Energy Savings Opportunity Scheme (ESOS)
Why choose Wattcraft for your ESOS assessment?
There are those who sell ESOS services by offering the minimum required to comply. This can suit some clients who are happy with a commoditized package that enables them to meet the short term objective of avoiding the penalty.
Wattcraft offers something more than this as a specialist energy consultancy. If you are interested in turning your ESOS assessment into a real opportunity for saving energy in your organisation, then Wattcraft can help you move on with delivering the energy improvements.
Wattcraft can provide you with qualified ESOS Lead Assessor sign-off as well as empowering you to put the recommendations into action and make genuine savings.
ESOS is focused on energy efficiency and indeed reducing the demand for energy should always be a priority. However working with Wattcraft you will have the opportunity also to assess the potential for renewable energy measures, either in parallel with, or following on from the assessment of the energy efficiency measures required for ESOS. This will help you establish the overall most cost effective and high impact energy measures for your organisation.
What is ESOS?
ESOS is a mandatory energy assessment scheme administered by the Environment Agency for organisations in the UK that meet the qualification criteria.
When is the ESOS deadline?
Organisations must notify the Environment Agency by a set deadline that they have complied with their ESOS obligations.
The deadline for this year is 5 December 2015, by which all qualifying organisations must carry out their ESOS assessment and notify the Environment Agency.
If your organisation cannot comply by the 15th December and expresses this to the Environment Agency, then an extension until the 29th January may be allowed.
It is now past the 29th January, but if you still have not complied, then you give this priority and get it done straight away – this is likely reduce the chance of penalisation by the Environment Agency.
What happens if you miss the ESOS deadline?
Failure to comply with ESOS by the deadline may result in the following penalties:
- A fixed penalty of up to £50,000
- AND/OR an additional £500 for each day additional day of non-compliance, up to a maximum of 80 days
- AND/OR Publication of details of non-compliance by the compliance bodies.
What energy use is within the scope of ESOS?
Generally all energy that is both supplied to and consumed by your organisation is within the scope of ESOS. However you are allowed to exclude 10% of your total energy consumption from any audit or alternative compliance measures.
The 10% exclusion can be on the basis of:
- organisational group (excluding the energy consumption of one or more undertakings)
- sites (excluding the energy consumption of more than one site)
- fuel (e.g excluding transport fuel if it comprises less than 10% of overall energy consumption
What do you have to do to comply with ESOS?
For organisations with an ISO 50001 energy management system
If your organisation has an ISO 50001 energy management system covering all your energy use at the compliance date, then this counts as your energy assessment. You then need a board director to confirm that your organisation is compliant based on the findings of your ISO 500001 certification and make a corresponding notification to the Environment Agency.
For organisations without an ISO 500001 energy management system
If your organisation is subject to ESOS and you do not have an ISO 500001 energy management system in place, then you must carry out audits of the energy used by their buildings, industrial processes and transport to identify cost-effective energy saving measures. These assessments have to be repeated every 4 years.
You need to appoint a qualified ESOS Lead Assessor to sign off your compliance. Rupert Blackstone of Wattcraft is a qualified ESOS Lead Assessor and can help you through this process.
Is your organisation subject to ESOS?
Your organisation is subject to ESOS if it qualifies as a large undertaking on the qualification date. For the first compliance period, the qualification date is 31 December 2014.
A large undertaking is a UK organisation that:
- employs 250 people or more
- AND/OR has an annual turnover greater than 50 million Euros and an annual balance sheet total in excess of 42 million Euros
Where can ESOS lead?
ESOS is focused on energy savings, which should always be a priority in accordance with the Energy Hierarchy (avoiding energy consumption before considering sustainable sources of energy supply). However, it makes sense to consider more sustainable energy supply options (including renewable energy) alongside ESOS requirements, as with limited finances to invest in improvement measures, there is a threshold beyond which energy supply improvements give a more favourable yield in cost terms than energy efficiency measures. For example, increasing thickness of insulation has diminishing energy and cost benefits and there comes a point whereby combined heat and power , heat pumps or biomass heating may become a more attractive proposition than further increase in insulation.
The output of ESOS gives a ranking of energy efficiency measures in lifecycle cost terms, but when taking sustainable/renewable energy supply options into account, this priority and what you might do in reality if you are interested in making real savings, might change. Wattcraft, with expertise in sustainable energy supply, can help you work out what the appropriate balance will be and then support you in the delivery of the most attractive options.
Wattcraft is an engineering organisation, which means that technical rigour will be applied to your energy assessment and there will be a focus on what is practical and able to be delivered based on your resource constraints.
Please contact us to find out how we can help you with meeting your ESOS obligations. We are based in Gloucestershire and can serve the whole of the South West and nationwide, according to specific requirements.