In late June 2014, the Department for Energy and Climate Change (DECC) introduced legislation for an Energy Savings Opportunity Scheme (ESOS), a mandatory energy assessment and energy saving identification scheme for large undertakings (and their corporate groups). It is intended to meet the requirements of the EU Energy Efficiency Directive.
To read our briefing note on this topic, members can click on the link below.
The Energy Savings Opportunity Scheme (ESOS) requires large companies to undertake energy audits including transport, buildings and industrial operations every four years. This is in accordance with the EU Energy Efficiency Directive.
All companies with either 250 or more employees or those with less than 250 employees but an annual turnover exceeding €50 million (approximately £40 million) and a balance sheet exceeding $43 million (approximately £34 million) are in scope of ESOS. Companies need to measure total energy consumption; conduct energy audits to identify cost-effective energy efficiency recommendations; report compliance to the Environment Agency (the scheme administrator)
- At least 90 per cent of total energy consumption is subject to ESOS.
- Only fuel purchased by the company will be covered by ESOS.
- Sub-contracted transport is excluded.
- There will be financial penalties for non-compliance.
An ESOS Lead Assessor will be required to conduct the audits. The Environment Agency has published its an approved list of public bodies that hold registers of Lead Assessors. These assessors must meet the Publicly Available Specification (PAS) 51215 Energy Efficiency Assessment – Competency of a lead energy assessor.