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How To Comply

The Energy Savings Opportunity Scheme (ESOS) is not an 'opt-in' scheme but rather a mandatory initiative for large enterprises across the UK. It should not be dismissed as 'just another carbon tax'; it is, in fact, a real opportunity for your business to recognise tangible financial savings through energy efficiency.

As the director or key stakeholder in a large UK enterprise, you have until 5th December 2015 to comply with ESOS or risk significant financial penalties. The scheme is administered by the Environment Agency who are funded solely by licences and penalty awards.

You must comply with ESOS regulations by the December deadline if your company is in the private or third sector and:

  • Your company has 250+ employees, and/or
  • Your company turnover is over £42.5m, and
  • Your company balance sheet is over £36.5m
  • Compliance Deadline 29th January 2016
  • Mandatory Requirement
  • Free Company Review
  • Qualified & Accredited Lead Assessors
  • Full Auditing Capabilities
  • Ensure Pre-Deadline Compliance

What Does Compliance Involve?

home-imageESOS Assessment requires participants to do three things – Measure, Audit and Report.

  • Measure the total energy consumption of your corporation – this includes your buildings, transport and industrial activities.
  • Audit your energy consumption to identify cost-effective energy-saving recommendations. 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 Management System during each phase of the scheme. Unless your total energy consumption is covered by a certified ISO 50001 Energy Management System, you must ensure that your ESOS Assessment is conducted or reviewed by a qualified Lead Assessor.
  • Report your compliance to the Environment Agency by 29th January 2015, outlining that you have fulfilled your ESOS obligations. You must ensure that your ESOS assessment has been reviewed by a Board-level Director and approved by a Lead Assessor.

Costs Towards Compliance

The costs of complying with ESOS obligations will vary depending on the type of business you own. Typical single site businesses with high turnover, low staff numbers and limited complexity could see an ESOS assessment costing as little as £5,000 + VAT. Whereas a multi-site engineering business with significant staff numbers, large transport costs could see compliant assessments costing upwards of £50,000. Long-term, it is estimated that a £5K audit could identify savings worth £120,000, or a £50K audit could identify savings worth £1.2m.

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Latest News

The Environment Agency has revealed that there was a major surge in the number of British businesses registering as being compliant with its Energy Savings Opportunities Scheme (ESOS) in recent weeks. The rush to register as compliant with ESOS regulations...
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