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New Energy Savings Opportunity Scheme (ESOS) Regulations

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New Energy Savings Opportunity Scheme (ESOS) Regulations

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The new Energy Savings Opportunity Scheme (ESOS) Regulations, which bring into force Article 8 of the EU Energy Efficiency Directive, requires all large businesses to carry out comprehensive assessments of energy use and opportunities of energy efficiency – these assessments must be done at least once every four years.

The deadline for the first compliance period is 5th December 2015.

Who is included in the ESOS Regulations?

The criterion for inclusion to ESOS applies to any organisation that has more than 250 employees or has an annual turnover greater than €50 million and a balance sheet greater than €43 million. Additionally, any corporate group where at least one member of the UK group meets the ESOS criteria is included in the ESOS Regulations. Most public sector bodies are excluded, but many Universities may well qualify. Although, organisations may not need to undertake the Assessment if are fully covered by ISO 50001.

What needs to be done to comply?

To comply with the ESOS regulations, a ‘Lead Energy Assessor’ will need to conduct an ESOS Assessment to:

• Measure your total energy consumption for all of your buildings, industrial processes and transport
• Identify any areas of significant energy consumption, accounting for at least 90% of your total energy consumption
• Identify cost-effective energy efficiency recommendations for any areas of significant energy consumption
• Report compliance to the Environment Agency

Please note that organisations are not required to implement energy efficiency recommendations however financial benefits will only be achieved if these are implemented.

What are the benefits of ESOS?

Carbon Trust state that approximately 40% of the simple recommendations issued by the Lead Energy Assessor end up being implemented with 20% of the long-term or more complex suggestions taken forward. This means that large business can save around 15% of their energy costs through the recommended efficiency measures. While these efficiency measures are not free or cheap, the majority of organisations will have made their money back after just three years.

Further information on the ESOS Regulations can be found here.

Julius Rutherfoord