to improve business energy performance. Ultimately lowering carbon emissions.
This scheme was put in place as a response to European Union law which required all EU states to transpose and implement Article 8 (4 to 6) of the EU Energy Efficiency Directive (2012/27/EU) into regulation suited to each country. This has been transposed in various forms across the EU member states with key elements remaining similar in each country. The ESOS Regulation 2014 gave effect to the scheme with the first compliance (Phase 1) which ended on 5 December 2015.
We are now in the second compliance period (Phase 2) which will last until 5 December 2019. Compliance with the scheme runs every four years.
|Phase||Qualification Date||Four Year Compliance Period||Compliance Deadline|
|1||31 December 2014||From 17 July 2014 – 5 December 2015||5 December 2015|
|2||31 December 2018||6 December 2015 – 5 December 2019||5 December 2019|
|3||31 December 2022||6 December 2019 – 5 December 2023||5 December 2023|
|4||31 December 2026||6 December 2023 – 5 December 2027||5 December 2027|
Will ESOS affect me?
All large undertaking operating in the UK (business, not-for-profit, university etc.) except Public Sector undertakings, which on 31 December 2018 meet either one of the criteria below:
* This includes an overseas (non-UK registered) organisation with a UK registered establishment meeting either Criteria 1 or 2. Here, the only UK operating establishments need to comply.
N.B. Bank of England rates applied for qualification period of ESOS Phase 2.
We understand that organisational structure is not always this clear. If you are unsure of where your entity fits, or you are unsure if it meets the requirement to comply please get in touch for clarity.
How will the Energy Savings Opportunity Scheme (ESOS) Affect Me?
- ESOS runs over four-year phases; Phase 1 ended on 5th December 2015 and Phase 2 will end on 5th December 2019.
- Organisations must assess the total energy use across the business. This must cover a full 12-month period that includes 31st December 2018.
- Non-compliance can result in financial penalty up to £90,000 and reputational damage.
- Compliance can provide a series of benefits to the organisation which include but are not limited to; Enhanced understanding of energy use across the organisation.
Enhanced understanding of the parts of the business which consumes the most energy and carries the highest energy cost.
Uncover and highlight deficiencies in data and information measurement and monitoring processes.
Identify simple solutions to improving energy efficiency, such as behaviour change and engagement.
Identify cost savings and activities to lower carbon emissions.
How Do I Comply?
1. Assess the total 12-month energy use across the organisation.
For example, Energy used in your buildings, industrial processes and for business-related transportation (company travel via cars, equipment/product transport via trucks, etc.) All assets/activities must be accounted for.
2. Identify areas and sites of significant energy use.
3. Choose your route to compliance most suitable to business goals.
4. Appoint your ESOS Lead Assessor, who is qualified to review your compliance route and reports.
5. Evidence opportunity for energy efficient measures in areas or sites of significant energy use and have the reports signed by the ESOS Lead Assessor and company Director.
6. Notify compliance to the administrator, the Environmental Agency.
How Acclaro Can Help?
The Acclaro Energy Programme is an end-to-end energy management package that helps your business to get to grips with its energy consumption from all angles. Our programme helps you adapt and address responsibilities of energy efficiency as a business, whether cultural, technical or financial.
At Acclaro, we possess vast experience in ESOS compliance, energy efficiency and reporting with a variety of clients. Our Energy Team assists clients through expert advice and detailed energy audits, providing opportunity for further energy reduction when in-house teams can no longer identify.
The final countdown to ESOS will soon begin, so get in contact with us now. Our experienced team help you through compliance and provide the best approach to fit with your organisation’s goals and aspirations.
NB This Blog was updated on 19th June 2019