Energy Savings Opportunity Scheme (ESOS) – New legislation requires energy assessment to be submitted by December 5
What is ESOS?
ESOS is the UK’s response to Article 8 of the European Commission’s Energy Efficiency Directive. The aim is to cut carbon emissions by requiring large businesses to identify energy reduction measures and make energy savings. Thousands of UK organisations will be affected by the scheme.
How do I know if my company is affected?
If your business has over 250 employees or 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) (as of December 2014) then ESOS applies to you and you will need to submit your report by December this year. The only exception is if your organisation is already covered by ISO 50001 in which case you only need to notify the Environment Agency that you are compliant.
What do I need to do?
Under ESOS, all large companies must undertake an energy audit conducted or overseen by an approved ESOS Lead Assessor once every four years. Audits will include an estimate of total energy consumption, covering buildings, industrial processes, and transport, and identify energy saving opportunities. The audit must be signed off by a board-level director before being submitted to the Environment Agency. The first deadline will be 5 December 2015.
What does an energy audit involve?
For your energy audit, you will need to:
1. Calculate your total energy consumption
This is the energy used by assets held or activities carried out by your organisation or group. This includes the energy consumed by buildings, industrial processes and transport. To find out how to calculate your total energy consumption read the full ESOS guidance.
2. Identify your 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.
3. Appoint a lead assessor
You need to appoint a lead assessor to carry out and oversee or review your energy audits and overall ESOS assessment. Lead assessors can be employees or external contractors as long as they are members of an approved professional body register.
4. Notify the Environment Agency
You need to submit your ESOS notification of compliance to the Environment Agency when you have undertaken an ESOS assessment and are compliant with your obligations.
You must do this by 5 December 2015, and if applicable, every 4 years afterwards.
5. Keep records
You need to keep records of how you have complied with ESOS in an evidence pack. There is no set format for this.
How an Energy Audit can Benefit your Organisation
An energy audit allows you to assess your energy consumption. A large percentage of your company’s usage is likely to be through heat generation and this is where biomass heating and biomass CHP systems can help significantly. At HWEnergy we have worked with companies such as Sky and the Co-operative Food, helping them to improve their energy efficiency and reduce their carbon footprint and energy costs through biomass heating.
Find out more on our Projects page.