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Don’t Get Caught Short! You may have heard of ESOS, but are not quite sure if your company must comply.


Liz Ainslie MSc IEMA, Environmental Consultant, discusses what ESOS is and what the implications are.


ESOS is the Energy Savings Opportunity Scheme.


It is


legislation to try and reduce the amount of energy used in the UK and


across Europe. All ‘large


organisations’ must comply with the scheme now, but all organisations should be thinking about this.


SME’s, in particular, have been asking if this is something that could affect them. There is a possibility SME’s could be just over the threshold for compliance. Also, an organisation could be part of a larger group, conglomerate, or be asked for reporting from other organisations they work with. Indirectly, these organisations may need to comply with ESOS in the future.


“It is estimated that if only 6% of the energy saving


recommendations were implemented, there would be a savings of £1.6 billion in energy between now and 2030!”


Currently, ESOS only applies to large organisations. This is defined as those with more than 250 employees in the UK or with a turnover of more than €50 million and €43 million on the balance sheet.


Some companies, with just a few employees, may be classed as a ‘large organisation’ due to their turnover, so don’t be caught out if you are a small-in-numbers company with a rather healthy balance sheet!


42 | ESOS LEGISLATION


Smaller organisations that are part of a larger group or conglomerate may be eligible to comply through the larger parent company.


So, in a nutshell, how do


you comply with ESOS? For those who meet the threshold, the basics are:


• Track all energy for 12 months


• Appoint a Lead Assessor, a qualified energy assessor who will audit energy usage and give you ways to reduce usage via a report


• Identify other audits and assessments that could count towards ESOS, including Display Energy Certificates or Green Deal Assessments


• Keep an Evidence Pack of all relevant information


• Submit a report to the Environment Agency by the 5th December, 2015 or face a fine


• Submit a report every four years going forward, or achieve certification to the ISO 50001 Energy Management standard.


What will this achieve?


Europe has targets to reduce energy usage – 20% by 2020 and 80% by 2050. To do this, the EU passed legislation called the European Energy Efficiency Directive, which all member states signed up to.


ESOS is a key driver to encourage the uptake of more energy efficiency measures – showing companies where they are wasting energy and to give cost-effective ways to reduce energy costs and carbon emissions.


It is estimated that if only 6% of the energy saving recommendations were implemented, there would be a saving of £1.6 billion in energy between now and 2030!


This doesn’t apply to


me now... The current ESOS regulations are only focussed on large organisations. However, in future small to medium sized companies may need to submit an ESOS declaration.


“Smaller organisations


that are part of a larger group


or conglomerate may be eligible to comply through


the larger parent company.”


As it’s a good idea to track energy use and identify ways to save money, why not take a page from the large organisation’s book and start now? Typically, 20% of a business’ annual energy costs are wasted through a lack of energy efficient equipment.


…but I want to save


energy! By tracking energy use and making efficiencies, significant savings can be realised. Implementation of ISO 50001, the Energy Management System, is an excellent way of doing this whatever the size of the organisation. The standard encourages continual improvement in energy efficiency year on year, plus it’s an excellent ISO to demonstrate to stakeholders your organised approach to running your business efficiently. In addition, those businesses who achieve this negate the requirement for four yearly ESOS reporting.


www.hosking-associates.com www.tomorrowsem.com


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