your guide to esos...the energy saving opportunity scheme (esos) is a new mandatory government...

Your Guide to ESOSThe Energy Savings Opportunity Scheme

2 - Speak to an ESOS consultant today on T: 01455 883 250 or E: [email protected]

Green Deal Approved – UKAS Accredited Green Deal Assessor Certification Body

UKAS – UKAS Accredited Green Deal Assessor Certification Body

ABBE – ABBE Approved Training Centre offering the Display Energy Certificate qualification

City & Guilds – City and Guilds Approved Training Centre offering Non Domestic Energy Assessor and Green Deal Advisor qualifications

Ricardo-AEAWorking in association with Ricardo AEA energy professionals to offer ESOS training solutions

Speak to an ESOS consultant today on T: 01455 883 250 or E: [email protected] - 3

What is ESOS? The Energy Saving Opportunity Scheme (ESOS) is a new mandatory government scheme which affects up to 10,000 UK organisations, presenting a new energy auditing requirement. The scheme has been designed to increase industry’s awareness of energy consumption to make it easier for businesses to take action which will lower the rate of carbon emissions across the UK. The ethos behind the scheme is that reducing your energy consumption goes hand in hand with saving you money so that the costs of the ESOS audit itself are more than paid back if the identified energy saving measures are implemented.

Does ESOS apply to me? ESOS will apply to your company if: it has more than 250 employees OR an annual turnover exceeding €50m and a balance sheet exceeding €43m

For UK incorporate groups, if any part of the group qualifies for ESOS, then the whole group must comply, including any SME’s.

Do I qualify? Only undertakings and groups of undertakings can qualify for ESOS. An undertaking is defined as ‘(a) a body corporate or partnership, or (b) an unincorporated association carrying on a trade or business, with or without a view to profit’. As such, the scheme covers, but is not limited to, the following types of organisations in the UK: • limited companies; • public companies; • trusts; • partnerships; • unincorporated associations; and • not-for-profit bodies (where engaged in a trade or business – see the DECC ESOS Guide, September 2014, for further details). What do I need to do? Your first and most important action is to find out whether your business needs to comply with ESOS. If the answer is yes, then you should contact an ESOS Consultant as soon as possible to plan your first audit as this must be completed by 5th December 2015 and could take several months to pull together. Further ESOS audits will take place every four years from 2015 onwards. An approved ESOS Lead Assessor is responsible for working with you and the key parties in your organisation to identify opportunities to reduce energy costs and target energy waste, detailing those opportunities in your ESOS Report before the 5th December 2015 deadline. The audit will involve looking at how your business uses energy, including how energy is used in buildings, transport and industrial operations based on an analysis of energy data and site survey evidence.


Do other sustainability projects contribute towards ESOS compliance? You have a number of possible routes to demonstrate that energy savings assessments are being undertaken within your organisation. Your ESOS Lead Assessor will consider other audits undertaken within the compliance period where they meet the minimum requirements of an ESOS Audit. For example, work undertaken for the Carbon Trust Standard, Logistics Carbon Reduction Scheme and Green Fleet Reviews may be taken into account for the purposes of ESOS. In practice, the various routes to ESOS compliance include:

• ESOS Energy Audits • ISO 50001 Certification • Display Energy Certificates (DECs); and • Green Deal Assessments

What should I consider when selecting an ESOS Lead Assessor?In selecting an appropriate ESOS Lead Assessor to handle your ESOS Report you must consider:

• Is the ESOS Lead Assessor listed on a Government Approved Register.

• Does the ESOS Lead Assessor work alongside a team of auditors who are approved to recognised standards, for example ISO 50001 or other accepted UK schemes such as Display Energy Certificates (DEC) or Green Deal?

• Are you convinced that your chosen ESOS Lead Assessor is committed to achieving ESOS compliance and optimising energy and cost savings?

Remember, ESOS Lead Assessors offer varying degrees of experience in the different aspects of energy management audit covered by ESOS, concerning transport, industrial process and buildings. However, they will typically work within a team which brings experience and specialism in each of these areas to build a skill set reflecting the nature of your business.

How much could I save as a result of having undertaken an ESOS Audit? The government estimates that a typical ESOS audit is likely to cost between £5,000 & £50,000 depending on the size and complexity of your business. In real terms, the cost will always be a small proportion of your annual energy spend. Although the cost/benefit per ESOS participated is expected to vary significantly, the average bill saving per enterprise is estimated at around £35,400 from the initial audit, with net savings for businesses across the UK in the region of £1.6 bn1.

1 - Source: DECC Guide to ESOS Version 1.1 (September 2014) pg 69 paragraph 4 – 6.


What happens if my business does nothing?Doing nothing is not an option for organisations qualifying for ESOS as the Scheme’s compliance bodies are authorised to publically highlight and apply significant penalties against companies who fail to comply.

