How the Energy Savings Opportunity Scheme (ESOS) can benefit your business

With the next ESOS compliance date set for December 2019, businesses looking to take advantage of the Energy Savings Opportunity Scheme should work towards compliancy ahead of time. We advise that you prepare well in advance to help ensure that your ESOS energy audit runs as smoothly as possible, in order to receive the full benefits that the scheme can provide. In this article, Glaston explains what benefits ESOS compliance can provide your business and how to get the most of your next ESOS energy audit.

ESOS energy audit

Since 2014, the Energy Savings Opportunity Scheme (ESOS) has helped UK non-public sector businesses identify opportunities to reduce energy and cut overall costs.

ESOS is a mandatory energy assessment and energy saving identification scheme for large undertakings (and their corporate groups). If an organisation qualifies, they will need to carry out an ESOS energy audit every four years. These audits will assess the energy used in buildings, industrial processes and transport to help identify cost-effective energy saving measures which are then submitted to the Environment Agency for review (as scheme administrator).

Whilst there is no statutory requirement to act on these opportunities, not to do so is to reduce ESOS to a costly compliance exercise rather than a means to achieve real savings.

Energy saving opportunities with Glaston

Glaston Compressor Services has built a strong brand and positioning in the UK with our range of energy efficient compressed air and nitrogen generator systems. We recognise that many companies need advice on how to comply with ESOS in a cost-efficient and timely manner, as well as putting energy saving opportunities into practice.

Michael Douglas, managing director of Glaston says: “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.”

What is the ESOS Qualifying Criteria?

The qualification criteria and requirements for ESOS are not entirely straightforward. Essentially, any large UK undertaking or their associated corporate groups can apply for the Energy Saving Opportunity Scheme.

For reference, a business would be classified as a large undertaking if they meet one of the following criteria:

• A UK company that employees at least 250 people.
• An overseas company with a UK registered establishment with at least 250 UK employees (all of whom paying UK income tax).
• Or has an annual turnover in excess of €50 million and an annual balance sheet in excess of €43 million.

ESOS Compliance Guidance

Many of these organisations will need to take substantive steps in order to ensure compliance. However, the following should be a priority for ESOS energy audits:

1. Measuring your total energy consumption

You must measure your total energy consumption across all buildings, transport and industrial activities. Businesses are required to measure their total energy consumption across a 12-month period – known as ‘the reference period’.

Energy consumption can be measured in either energy units (e.g. kWh) or energy expenditure. 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 ISO 50001 Energy Certification.

2. Conducting 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. Reporting compliance to the Environment Agency (as the scheme administrator)

Participants are not required to implement energy efficiency recommendations identified by their assessments. However, they will only achieve the financial benefits that arise from avoiding energy waste if they implement cost-effective recommendations.

The intention is that every ESOS energy 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.
For further information about how Glaston can assist with ESOS compliance guidance, or to speak to us about our compressed air and nitrogen generation services, please contact us now on 01695 51010, or email info@glaston.com