Energy Savings Opportunity Scheme (ESOS)
(ESOS) The Energy Saving Opportunity Scheme The Energy Savings Opportunity Scheme (ESOS) is the UK implementation of the European Union 2012 Energy Efficiency Directive, Article 8. ESOS is a policy aimed at increasing energy efficiency to improve business profits and competitiveness as well as mitigating climate change. The scheme requires all large ‘undertakings’ (the vast majority of which are commercial businesses) in the UK to undergo a mandatory assessment of energy use and energy efficiency opportunities across sites that collectively represent the majority of the total energy use of the organisation. The ESOS regulations require that the audit is repeated every four years. The government estimates that the net benefit of the policy to the UK will be around £1.6 billion between 2015 and 2030, based on a conservative prediction that only 6 per cent by value of potential energy saving opportunities identified will be implemented. How will it affect my organisation? The ESOS regulations apply to any large undertaking or enterprise that carries out a trade or a business, which includes any corporate group where one or more members of the UK group meet the ESOS definition of a large undertaking. An organisation is considered a large undertaking if it:
- Employs 250 or more people or
- Employs fewer than 250 people, but has an annual turn-over in excess of €50 million and an annual balance sheet in excess of €43 million or
- Is a part of a group that includes at least one entity that meets either of the criteria stipulated above.
What are the benefits of ESOS to my organisation?
Cubic Apple have provided and managed over a thousand fully costed energy saving recommendations to UK firms over the last 5 years. Our analysis indicates that large businesses can cost effectively save around 15% of their energy expenditure through efficiency measures, with an average internal rate of return of 44% and payback within three years .In many cases savings can be even higher. It is not uncommon in our experience to see reductions of as much as 25% to 30%.
These savings can be achieved through readily available and well-established technologies in areas such as lighting and heating, provided that the technology is properly specified and installed correctly. We encourage all businesses to proactively manage their energy in order to enjoy the cost and environmental benefits of eliminating avoidable energy wastage and a reduction in carbon emissions. How can Cubic Apple help? Cubic Apple are not merely completing a tick box exercise but genuinely helping our clients reduce energy consumption ultimately benefiting the bottom line.
We are uniquely placed to help organisations comply with the ESOS regulations and go beyond compliance to take advantage of the business opportunities in energy efficiency. In response to the concerns raised by many organisations with regards to ESOS, Cubic Apple have assembled a comprehensive suite of services to assist companies to prepare adequately and effectively for compliance and to maximise the potential benefits. These services can be customised to match an organisation’s individual situation and have been designed with an affordable entry level service to assist and guide each individual client through to the ESOS audit and full compliance.
How to comply?
Cubic Apple will help in every facet of ESOS compliance, the following bullet points outline the key steps to be taken to meet the current legislation and avoid and harsh financial penalties.
- Establish boundary for ESOS and develop a robust strategy for compliance
- Measure your total energy consumption for buildings, industrial processes and transport
Identify areas of significant energy consumption, accounting for at least 90% of your total energy consumption
- Appoint a ‘Lead Assessor’ to sign-off the ESOS Assessment
Identify cost-effective energy efficiency recommendations for areas of significant energy consumption or use existing activity as a route to compliance
What are the penalties for non-compliance?
The Environment Agency has the authority to apply civil penalties against an organisation/group found to be required to participate in ESOS and found to be non-compliant, Penalties include.
- Public disclosure of non-compliant
- Financial penalties upward of £50,000
Avoid any costly fines and speak to our energy advisors today to arrange an ESOS Compliance meeting. We can clearly demonstrate compliance strategies as well as genuine cost reductions plans for your organisation.