Your Ultimate Guide to ESOS (Energy Savings Opportunity Scheme)

Posted in ManufacturingOperations on Dec 5 2022, by Pamela NewenhamPamela Newenham

Your Ultimate Guide to ESOS (Energy Savings Opportunity Scheme)

You are undoubtedly aware of the significant influence that energy conservation has on your expenses and your company’s carbon footprint (for the better, of course). However, if you operate a big firm, you may be aware of the mandated energy assessment scheme, ESOS. Your company may be eligible for the Energy Savings Opportunity Scheme (ESOS), and it is important to understand what this entails for you, including the steps you must follow.

The ESOS process is divided into four annual cycles or 'phases.' This guide is intended to refresh your understanding of ESOS legislation and offer information about necessary actions.

What is ESOS?

Let's begin with the basics and discuss what ESOS is and how it came to be. The EU established the Energy Efficiency Directive in 2012 to meet its 20 percent energy efficiency objective by 2020.

The Energy Savings Opportunity Scheme (ESOS) is the United Kingdom's answer to 'Article 8' of the Energy Efficiency Directive, intending to reduce carbon emissions. This will be accomplished by mandating major enterprises to find and implement energy-saving initiatives. The initiative will have an impact on thousands of influential UK organisations.

Who is ESOS applicable to?

If your organisation fulfils the ESOS criteria of a significant undertaking on December 31, 2018, it is eligible for the second ESOS compliance period.

Businesses that are likely to be affected by ESOS satisfy the following requirements.

Run a company with 250 or more people.

A company that had less than 250 workers but:

Has a yearly revenue exceeding £39 million

A balance sheet worth more than £33.5 million

Is a member of a corporate group that includes an endeavour that fits one of the requirements above.

Organisations subject to the Public Contracts Regulations (2006) are excluded, except trusts, public businesses, and not-for-profit entities.

What are the benefits of ESOS?

Many organisations may be unaware that ESOS may give several advantages to their organisation. If your organisation complies with ESOS, you may be able to minimise your energy use and carbon emissions, which will result in cost savings if the recommendations are followed. Between 2015 and 2030, the net positive effect of ESOS on the UK is expected to be between £0.8bn and £3bn.

You may avoid penalties of up to £50,000 for non-compliance by ensuring you comply with the rules.

How can you comply with ESOS?

ESOS compliance is not the same for all ESOS-qualified organisations, which may be divided into three groups: those with ISO 50001 certification, those with zero energy supplies, and those without ISO 50001 certification and zero energy supplies.

ISO 50001 Certification

Suppose the organisation's Energy Management System (EMS) includes energy consumption under ESOS and has been ISO 50001 certified by an authorised certification authority. In that case, it must comply with ESOS by doing the following:

Request that a board-level director analyses the ISO 50001 certification results and certify that the organisation is ISO 50001 compliant. The board-level director should also confirm that the information in the communication is accurate.

Notify the Environment Agency that the organisation is already compliant with the Energy Savings Opportunity Scheme since it has an ISO 50001 certified EnMS that covers its energy consumption under ESOS.

Zero Energy Supplies

Zero energy supplies imply that the organisation has no physical assets or personnel who use energy. Organisations that satisfy this criterion must nevertheless comply with ESOS by performing the following:

Request confirmation from a board-level official that the organisation has no responsibility for the energy.

Notify the Environment Agency that they comply with ESOS since they have no energy suppliers.

No ISO 50001 Certification

Organisations must comply with ESOS by conducting an ESOS assessment that:

  • Do not have an EMS,
  • Have an EMS, but it is not ISO 50001 certified, or
  • Have an ISO 50001 approved EnMS, but it does not cover all energy consumption under ESOS and does not have zero energy supply.

How does the ESOS scheme work?

The ESOS assessment considers energy directly covered by Display Energy Certificates (DECs), Green Deal Assessments (GDAs), or ISO 50001.

You must complete the following tasks for your evaluation:

1. Determine Your Entire Energy Use

This is the energy your organisation’s or team’s assets, or operations expended. Buildings, industrial activities, and transportation all need energy.

2. Identify Your High-Energy-Consumption Regions

This is the energy used by your organisation’s assets or activities that account for at least 90% of your overall energy consumption. Then you must:

Determine if ISO 50001, DECs, or GDAs apply to your essential energy use sectors.

Determine if ESOS-compliant energy audits have been performed or are required for areas of high energy usage that are not covered by ISO 50001, DECs, or GDAs.

3. Designate A Lead Assessor

A lead assessor must be appointed to monitor or evaluate your energy audits and overall ESOS assessment. Lead assessors may be either employees or independent contractors as long as they are on the registration of a recognised professional organisation.

4. Inform the Environmental Agency

When you have completed an ESOS evaluation and comply with your requirements, you must submit your ESOS notice of conformity to the Environment Agency. To do this, use the online notification system.

5. Maintain Records

In an evidence pack, you must retain documents of how you have complied with ESOS. There is no predefined format for this.

Conclusion

Making sure your firm is energy efficient should be one of your top objectives, and it is a duty that every significant organisation must keep. Compliance with ESOS will not only save your company's energy expenditures but will also benefit the environment. And CoolPlanet is here to assist you at every step of the process.