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IS YOUR BUSINESS ESOS READY?

The Energy Saving Opportunity Scheme (ESOS), is a new UK regulation under which large businesses must carry out energy efficiency audits and is likely to affect more than 10,000 organisations.

Businesses meeting the directive criteria have until December 5th, 2015 to ensure compliance and failure to do so could see them met with hefty fines of £50,000+.

The benefits of ESOS are expected to be triple-fold – increasing energy efficiency, improving business profitability/competitiveness, while at the same time mitigating climate change.

But, in order to identify such opportunities, the companies are obliged to carry out/or have carried out on their behalf, mandatory assessments of their current energy usage.

And the ESOS regulations require the audit to be repeated every four years there on.

Businesswise is well placed to support clients throughout the various ESOS assessment stages in the coming year and thereafter.

Acting as your lead assessor, we will lead your business through the process over the next 12 months, ensuring accurate measurement of your existing consumption, identifying areas of reduction and providing a robust strategy for compliance.

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All you need to know about ESOS

ESOS qualification criteria
ESOS qualification criteria

How do I know if I comply?

 

ESOS regulations apply to your organisation if you:

• Employ 250 people or more in the UK

Or

You have fewer than 250 employees, but have:

• An annual turnover exceeding £42.5m;

• A balance sheet exceeding £36.5m;

Or

• You are part of a corporate group containing a large enterprise

As well as large private sector businesses, ESOS may also apply to:

• Partnerships

• Trusts

• Universities

• Charities and other not-for-profit bodies

If you’re in any way uncertain as to whether your business meets the ESOS criteria, please contact us here.

How do I comply?
How do I comply?

In order to comply with ESOS regulations you must undertake an ESOS assessment, for which the starting point is to appoint a qualified lead assessor to carry out/oversee your audit.

The Lead Assessors are members of a professional register approved by the Environment Agency, so make sure that their professional’s registration meets the specifications of PAS 51215:2014.

You must also ask your Lead Assessor to review your ESOS assessment as a whole. However, it remains your organisation’s legal responsibility to ensure that all of your areas of significant energy consumption are audited.

 

The ESOS assessment must cover all UK operations over a 12 month period including 31st December, 2014 and include the following:

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What are the key dates for compliance
What are the key dates for compliance?
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Non-compliance
Non-compliance

Failure to undertake an ESOS Assessment or comply via an alternative approved route to compliance will result in a monetary penalty.


If companies do not comply with ANY aspect of an ESOS Assessment (not using sufficient data, not using a Lead Assessor etc.) this would be considered failure to comply. A scheme administrator would consider whether the justification given is reasonable before determining whether to impose a penalty.


The penalty will be:


• A requirement to conduct an ESOS Assessment by a date specified by the scheme regulator; and/or


• A penalty of up to £50,000; and/or


• An additional £500 per day penalty for each day starting on the day after the compliance date that the participant remains non-compliant; and/or


• Publication of details of non-compliance

Energy Saving Assessment Examples
Energy Saving Assessment Examples

There are numerous areas which need to be taken into consideration when carrying out your assessment, which is why it makes sense to start early and split into manageable chunks. While every business will be different, below are some of the common areas of business energy you may need to consider.

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Submitting ESOS Assessmenents
Submitting ESOS Assessments

As an ESOS participant you will need to provide a notification to the Environment Agency, that you have complied with the requirements of ESOS on or before the compliance date of each phase.

Before you can submit your notification to the Environment Agency, you will need to have your ESOS Assessment signed off by a company director, or, if your organisation does not have a director, an equivalent senior manager.

If you are using an in-house Lead Assessor to conduct, oversee, or verify assessments, two directors (or senior managers) are required to sign off that they have seen and considered the ESOS Assessment put before them. This is to provide an additional safeguard as to the independence and quality of the report, given that it is being conducted in-house.

Example Project Format
Example Project Format
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