Esos explained
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ESOS is a mandatory energy assessment scheme for large UK businesses aimed at reducing energy usage and improving efficiency. Around 7,000 large businesses are affected by ESOS, but by mid-2015 only 85 had notified authorities about their compliance, suggesting many struggled to meet the original deadline. ESOS assessments must provide a complete review of a business's energy usage and intensity, and identify effective energy saving opportunities. Qualifying businesses are those employing over 250 people or with an annual turnover over 贈38 million, and assessments can only be conducted by approved assessors.
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The Energy Savings Opportunity Scheme (ESOS) requires UK large companies to conduct energy audits every four years to comply with energy efficiency directives. Many businesses are unaware of their compliance obligations, potentially facing fines up to 贈50,000. Key compliance steps include measuring energy use, identifying significant consumption areas, and appointing a lead assessor by December 5, 2015.Everything You Need to Know about ESOS
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Esos explained
- 1. ESOS explained The Energy SavingsOpportunityScheme,orESOSas itis affectionatelyknown,isbignewsforbig businessesinthe UK.On the one hand,itsa chance for businessestorefine andevaluate their operational andcostefficiencies,andtobecome more profitable asa result.Onthe otherhand,its anotherpiece of legislation,amongall the otherlegislationsyouneedtosortout,that couldsee your businessleftoutinthe coldif youre notreadyto become compliant. Around7,000 large businessesinthe UKare currentlyaffectedbythe ESOSscheme,andby mid- 2015 only85 had notifiedthe EnvironmentAgencyabouttheircompliance (1).Thissuggeststhat manybusinesseswouldhave hadabit of a panic on theirhandstomeetthe original December deadline,andprobablyagoodnumberhave alreadyrequestedanextension. Whetheryoure abig businessownerorare just curious aboutwhatthe ESOSis goingto dofor the UK, hereswhatyouneedtoknowabout the scheme andwhatcompliance reallyentails: What is ESOS? ESOS hasbeenstimulatedbyapiece of EU legislation, specifically the EuropeanUnion'sEnergy EfficiencyDirective whichcame intoeffectinDecember2012. It is monitoredandadministeredby the EnvironmentAgency,and wasputtogetherbythemalongwithDECC and the CarbonTrust (2). ESOS aimsto reduce the amountof energyusedbylargerbusinesses,andinitial estimations bythe CarbonTrust and DECC showthat withjusta 6 per centreductionfromthe UKs largestbusinesses, the nationcouldsave enoughpowertotake care of 160,000 homes;around3TWh eachyear (2). Who is affected? ESOS isdesignedtoencourage biggerbusinessestobecome more efficient,bothintermsof energy directly andintheiroperationsin general.Companieswhichare affectedwillusuallyemploymore than 250 people,orwill have aturnoverof more than 贈38 million/50 million (3).Forinternational corporations,if the UK arm of the businessexceedseitherof these thresholds,youre withinthe remitof ESOS (3). Governmentbodiesare notincluded,butcharitiesare. SMEsare not mandatorilyincluded,butcan undertake the assessmentsand avail of the recommendationsinordertoimprove andincrease efficiencieswithintheirbusiness.Businesseswhoare coveredbyISO50001 will notneedtocarry out a full ESOSassessment (4). What does it mean? Simplyput,ESOSisa scheme whichencouragesbusinessesto assesstheirenergyusage,andto make relevantefficiency improvements asa result.Thisisdeliveredby wayof a mandatoryannual audit.Asa minimum,the assessmentmustprovide: A complete reviewof energyuse withinthe business,andthe intensityof energy use forthe company An identificationof effective energysaving opportunities,quantifiedbycostsavingsalso Assessmentscanonlybe conductedbyESOS approvedassessors,whichusually meansyouwill need to employaconsultantor see whathelpyoucan getfrom yourenergysupplier.
- 2. Help from energy suppliers Most of the bigsixenergysuppliersare offeringsome formof helptobusinesseslookingtocomply withESOS.npower,forinstance,are offeringassistance totheirelectricityandgascustomers (7),by wayof: Extractingelectricityandgassupplydatafor auditpurposes Offeringadvice onotherfuelssuchastransport Provingsupportforthe auditand identificationof energy efficiency opportunities Ensuringall the necessaryrequirementsare fulfilled Assistance withimplementingpostaudit recommendations Undoubtedly npowerare notthe onlymajor fuel supplierwillingtoofferthisimportantand significantassistance withESOS.If youare a larger businessandare lookingforaneasyroute to compliance,youwoulddowell tospeaktoyourfuel supplier firstandsee whatexpertadvice and supportisavailable fromthem.