Energy Savings Opportunity Scheme

Business_people_planningThe Energy Savings Opportunity Scheme (ESOS) requires large companies to undertake energy audits including transport, buildings and industrial operations every four years.  This is in accordance with the EU Energy Efficiency Directive.  The first audit must be conducted by 5 December 2015. 

All companies with either 250 or more employees or those with less than 250 employees but an annual turnover exceeding €50 million (approximately £40 million) and a balance sheet exceeding $43 million (approximately £34 million) are in scope of ESOS.  Companies need to measure total energy consumption; conduct energy audits to identify cost-effective energy efficiency recommendations; report compliance to the Environment Agency (the scheme administrator)

  • At least 90 per cent of total energy consumption is subject to ESOS. 
  • Only fuel purchased by the company will be covered by ESOS. 
  • Sub-contracted transport is excluded.
  • There will be financial penalties for non-compliance.

An ESOS Lead Assessor will be required to conduct the audits. The Environment Agency has published its an approved list of public bodies that hold registers of Lead Assessors.  These assessors must meet the Publicly Available Specification (PAS) 51215 Energy Efficiency Assessment – Competency of a lead energy assessor.  

As of 8 October 2015, the Environment Agency announced that there will be a period of grace until 29 January 2016 for those companies encountering difficulties in meeting the EU deadline of 5 December 2015.  Additionally, for organisations committing to achieve compliance through ISO 50001 certification, enforcement action will not normally be taken as long as notification is received by 30 June 2016.  However, companies must notify the Environment Agency if they are delayed and must have evidence as to why they cannot comply in time.

How FTA can help

FTA’s Logistics Carbon Reduction Scheme  has been identified as a means for freight operators to compile data and take action to reduce carbon/energy usage for transport for ESOS.  The LCRS is free to join and open to any operator with at least one commercial vehicle. 

FTA also has an ESOS Transport Audit Offering, complete and return the form for further information or contact Karen Packham, General Manager - Consultancy and Tendering.

More information on the ESOS requirements are available in FTA's ESOS briefing note (members only)

DECC has also published guidance on the ESOS plus informal guidance on the approaches to audits

Use the following link to access the Environment Agency's ESOS notification system