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esos report

ESOS: Early impact looks positive

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The UK’s Energy Savings Opportunity Scheme (ESOS) was established to help ensure that the UK is doing its bit to help meet the EU’s 20% energy saving target by 2020, as required by the 2012 Energy Efficiency Directive.

ESOS is mandatory for large organisations in the UK with more than 250 employees, turnover in excess of €50m and an annual balance sheet total of €43m, and there are similar country-specific schemes across Europe.

ESOS operates in four-yearly compliance phases, with phase 2 now underway (with a compliance date of 5 Dec 2019).

In October 2017, the Department for Business, Energy and Industrial Strategy published an interim process and early impact evaluation report following the completion of phase 1 of the scheme.

Energy efficiency measures

The report reveals a largely positive picture, particularly when it comes to the stimulation of take up of energy efficiency measures, with four in five (79%) of complier organisations reporting some form of energy efficiency improvement in the 18 months prior to mid-2016.

In turn, a third (33%) of these organisations reported ESOS to have been influential in their decision to implement at least one of their improvements.

As an accredited ESOS lead assessor, at EECO2 we are also starting to see results from ESOS-initiated projects, with a recent assessment at one site, for example, revealing a huge potential annual energy saving of 2.5 million kWh, at an approximate cost saving of £180,000.

ESOS assessment timing

One slightly less positive finding of the report was that many organisations had delayed their compliance activity until close to the deadline, resulting in higher costs for assessor services than may have been the case if demand had been smoothed over the course of 2015.

It was also the case that by 5 December 2015, the scheme administrator, the Environment Agency, had received approximately: 4,000 compliance notifications and 2,500 intent to comply late notifications.

EECO2 is encouraging any business that requires support in phase 2 ESOS compliance to engage with us early in order to help avoid availability or timing issues closer to the deadline.

We understand that multiple sites across multiple countries can represent a lengthy and complex path to regulatory compliance, but our expertise in international energy management means that we can manage this process for you smoothly and efficiently.

To find out more about our tailored packages for EED/ESOS compliance click here – or contact us today for an informal chat about your requirements.


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