What is ESOS?

what is esos

The Energy Savings Opportunity Scheme (ESOS) is the Government’s response to the European Union’s Energy Efficiency Directive which came into effect in December 2012. The scheme requires large companies to produce detailed reports on the energy use and efficiency of their organisation every four years.

Is your business affected by ESOS?

ESOS applies to any company which is classified as a ‘large undertaking’; with more than 250 employees or a turnover of more than €50m and a balance sheet exceeding €43m. The business qualifies if it meets the criteria on 31 December 2014.

It is important to note that a company must carry out an ESOS assessment – even if it is not a ‘large undertaking’ – if it is part of a corporate group with another UK-based company which does meet the ESOS guidelines.

How does a business comply with ESOS?

The business must carry out an audit of 90% of its total energy usage for a one-year period. A qualifying company must also identify efficiency opportunities; evaluate these through lifecycle costs, store the data and inform their regulator (such as the Environment Agency or Natural Resource Wales). Companies are also encouraged to implement energy efficiency measures and produce annual reports; however this is not yet mandatory.