Energy Savings Opportunities Scheme (ESOS) micro-guide

What is its purpose?

Encourage large enterprises to identify and explore opportunities to reduce energy consumption.

Does it affect me?

Yes, if:

You meet the criteria for company size if you employ over 250 employees

or

You have an annual turnover exceeding €50 million and an annual balance sheet exceeding €43.

What do you need to do to comply?

You need to measure your energy consumption and complete and audit that identifies cost effective energy saving measures and inform the Environment Agency. There are specific criteria that need to be met, if you do need to comply read the EEF guide.

What are the consequences for not complying?

You could face a fine of up to £50,000.

Look at recouping the investments you’ve made in completing the ESOS process by implementing some of the cost effective energy saving measures that the audit identified.

What can you do to minimise the impact?

You can essentially bypass ESOS if you already have a certified ISO50001 Energy Management System (EnMS) and this accounts for at least 90% of your total energy consumption.  Then all you’ll need to do is inform the Environment Agency and its job done.

If you don’t already have an EnMS you could look to putting in place ISO50001 it will help address your energy costs and prepare you for 2018/19 should ESOS come around again (subject to policy changes).

The other route you can take to minimising the impact is to look at recouping the investments you’ve made in completing the ESOS process by implementing some of the cost effective energy saving measures that the audit identified. Our guide on ‘what to do after your audit’ can help you prioritise and see which ones you should implement so you can make sure the time and investment made was worthwhile.

How can EEF help?

For help and guidance on carbon and energy legislation, call 0808 168 5874.

 See the rest of our microguides and other advice on carbon and energy compliance issues.

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