ESOS – What is it?

Every month we cover hot topics affecting the energy market, including what actions you can and need to take to be more energy efficient.

This month, we’re taking a look at ESOS (the Energy Savings Opportunity Scheme), how this affects your business and the actions you need to take before December 2019 for your enterprise.

ESOS – What is it?

ESOS is the UK’s acknowledgment to Article 8 of the European Commission’s Energy Efficiency Directive. It means that large organisations and businesses are required to cut carbon emissions, to survey their energy usage and identify energy savings where possible This will affect thousands of businesses; indeed, many businesses have already completed the first phase.

Broadly speaking the companies that will need to undertake this process will be those that employ 250 or more people or have an annual turnover in excess of 50 million euros and a balance sheet in excess of 43 million euros.

What will need to be done?

So now you know the key consideration is that ESOS requires all large companies to review their energy consumption, and this is no easy task.  All businesses will be expected to conduct an energy audit once every four years and it should be carried out by an approved ESOS Lead Assessor.

These energy audits will estimate the total energy consumption including those used in buildings, industrial processes, and transport. Through this process, there should be the positive outcome of the identification of cost-effective energy saving opportunities. The audit must be signed off by a board-level director before being submitted to the Environment Agency.

When will it need to be done?

For those who qualified under the first phase you should have completed the process by the 5th December 2015 (if you haven’t contact us and we can tell you what you need to do. For businesses that come under the second phase you need to be compliant by 5th December 2019; so, you need to start looking at this now.

Phase Compliance End Date
ESOS Phase 1 5th December 2015
Please contact us today if you missed this End Date and we can advise you on what you need to do.
ESOS Phase 2 5th December, 2019
Please contact us today if you haven’t begun the assessment process – we can help.

How should it be done?

With this new awareness, you can see whether you can reduce your energy consumption, making savings through that reduction or through reviewing your supplier contract. Additionally, many companies, as well as their shareholders and clients, know having a Corporate & Social Responsibility strategy in place is essential. Responsible energy consumption is one of the core pillars of such a strategy.

So contact us today and we can advise you on what you are required to do, what that entails and how to make it a positive process for your company to go through.

ISO 50001

I’m sure you won’t be surprised to hear that there is more than one way to meet your ESOS requirements and that alternative is the imaginatively titled ISO 50001; in plainer language it is the international standard for energy management systems. This standard helps organisations to continually reduce their energy use, their energy costs and greenhouse emissions. It sounds very familiar doesn’t it?

Broadly speaking it provides the structure and method needed to achieve this standard; the method is set out in the diagram below:

If your energy management system is certified to meet this standard it will be compliant with ESOS and importantly will be beneficial to the business.

Meeting this standard is one of the areas that we have been advising our clients on for some time. We would be happy to talk to you about this in more detail.

Next Steps!

So if you don’t know if ESOS applies to you, whether your system is compliant, you want to be more energy efficient or simply want to save money you need to contact us. We can help answer your questions and advise you on what you need to do.