Energy use by larger organisations can no longer go under the radar of the government. Unlike commercial ventures, driving down domestic usage remains a matter of personal responsibility to reduce direct household costs. Conscious of a lack of accountability for more commercial applications of energy consumption, the government has introduced a new assessment framework to ensure energy assessment becomes a key part of business operations.
The Energy Saving Opportunity Scheme (ESOS) was introduced by the government in 2014 as a mandatory energy assessment scheme for larger workplaces. The focus is not to increase bureaucracy when it comes to energy usage, but to ensure accountability in larger organisations to continuously assess energy output as a regular part of business planning.
The scheme, which is now in the third phase of its four-year cycle, has been successful in ensuring energy use is a matter for senior leadership to take responsibility for. But how does it apply to your organisation?
Is my workplace Eligible?
The ESOS scheme is designed to assess energy use every four years. There are two main ways that an organisation needs to take part. Firstly, if they have over 250 members of staff or if they have a turnover exceeding £44.8m (50 million euros) or a balance sheet of over £38.5m (43 million euros) annually.
Organisations based overseas but with a UK presence of over 250 employees based in the UK are also required to join the scheme. Overseas ventures are excluded from ESOS energy audits but will have to comply with local legislation if based within the EU. Otherwise, ESOS is a mandatory assessment for all organisations which fall into any of the above categories.
How could ESOS Benefit Businesses?
There are a number ESOS goals that are designed to benefit businesses. The audit, completed every four years, is principally aimed at increasing energy efficiency across any organisation. Greater energy efficiency will lead to lower energy costs which can positively impact profits. Energy efficiency is not just about boosting profits, however, it can also increase competitiveness across certain sectors as well as contribute towards the sustainability credentials and environmental strategy of an organisation.
By providing support and structure to organisations to complete mandatory ESOS audits every four years, the government is encouraging businesses to put energy usage and efficiency at the forefront of their business operations and planning agenda.
What does ESOS require?
ESOS assessments must be carried out by registered and qualified individuals (a full list of assessors can be found on gov.uk). Compliance must also be verified by a Lead Auditor and signed off by a director or board member of the organisation. The ESOS assessment period covers a full 12 months and covers three main areas. Firstly, organisations are required to measure energy consumption across the full operation of a business, including buildings and facilities, transport and associated industrial activities. Secondly, using the data from the assessment, identify energy efficiency recommendations that would create a more cost-effective usage reduction. Finally, you must notify the Environment Agency of compliance in the ESOS scheme by the appropriate deadline.
ESOS runs in four yearly phases. To check deadlines and assessment / qualification dates please visit the ESOS information page on gov.uk. It is worth noting that whilst the assessment is mandatory, organisations are not required by law to act on the recommendations in the ESOS report to reduce energy usage or improve energy efficiency. However, organisations who choose not to act on such suggestions will not be able to access the cost-savings such efficiencies can bring.
Want to find out more about how ESOS and your business? Why not speak to the energy consultants at www.consultivutilities.com today?