Energy Savings Opportunity Scheme ESOS
Contents |
[edit] Background to ESOS ?
ESOS is a mandatory energy assessment scheme for organisations in the UK that meet the qualification criteria. The Environment Agency is the UK scheme administrator. Organisations that qualify for ESOS must carry out ESOS assessments every 4 years.
These assessments are audits of the energy used by their buildings, industrial processes and transport. The ESOS audit is designed to identify tailored and cost-effective measures to allow participating businesses to save energy and achieve carbon and cost savings. The audit costs are estimated to be significantly outweighed by the savings from implementing the recommendations. Energy audits can be carried out on buildings or across organisations to assess their energy use and propose measures that might be taken to reduce energy consumption.
[edit] Who needs to be aware of ESOS?
ESOS applies to large UK undertakings and their corporate groups. It mainly affects businesses but can also apply to not-for-profit bodies and any other non-public sector undertakings that are large enough to meet the qualification criteria.
Your organisation qualifies for the third compliance period (ESOS phase 3) if, on 31 December 2022, it met the ESOS definition of a large undertaking. Corporate groups qualify if at least one UK group member meets the ESOS definition of a large undertaking. Public sector organisations do not usually need to comply with ESOS.
[edit] What does an ESOS involve?
The current steps required to complete an ESOS assessment are:
[edit] Calculation of total energy consumption
The energy used by assets held or activities carried out by an organisation or group. This includes the energy consumed by buildings, industrial processes and transport.
[edit] Identify your areas of significant energy consumption
in energy used by assets held, or activities carried out, by the organisation that account for at least 95% of your total energy consumption. This means the organisation needs to
- Find out whether ISO 50001, DECs or GDAs cover any of the areas of significant energy consumption.
- Identify whether ESOS compliant energy audits have been, or need to be, carried out for the areas of significant energy consumption not covered by ISO 50001, DECs or GDAs.
As long as 95% of the total energy consumption is covered, a mix of approaches can be used with some energy consumption covered by ISO 50001, some by DECs or GDAs, and some by ESOS energy audits.
Significant energy consumption in phase 2 of ESOS was defined as at least 90% of total energy consumption, and the increase to 95% for phase 3 of ESOS is subject to parliamentary procedure.
[edit] Appoint a lead assessor
All participants need to have ESOS assessments signed off by an ESOS lead assessor. It is the organisations responsibility to select a lead assessor with the necessary skills and experience to help the business comply with ESOS. A lead assessor is required to carry out and oversee or review your energy audits and overall ESOS assessment. Lead assessors can be employees or external contractors as long as they are members of an approved professional body register.
[edit] Qualification criteria for a large undertaking
For the qualification date for the third compliance period of ESOS (31 December 2022) a large undertaking is any UK company that either: employs 250 or more people, or has an annual turnover in excess of £44 million, and an annual balance sheet total in excess of £38 million
Where a corporate group participates in ESOS, unless otherwise agreed, the highest UK parent will act as a ‘responsible undertaking’ and be responsible for ensuring the group as a whole complies. UK registered establishments of an overseas company will also need to take part in ESOS (regardless of their size) if any other part of their global corporate group activities in the UK meet the ESOS qualifying criteria.
An ‘establishment’ is a branch within the meaning of the Eleventh Company Law Directive (89/666/EEC), or a place of business that is not such a branch but where there is some degree of physical presence in the UK.
A person is employed by an undertaking if they are:
An ‘employee’ is a person employed under contracts of service. Their contracted hours and status (full time or part time) are irrelevant to their classification as an employee. The number of employees means the average number of people employed by the undertaking in the year. To work out your average number of employees, you need to:
Find the number of people employed by the company for each month of the financial year (whether for the whole month or part of it). Add together the monthly totals. Divide the total by the number of months in the financial year.
[edit] September 2023: Summary of changes for Phase 3
ESOS participants do not need to submit their notification of compliance until 5 June 2024 (previously the date was 5 December 2023) Qualification thresholds and date have not changed; ESOS still applies to all organisations (and their corporate groups) that were classed as large undertakings on 31 December 2022
These deadlines were circulated in the Environment Agency June 2023 newsletter.
[edit] Earlier consultations
The Department of Energy & Climate Change (DECC) carried out a consultation in 2014 on how best to implement the scheme and proposed that as a minimum, assessments must:
- Be carried out by and approved ESOS assessor.
- Review the total energy use and energy efficiency of the organisation.
- Recommend cost-effective measures to save energy and money.
The government intends that the ESOS:
- Provides high-quality and well-targeted advice.
- Ensures a proportionate approach to implementation, minimising the administrative burden.
- Ensures the ESOS compliments existing energy efficiency and climate change policy.
- Avoids ‘gold plating’ that disadvantages UK businesses.
[edit] Related articles on Designing Buildings
- Climate Change Act.
- Code for sustainable homes.
- Energy audit.
- Emission rates.
- Energy targets.
- Energy performance certificates.
- Green deal.
- Performance gap.
- Leadership in Energy and Environmental Design.
- Sustainability.
- Zero carbon homes.
- Zero carbon non-domestic buildings.
[edit] External references
Featured articles and news
Industry Competence Steering Group restructure
ICSG transitions to the Industry Competence Committee (ICC) under the Building Safety Regulator (BSR).
Principal Contractor Competency Certification Scheme
CIOB PCCCS competence framework for Principal Contractors.
The CIAT Principal Designer register
Issues explained via a series of FAQs.
Conservation in the age of the fourth (digital) industrial revolution.
Shaping the future of heritage
Embracing the evolution of economic thinking.
Ministers to unleash biggest building boom in half a century
50 major infrastructure projects, 5 billion for housing and 1.5 million homes.
RIBA Principal Designer Practice Note published
With key descriptions, best practice examples and FAQs, with supporting template resources.
Electrical businesses brace for project delays in 2025
BEB survey reveals over half worried about impact of delays.
Accelerating the remediation of buildings with unsafe cladding in England
The government publishes its Remediation Acceleration Plan.
Airtightness in raised access plenum floors
New testing guidance from BSRIA out now.
Picking up the hard hat on site or not
Common factors preventing workers using head protection and how to solve them.
Building trust with customers through endorsed trades
Commitment to quality demonstrated through government endorsed scheme.
New guidance for preparing structural submissions for Gateways 2 and 3
Published by the The Institution of Structural Engineers.
CIOB launches global mental health survey
To address the silent mental health crisis in construction.
New categories in sustainability, health and safety, and emerging talent.
Key takeaways from the BSRIA Briefing 2024
Not just waiting for Net Zero, but driving it.