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The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment and energy saving identification scheme for large undertakings (and their corporate groups). In simple terms, an ESOS Assessment requires participants to do the following: – measure their total energy consumption, conduct energy audits to identify cost-effective energy efficiency recommendations and report compliance to the Environment Agency (as the scheme administrator).
The qualification criteria and requirements of ESOS are not entirely straightforward and many organisations will need to take substantive steps in order to comply.
But simple compliance itself misses the point and the objective of ESOS: to identify opportunities to reduce energy use and to cut consumption, emissions and cost accordingly.
Whilst there is no statutory requirement to take action on these opportunities, not to do so is to reduce ESOS to a costly compliance exercise rather than a means to achieve real savings.
Glaston Compressor Services has built a strong brand and positioning in the UK with its range of energy efficient compressed air and nitrogen generator systems. They recognise that many companies will need advice on how to comply with ESOS in a cost efficient and timely manner as well as putting energy saving opportunities into practice. Questioned on this, MD, Michael Douglas comments “We are here to assist our customers to bring the projects identified by the scheme to fruition and to overcome the barriers. Through our expertise in identifying energy saving opportunities, we have made a substantial contribution to increasing the energy and efficiency ratings of many manufacturing plants throughout the country. Often organisations don’t realise just how financially attractive and beneficial energy efficiency practices can be. We recognise many opportunities in ESOS, both for individual businesses and the UK as a whole.”
The intention is that every audit will recommend cost-effective measures that will save organisations energy and money. Saving money on escalating energy bills will make business operations more efficient and increase competitiveness. Cutting down on energy waste will help ease the strain on Britain’s energy infrastructure and contribute to meeting greenhouse gas reduction targets.
What has to be done to comply with ESOS?
In simple terms, an ESOS Assessment requires participants to do three things:-
You must measure your total energy consumption across all buildings, transport and industrial activities. You are required to measure your total energy consumption across a 12-month period (‘the reference period’). Energy consumption can be measured in either energy units (e.g. kWh) or energy expenditure. You must ensure that at least 90% of your total energy consumption is subject to an ESOS compliant energy audit, a Display Energy Certificate, a Green Deal Assessment or a certified ISO 50001 Energy.
2. Conduct energy audits to identify cost-effective energy efficiency recommendations.
The scheme is estimated to lead to £1.6bn net benefits to the UK, with the majority of these being directly felt by businesses as a result of energy savings.
3. Report compliance to the Environment Agency (as the scheme administrator).
Participants are not required to implement energy efficiency recommendations identified by their ESOS Assessments. However, they will only achieve the financial benefits that arise from avoiding energy waste if they do implement cost-effective recommendations identified. Reporting compliance to the Environment Agency (as the scheme administrator) MUST be done by 5th December 2015, you must notify the Environment Agency that you have complied with the scheme.