ESOS – is your business compliant?
ESOS – the government’s Energy Savings Opportunity Scheme – is a mandatory energy assessment scheme for large UK organisations.
The compliance period for Phase 3 of ESOS is now underway and organisations which meet the qualification criteria should begin the compliance process. Failure to comply with ESOS regulations could result in financial penalties.
Our business energy compliance experts can help you with all aspects of ESOS, whether your organisation is new to the scheme or took part in Phases 1 and/or 2.
What type of organisations have to comply with ESOS?
ESOS applies to ‘large UK undertakings’, deemed to be any UK company which either:
- Employs 250 or more people
- Has an annual turnover in excess of 50 million Euro (£38,937,777) and an annual balance sheet total in excess of 43 million Euro (£33,486,489)
- An overseas company with a UK registered establishment which has 250 or more UK employees paying income tax in the UK
ESOS compliance criteria
The new compliance period runs until December 2023, by which time all qualifying organisations will need to have:
- Measured total energy consumption (collation of a 12-month period of data including the qualification date of 31st December 2022).
This is the energy used by assets held or activities carried out by your organisation and includes the energy consumed by buildings, industrial processes and transport.
- Identify areas of significant energy consumption
This is the energy used by assets held or activities carried out, by your organisation that account for at least 90% of your total energy consumption. If you have ISO50001, you may automatically comply with some areas. You then need to identify whether ESOS compliant energy audits have been, or need to be, carried out for the areas of significant energy consumption not covered by ISO 50001.
- Reported compliance to the organisation which administers the scheme (this will be the Environment Agency in England, SEPA in Scotland, NIEA in Northern Ireland and NRW in Wales).
- Appointed a lead assessor to carry out or review energy audits and overall ESOS assessment, these can be employees or external contractors as long as they are members of an approved professional body. IEC has comprehensive experience in delivering ESOS assessments for a wide range of organisations.
- Develop and maintain a full evidence pack showing how you have complied with ESOS.
How to prepare for ESOS compliance
Early preparation is important to ensure your business is fully compliant by the deadline, with the added benefit that you should be able to achieve cost savings as a result of greater energy efficiency.
We can provide tailored support to help you understand the implications of ESOS on your organisation and to undertake the necessary measurements and audits to comply with the scheme.