All you need to know about… Energy Savings Opportunity Scheme (ESOS)

The Energy Savings Opportunity Scheme (ESOS), part of the EU Energy Efficiency Directive, is a mandatory energy assessment scheme designed to help large enterprises meet their environmental commitments and benefit from cost savings. Organisations are encouraged to review how energy is being used within the organisation by their buildings, industrial processes and transport, and then identify practical, cost-effective savings opportunities in these areas. The Department of Energy and Climate Change estimates that ESOS could deliver £1.6bn net benefits to the UK, the majority of which will be felt directly by UK businesses as a result of energy savings.

Who does it affect?

ESOS applies to organisations defined as ‘large undertakings’ that meet the following qualifying criteria:

  • 250 or more employees
  • An annual turnover in excess of 50 million Euro (£38,937,777) and an annual balance sheet total in excess of 43 million euro (£33,486,489)
  • An overseas company with a UK registered establishment which has 250 or more UK employees (paying income tax in the UK)

We qualify. What do we do next?

If you qualify for ESOS and your organisation is not fully covered by ISO 50001, you need to carry out an ESOS assessment. For your assessment, you need to:

  • Assess your total energy consumption
  • Identify your areas of significant energy consumption
  • Appoint a lead assessor
  • Notify the Environment Agency
  • Keep records of how you have complied with ESOS

Click here for more information on these stages.

If you qualify for ESOS and your organisation is fully covered by ISO 50001, there is no need to carry out an ESOS assessment. You just need to notify the Environment Agency that you are compliant with ESOS.

Notification of compliance

Having completed the ESOS assessment (where appropriate), the next step is to submit a notification of compliance to the Environment Agency. The deadline for compliance is 5 December 2015.

If you qualify for ESOS but cannot submit a notification by the deadline, you must still notify the Environment Agency by 5 December 2015.

Qualifying organisations that do not complete and notify a compliance assessment by 5 December 2015 will be in breach of the regulations and at risk of enforcement action and penalties.

Enforcement action will not normally be taken provided your notification is received by 29 January 2016. For organisations committing to achieving compliance through ISO 50001, enforcement action will not normally be taken as long as notification is received by 30 June 2016.

Who carries out the ESOS compliant energy audit and assessment?

Organisations can choose to appoint an in-house ESOS lead assessor or use an external consultant to carry out, oversee or review energy audits and ESOS assessment. The person completing the assessment and report must either be, or become, a member of an approved professional body register.

What should an energy audit involve?

The audit should chart energy trends over time and calculate the energy intensity ratio of energy use per employee.

An ESOS compliant energy audit must meet these requirements:

  • It must be based on 12 months’ verifiable data
  • It must analyse the participant’s energy consumption and energy efficiency
  • It must identify energy saving opportunities

Any recommendations for savings should include the estimated costs and benefits of implementation. Calculating the cost of implementing a measure should be based on an analysis of whether the investment will be economical over its entire life and would include taking into account the cost of purchase, installation, maintenance and depreciation.

How often do energy audits take place?

Organisations that qualify for ESOS must carry out ESOS assessments every 4 years.

How will ESOS benefit me?

ESOS does not require participating organisations to implement the recommended energy saving measures, but it does encourage major energy savings in companies throughout the UK. With around 20 per cent of a company’s annual energy usage currently wasted through inefficient practices, according to figures from the Carbon Trust, ESOS has the potential to influence energy management and behaviour, improving the profitability of organisations and reducing energy demand and carbon emissions across the UK.

How can Remeha Commercial help?

Heating and hot water is the largest single end-user of energy in a building, so a good starting point for efficiency measures.

For the UK’s high percentage of old buildings, investing in high-efficiency condensing boiler technology is an excellent cost-effective measure. Replacing inefficient or ageing non-condensing boiler plant with super-efficient, fully-modulating condensing boilers can cut gas consumption and carbon emissions by around a third, transforming the energy performance of a building.

A pioneer of condensing technology, Remeha Commercial leads the commercial market with a comprehensive range of high-efficiency, low-NOx, wall hung and floor standing condensing boilers offering individual outputs from 9 kW to 1303 kW. With 80 years in heating technology and a reputation for quality, high performance and reliability across our products and services, we are ideally placed to recommend and supply the most appropriate heating solution to meet each organisation’s individual requirements.

For more information on ESOS, visit:

To find your local Remeha Commercial Area Sales Manager, click here.

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