Energy Savings Opportunity Scheme (ESOS) – New Auditing Legislation

The UK Government has launched the Energy Savings Opportunity Scheme (ESOS), a mandatory energy auditing program for large businesses, under what was previously the Department of Energy and Climate Change (DECC). Now administered by the Department for Business, Energy and Industrial Strategy (BEIS), ESOS aims to help companies identify cost-effective energy-saving measures.

Does ESOS Apply to Your Organisation?

Your business must comply with ESOS if it qualifies as a ‘large undertaking’ and meets at least one of the following criteria:

1. The organisation has more than 250 employees in the UK.

2. It has fewer than 250 employees but meets both of the following:

   • Annual turnover exceeding £45 million, and

   • Balance sheet exceeding £38 million.

3. The business is part of a corporate group that includes a large undertaking.

How to Comply with ESOS

• Work with a Lead Assessor: ESOS participants must appoint a qualified Lead Assessor. The Lead Assessor, certified by a professional body approved by the Environment Agency, will conduct or review the ESOS Assessment, focusing on areas of significant energy consumption.

• Energy Audits: The ESOS audit will examine at least 90% of the organisation's total energy usage, ensuring that the assessment identifies major opportunities for energy savings. It is crucial to ensure that the audits are proportionate and cost-effective.

• Alternative Compliance Routes: If your organisation already holds certifications such as ISO 50001, Display Energy Certificates (DECs), or Green Deal Assessments (GDAs), these can be used to demonstrate compliance with ESOS, provided they cover the necessary areas of energy consumption.

Next Steps

If you believe your organisation meets the qualification criteria, it’s important to begin the compliance process. Contact us to arrange a free consultation, where we will explain the implications of ESOS and how our streamlined auditing process can help you achieve compliance at a fraction of typical costs.