Sustainability & Responsibility

ESOS - Energy Savings Opportunity Scheme

ESOS is the UK’s implementation of Article 8 of the EU Energy Efficiency Directive.  It is a mandatory energy assessment scheme and the penalty for organisations not meeting the deadline may be civil sanctions including financial penalties.

By 5 December 2015, organisations in the UK, employing at least 250 people or employing less than 250 people but with an annual turnover in excess of 50 million euros (£38, 937,777) and an annual balance sheet total in excess of 43 million euro (£33,486,489), must carry out an Energy Savings Opportunity Scheme (ESOS) assessment and notify the Environment Agency.

Yet the reasons for meeting the scheme’s obligations are far more compelling than simply avoiding a fine.  ESOS compliance is set to help unlock ‘substantial, untapped and cost-effective energy efficiency potential in the UK economy’.  Those organisations with ESOS compliance have the potential to reduce costs and so enhance profitability, improve corporate social responsibility (CSR) and boost competitiveness.

Organisations will always have a need to achieve compliance with the ever evolving legislative landscape so, in our line of business we constantly have one eye on the horizon to see what compliance demands are going to be placed on our clients.

EDP work with clients in providing compliance management services.  Acting as their ESOS lead assessor, EDP will oversee, deliver, measure and approve the ESOS energy audits.  The process will involve EDP’s four step delivery and management process that includes:

1.  Project scoping – confirming which elements of a business’s activities will fall within ESOS and collecting the evidence.Assigning the roles and responsibilities within the organisation and defining and scoping the audit timescales across each site requirement.

2.  Energy audit – reviewing existing energy audit work from other schemes;  undertaking the ESOS audit using qualified and registered ESOS lead assessors; measuring total energy consumption across the business including applicable business travel, both historically and for a ‘reference period’; identifying areas of significant energy consumption that make up at least 90 per cent of the total energy consumption; recording energy consumption profiles and identifying energy saving opportunities as cost-effective energy efficient improvements with life cycle cost analysis.

3.  Ensuring compliance – supporting the business in confidently fulfilling its obligations by presenting key findings in a format that best suits the business so the recommendations in the ESOS report can be signed off by a director. Notifying the Environment Agency of compliance and maintainance of the evidence pack, detailing the required aspects of compliance.

4.  Implementing audit recommendations – using the results from the mandatory audit to put in place energy saving measures in order to achieve real financial and carbon savings.

Although the fourth step is not a specific requirement of ESOS, it does make good business sense to complete the final stage of the EDP Four Step Solution and use the results of the mandatory audit to realise energy efficiency improvements.  The efficiency benefits and cost savings made from these improvements often far outweigh the original costs of ensuring ESOS compliance. 

ESOS participants must carry out an ESOS assessment every four years and EDP work with organisations to develop continued ESOS compliance through EDP’s ESOS Continued Compliance Roadmap.