Energy Savings Opportunities Scheme set to be simple, avoid duplication and minimise costs

Paul Martin
Managing Director

The Energy Savings Opportunity Scheme (ESOS) according to DECC’s “current thinking” will be launched in June and will require all large companies in the UK to undertake mandatory energy-efficiency assessments for submission to the Environment Agency in 2015.

The Energy Savings Opportunities Scheme is the Government’s approach to implementing Article 8 of the EU Energy Efficiency Directive, which requires all Member States to introduce a programme of regular energy audits for ‘large enterprises’ to identify energy saving opportunities.

The scheme will apply to all ‘large enterprises’ in the UK employing 250 or more full time staff as well as those with a turnover of more than €50m and a balance sheet of more than €43m. Public sector organisations are exempt from the scheme.

Following wide consultation the Department of Energy and Climate Change (DECC) are taking a pragmatic approach to the interpretation of Article 8 of the EU Energy Efficiency Directive. The key messages emerging from the consultation are that respondents want the scheme to be simple and meaningful whilst avoiding duplication with existing regulation and requirements and minimising cost to relieve unnecessary burden on affected businesses.

property_managementOrganisations using TEAM products such as the Sigma Energy Monitoring & Targeting software, CRC module, and those who have produced Display Energy Certificates (DECs) or have implemented ISO 50001 possibly through our Wiki 50001 framework will be well placed to comply with the legislation.

Routes to compliance include

  • ISO50001
  • Display Energy Certificates
  • Previous audits to ESOS standards
  • ESOS compliant energy assessments (either conducted in-house or by an external assessor)

Any energy audit or survey or relevant identification of energy saving work that has been undertaken since 2011 can be included. The assessor can use their discretion on the number of sites visited for audit and representative samples could be used.

An organisation would need to identify an approved Energy Savings Opportunities Scheme assessor (either an in-house expert or an external consultant) to conduct the ESOS assessment, gather data on energy usage at an appropriate level of detail, and undertake an Energy Savings Opportunities Scheme assessment by December 2015, renewing the assessment at least every four years thereafter.

The definition of who can be an approved ESOS assessor is still being considered but DECC are minded to not create a new category of assessor and are likely to accept accreditations that are already in use which could include relevant Chartered Engineers, CIBSE Low Carbon Consultants, DEC Assessors etc.

Energy Saving Opportunities SchemeThe mandatory Energy Savings Opportunities Scheme assessment will include

  • Measuring energy use (of 90% of their portfolio for at least a year)
  • Identifying energy efficiency and energy management opportunities
  • Evaluating opportunities
  • Storing data and notifying scheme administrator

What do I need to do next?

Firstly you need to find out if your organisation falls into the criteria set out by the legislation. If so, it may be prudent to inform management and begin to prepare to plan to comply even before the legislation comes into effect. The questions to consider then could be as follows:

  • Gap Analysis – What is the gap between which information I already have and what I need?
  • Have I got the necessary consumption and cost information for a year?
  • Have I got anything that favours a particular route to compliance, ie ISO 50001, Display Energy Certificates (DECs) completed, energy surveys done, energy saving opportunities already identified since 2011
  • Who do I need to nominate as Energy Savings Opportunities Scheme assessor?
  • Do I carry this out internally or do I need outside help?

How can TEAM help?

TEAM can help with carrying out a Gap Analysis’ to identify what information is already available and what (if any) further information you may need to comply. We can also help you look at the options and pinpoint the best route to compliance. If required, our experienced Energy Assessors and Consultants can assist with carrying out representative samples of audits or implement ISO50001 as an alternative route to compliance.

Contact Andrea Shoel, Business Development Manager at TEAM on 01908 690018 ext 8151 to find out more.

Posted by Paul Martin on 24 March 2014
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