Last Updated on October 24, 2022 by Ossian Muscad
Running a business involves a lot of energy consumption. For example, the energy could be in the form of electricity to power your machines or heat to keep your office warm. You might not realize it, but there are ways to save energy and money on your energy bills. One way is through the Energy Savings Opportunity Scheme (ESOS).
This guide will help you to understand the energy savings opportunity scheme (ESOS) and how it works. You will also learn about the requirements for businesses to participate in ESOS and the benefits of doing so.
What is the Energy Saving Opportunity Scheme (ESOS)?
The energy saving opportunity scheme (ESOS) is a mandatory energy efficiency scheme for organizations with more than 250 employees or an annual turnover of more than €50 million. The scheme was introduced in December 2014 as a way of helping businesses to reduce their energy consumption and save money on energy bills.
The Environment Agency administers the scheme, and businesses must submit an ESOS assessment every four years. Under the scheme, businesses must conduct an energy audit every four years and take action to improve their energy efficiency. The first compliance period ran from December 6, 2014, to December 5, 2015, and the second compliance period was from December 6, 2018, to December 5, 2019.
Is ESOS still required?
Yes, the energy saving opportunity scheme (ESOS) is still required for businesses that meet the eligibility criteria. In addition, overseas companies have a UK-registered establishment with over 250 employees. Higher Education Institutions (HEI) that are large enough to meet ESOS qualification criteria are also eligible for ESOS.
How To Qualify for ESOS?
To qualify for ESOS, you have to achieve the following requirements:
- Maintain the qualification criteria, either number of employees (>250) or the annual turnover and balance sheet (>€50 million) for two consecutive accounting periods before December 31, 2022.
- Make sure to check and verify the annual financial statements from the year before you plan to qualify.
- Determine the average number of employees per month throughout that financial year.
You can also visit the official website to learn more about the energy-saving opportunity scheme (ESOS) and how it works. Once you’ve determined the exact requirements to qualify for ESOS, you can create and use an ESOS qualification checklist to determine if you qualify for this energy efficiency scheme.
What is the difference between ESOS and SECR?
ESOS and Streamlined Energy Carbon Reporting (SECR) are two energy efficiency schemes businesses can use to save energy and money. However, both schemes have distinct differences that set them apart.
For one, ESOS is limited to energy consumption. Meanwhile, SECR covers different types of environmental impact—their coverage includes biodiversity and ecosystem services, Greenhouse Gas (GHG) emissions, and energy efficiency actions.
ESOS and SECR are two different regulations, but there is some overlap between their requirements. There are also instances where organizations need to comply with both ESOS and SECR. If your business falls into this category, you must comply with both energy efficiency schemes.
How To Comply with ESOS
Qualifying for ESOS is just the first step—businesses must also comply with the energy efficiency scheme to avoid penalties. Keep in mind that ESOS compliance isn’t the same for all qualified businesses. However, ESOS compliance can be classified into three categories:
- Those with ISO 50001 Certification
- Those with zero energy supplies
- Those without ISO 50001 certification and zero energy suppliers
ISO 50001 Certification
Suppose the company’s Energy Management System (EnMS) encompasses energy usage under ESOS and has received ISO 50001 certification from an accredited certification body. In that case, they need to do the following to adhere to ESOS requirements:
- Have a board-level director review the findings of the ISO 50001 certification to ensure that the organization adheres to all standards set by ISO 50001. The board-level director should state that the information included in the notification is accurate.
- Since your organization has an ISO 50001 certified EnMS that covers their energy use under ESOS, you are already compliant with the Energy Savings Opportunity Scheme. You need to notify the Environment Agency of this fact.
Zero Energy Supplies
Zero energy supplies indicate that the organization doesn’t have physical assets or employees using energy. An organization that meets this requirement still needs to comply with ESOS requirements by doing the following:
- Request a board-level director to verify that the organization has no energy responsibility.
- Since they have zero energy supplies, they need to notify the Environment Agency that they are still ESOS-compliant.
No ISO 50001 Certification
Organizations with no ISO 50001-certified energy management system will need to conduct energy audits to identify energy efficiency opportunities. The energy audit must be conducted by a Lead Assessor accredited by the Environment Agency.
After the energy audit, businesses should develop and implement an energy efficiency action plan. This plan should aim to reduce energy consumption and energy costs. The energy efficiency action plan should be reviewed and updated every four years.
Carry Out an ESOS Assessment with DATAMYTE
Whether your organization has or lacks ISO 50001 certification, DATAMYTE can help you with energy efficiency audits and energy reduction studies. With the DataMyte Digital Clipboard, you can create comprehensive workflows focusing on energy efficiency and sustainability.
The DataMyte Digital Clipboard will let you streamline your energy efficiency efforts and also provide you with the ability to generate real-time energy reduction data.
The DataMyte Digital Clipboard is a workflow automation software that features tools such as a checklist and smart form builder. These tools will enable you to create useful energy efficiency workflows that will help you comply or re-comply with energy regulations such as ESOS.
With the DataMyte Digital Clipboard, you can attach energy reduction targets to your energy efficiency workflows. This will ensure that your energy efficiency efforts are aligned with your business goals.
Book a demo with us today to learn more about what the DataMyte Digital Clipboard can do for you and your energy efficiency compliance needs!
Conclusion
When it comes to energy regulations, organizations have a lot to consider. The energy landscape is constantly evolving, and new regulations are always being introduced. That’s why it’s so important to have a compliance solution to help you keep up with the latest energy regulations. With DATAMYTE, you have an all-in-one solution to your energy compliance needs. Get started today!
