We have by now all heard of ESOS, but I think many of us are still a little unsure about exactly what this means to our business.
So what is it?
ESOS is the UK’s response to Article 8 of the European Commission’s Energy Efficiency Directive. The aim is to cut carbon emissions by requiring large businesses to identify energy reduction measures and make energy savings. Thousands of UK organisations will be affected by the scheme.
So who does it apply to?
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 incorporated groups, if any part of the group qualifies for ESOS, then the whole group must comply, including any SME’s (small and medium sized enterprises).
What does it actual mean ?
Under the scheme, approved assessors will carry out ESOS compliant energy audits to identify cost-effective energy savings opportunities in participant buildings, industrial processes and transport.
It is estimated that around 7,300 large UK enterprises occupying between 170,000 and 200,000 buildings (of which 8,000 to 10,000 are industrial plants) will be covered by the legislation.
The Government estimates that the average large company should realise savings worth £56,400 per year on energy bills as a result of implemented ESOS improvement projects. Energy reductions within large industrial sites can be substantially greater, representing between 20%-40% reductions in energy consumption.
This basically means that large businesses will have to measure their energy consumption over a 12 month period, and they must determine areas of significant energy consumption. An energy efficiency specialist can help them to get the best results from the audit.
And for smaller companies
At present there are no plans to extend ESOS into smaller companies BUT considering this can make huge savings for a company of any size, and can help reduce global carbon emissions ……. Why not consider what your company can do too?
For more information about ESOS :