What is the Energy Savings Opportunity Scheme (ESOS) and how does it affect my business? - Core

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17 January 2022

What is the Energy Savings Opportunity Scheme (ESOS) and how does it affect my business?

The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment scheme designed to drive improvements in energy efficiency in large corporate organisations.

Qualifying companies must assess their energy usage every 4 years. This involves auditing the energy used across buildings, industrial processes and transport and identifying where cost-effective energy saving measures could be implemented.

The scheme is overseen by the Environment Agency in England, the Northern Ireland Environment Agency, the Scottish Environment Protection Agency, and Natural Resources Wales. Organisations must notify their relevant agency by the published deadlines that they are ESOS compliant. The deadline for the first compliance period was 5 December 2015. The deadline for the second compliance period was 5 December 2019. The next date will be 5 December 2023.

Does it affect my business?

Your company or organisation must comply with ESOS if, on the qualification date:

  • You have over 250 members of staff, or
  • A turnover of over 50 million Euros (£44.1m) or an annual balance sheet of over 43 million Euros (£37.9m)
  • You are an overseas organisation with over 250 employees in the UK
  • Your company is part of a larger organisation, which falls into any of the above

The qualification date for the third compliance period is 31 December 2022. Companies that are close to the qualification threshold or have substantially increased or decreased in size in recent years, can consult government guidance to find out how to assess whether they qualify.

What do I need to do if I qualify?

If your business is required to comply, this is something Core’s Energy team can help with.

The audit and compliance process is far from straightforward but we have helped lots of organisations of different sizes and sectors to successfully complete their assessments and reporting. One of our strengths is in identifying cost-effective energy efficiency measures, carrying out full feasibility and helping to implement these across an organisation. This has both cost and efficiency benefits in addition to supporting ESOS compliance.

We can help with:

  • Collating and analysing consumption data
  • Calculating your carbon footprint
  • Managing your entire ESOS strategy and plan.

If you qualify for ESOS and your organisation is fully covered by ISO 50001, you do not need to carry out an ESOS assessment. You can simply notify the Environment Agency that you are compliant with ESOS.

If you qualify for ESOS, but your organisation is not fully covered by ISO 50001, you will need to carry out an ESOS assessment.

Here are some of the steps you should take – we can help you with each of these:

  • Calculate your total energy consumption
  • Identify assets and activities with the highest energy consumption
  • Identify whether ESOS compliant energy audits have been, or need to be, carried out for the areas of significant energy consumption
  • Appoint a lead assessor to oversee your audits and ESOS assessment.

You can then let the Environment Agency know that your assessment is complete and submit an ESOS notification of compliance. You will also need to keep a record of how you complied with ESOS. This is something we can support you with too.

To find out more about how Core Energy can help you with energy audits, ESOS assessments and efficiency planning contact us on 01422 880 180.