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Utilities & Environmental

How to make your business ESOS compliant – a 7 step guide

By 24th June 2015May 15th, 2023No Comments


<br /> Eddie Finch

Posted by:
Eddie Finch

The Energy Savings Opportunity Scheme (ESOS) is a new piece of UK legislation that requires a mandatory programme of energy audits and reporting of compliance for large undertakings and their corporate groups.

Time is running out for reporting. The deadline for organisations to comply is the 5th of December 2015 and all organisations considered to be defined as an ‘ESOS large enterprise’ will have to undergo a comprehensive audit and data collection carried out by a qualified assessor.

The scheme is likely to affect up to 10,000 businesses in the UK – particularly those with >250 employees or a turnover of > than £50 million.

The 7 steps of ESOS:

1. Determine whether you qualify for ESOS
You are likely to qualify for ESOS if, on the 31 December 2014, you are:

  • An undertaking that has 250 or more employees in the UK.
  • An undertaking that has fewer than 250 employees, but has:

– An annual turnover exceeding €50m and
– A balance sheet exceeding €43m.

  • Part of a corporate group that includes an undertaking which meets criteria (1) or (2) above.

2. Consider if all your energy consumption is covered by an ISO 50001 Energy Management System.

If you are certified by ISO 50001, your ESOS assessment will be verified however, notification to the Environment Agency is still required. If you do not possess an ISO 50001 certification – you should continue to step 3.

3. Measure your total energy consumption.
This should be measured across a 12-month period and includes consumption in:

  • Buildings
  • Transport
  • Industrial processes

Measurement should be made in kWh or energy expenditure.

4. Determine your areas of significant energy consumption.
After you have determined your total energy consumption you must measure ‘significant energy consumption areas’ – those above 90% of your total consumption.

5. Consider the routes to compliance available to cover your areas of significant energy consumption.
The four main types are:

  • ESOS Energy Audits
  • An ISO 50001 certified Energy Management System
  • Display Energy Certificates (DECs’s)
  • Green Deal Assessments

6. Audit areas of significant energy consumption.
This must be undertaken by a qualified lead assessor – either in-house or external and in line with the minimum ESOS standard guidelines.

7. Report your compliance.
Notify your compliance to the Environment Agency – via the online reporting system. This should be done by December 5th 2015. For the full in-depth comprehensive guide click here for more information.

What to do now:

  • Determine whether you comply
  • Collect energy data for your reporting period (one year covering 31st Dec 2014)
  • Decide on either the ISO 50001 or energy audit process

Act now by contacting one of our qualified assessors to arrange a no obligation interview to establish whether your company is authorized to comply, and find out how the Auditel Business Hub Partnership can help manage your overall compliance as well inform you of our strategic cost management services.