This could mean a fixed penalty of up to £5000 for failing to notify the Scheme Administrator of ESOS compliance, a fine of up to £5000 for failing to maintain adequate records which demonstrate compliance and additional penalties of up to £50,000 for failing to undertake the ESOS Audit.

Further fines of £500 per day will also apply from the day after the compliance deadline. An ESOS Lead Assessor will be able to advise you exactly what needs to be done by whom and when in order to ensure compliance.

What are the key dates for compliance? ESOS will operate in four-yearly compliance phases. Organisations in the UK must assess whether or not they are required to participate in ESOS on the qualification date of each phase. The qualification date for the first phase was 31st December 2014.

The last day of each compliance phase (the compliance date) is the date by which the participant must have undertaken the ESOS assessment and notified its compliance to the Environment Agency.

For the first phase, this means that activity to support your ESOS Assessment (such as Green Deal assessment or other qualifying energy audits) must have been undertaken between the 6 December 2011 and 5 December 2015 to be considered compliant. If you remain in scope of the scheme, you must then undertake ESOS assessments within each subsequent phase.

ESOS Phase Timings

Phase Qualification Date 4 Year compliance phase Compliance date

Phase 1 31st December 2014 6th December 2011 – 5th December 2015 5th December 2015




Can I train to become an ESOS Lead Assessor?An ESOS Lead Assessor can either be an external consultant or an in-house trained expert. However, anyone undertaking the role of an ESOS Lead Assessor must be a member of a government approved Register of Lead Assessors with full training and knowledge to carry out the ESOS Audit. Elmhurst Energy provides various routes to approval on its ESOS Register with training courses available for those with previous experience in professional energy assessment and energy auditing. See our training course details below:

Routes to ESOS Lead Assessor

New EntrantDisplay Energy

Cerficate Assessor*

Non Domestic Energry Assessor

Non Domestic Green Deal Assessor*

Experienced Energy Assessor/Auditor in alignment with PAS 51215 standards*

ESOS LEAD ASSESSOR

* With minimum 2 years relevant experience in line with PAS 51215 standards*


ESOS Lead Assessor – three day courseThis course is available to existing Display Energy Certificate Assessors, Non Domestic Green Deal Assessors and Energy Auditors with a minimum of two years’ experience.

ESOS Lead Assessor – one day courseThis course is available to CIBSE LCCs and Energy Institute CEM and RPECs who can provide evidence of their accreditation and can demonstrate sufficient PAS aligned skills.

Display Energy Certificate (DEC) Assessor [NEW ENTRANT] – two day courseDetailed training in the production of Display Energy Certificates for new entrants with no previous experience.

Display Energy Certificate (DEC) Assessor [APEL ROUTE] – one day courseThis is an industry standard route to Non Domestic Energy Assessor accreditation for individuals who have non domestic buildings experience relevant to the energy assessment industry and, who are able to document their involvement and experience of working in this field for at least two of the last five years.

Non Domestic Green Deal – four day courseWe offer a straightforward four day Green Deal Advisor training course for is individuals already qualified as Non Domestic Energy Assessors (NDEAs).

For more details regarding all of Elmhurst Energy’s ESOS related training courses, please visit: www.elmhurstenergy.co.uk/training-calendar

Training with Elmhurst Energy


YES

YES

NO

NO

Figure 1: Key steps to complying with ESOS

Are you in scope of ESOS?

Is all your energy consumption covered by an ISO 50001 Energy Management System?

Measure your total energy consumption (in units of energy or energy expenditure)

Determine your areas of significant energy use(at least 90% of total spend / use)units of energy

or energy expenditure)

Consider the ESOS compliant assessment routes available to cover your areas of

significant energy use

Appoint a Lead Assessor to undertake / reviewESOS energy audits – ensure all areas of

significant energy use are covered by an ESOSaudit or an alternative route to compliance

Report on your compliance with ESOS to theScheme Administrator by the Compliance Date

1 You are encouraged tostill consider voluntarily

undertaking energyaudits and proactive

energy management.Doing so could help saveenergy and cut your bills.

2

3

4

5

6

7


“Getting the right qualified Lead Assessor could help the organisation achieve far more in terms of potential energy savings, above and beyond compliance with ESOS.”

Elmhurst Energy Systems Ltd. 16, St Johns Business Park, Lutterworth, Leicestershire, LE17 4HB

© Copyright 2015 Elmhurst Energy Systems Ltd

Speak to an ESOS consultant today on 01455 883 250or email [email protected] This guide is produced by Elmhurst Energy Systems Ltd as a summary to help you understand ESOS. For the complete guidance produced by DECC visit www.gov.uk/energy-savings-opportunity-scheme-esos

Elmhurst Energy Services Ltd. 16, St Johns Business Park, Lutterworth, Leicestershire, LE17 4HB

your guide to esos...the energy saving opportunity scheme (esos) is a new mandatory government...

Documents