ESOS is being established by the Department of Energy and Climate Change (DECC) in response to the requirement for all Member States of the European Union to implement Article 8 of the Energy Efficiency Directive (‘the Directive’).
Now I have noticed a number of suppliers in the field of energy efficiency technologies, using the need for compliance with the Energy Savings Opportunity Scheme (ESOS) as an opportunity to promote their services and who can blame them? Every time a new piece of legislation come out, businesses want to know if they are at risk of penalties for non-compliance. So, what is the answer?
Well the reality is that ESOS only applies to large undertakings and these are defined as organisations employing 250 or more employees OR having an annual turnover exceeding €50m as well as a balance sheet exceeding €43m. If you are part of a large group, you may also find that you fall under the scheme. Beware as a lot of organisations with low turnover but high numbers of staff or high turnover with only a few staff will be captured.
There are some exclusions including Public Bodies so this is worth checking up on.According to the National Housing Federation, housing associations are classed as such.
So, if you do qualify as a large undertaking, what do you have to do? Well, in simple terms, you are required to:
- Measure your total energy consumption
- Conduct energy audits to identify cost-effective energy efficiency recommendations
- Report compliance to the Environment Agency (as the scheme administrator)
Note that transport costs are included. This is not just about electricity and gas consumption.
An ESOS-qualified Lead Assessor will need to be appointed to sign off your overall ESOS Assessment and currently, no ESOS-qualified Lead Assessors have been appointed as the professional registers are still being approved by the Environment Agency. You can start to look at data gathering on energy usage ahead of appointing a Lead Assessor and this is where Auditel can advise.
If you do not qualify as a large undertaking, there is no reason why you shouldn’t be looking at saving energy as a way of adding to your bottom line. As always, the same principles apply, If you can’t measure it, you can’t manage it and Auditel are well placed to monitor your energy consumption as a by-product of our expert energy procurement.