Energy management and compliance with ESOS legislation - Global Banking & Finance Review
An informative visual depicting the significance of the Energy Savings Opportunity Scheme (ESOS) and its impact on energy management for large enterprises, relevant to the upcoming compliance deadline.
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IGNORE ESOS AT YOUR PERIL – EMEX PROVIDES ANSWERS

Published by Gbaf News

Posted on October 3, 2014

3 min read
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The introduction of the Energy Savings Opportunity Scheme has been a long time coming, with information being drip-fed into the market place for some time. However, 5 December is the deadline that large enterprises have been given to ascertain whether or not they are in scope of the legislation: it’s approaching fast. Following this phase, enterprises will then have to assess their overall position on energy consumption over the next year. The legislation derives from the EU Energy Efficiency Directive (EED) that came into force 4 December 2012.

Key Features of the ESOS Directive

This update identifies the key features of the directive and the government’s proposed light-touch approach to its implementation.

Those interested in the detail can find the key requirements for ESOS in Article 8 and the associated Annexes of the EED. Those who have not read the directive cover-to-cover will be interested in attending the Environment Agency briefing and the “Practical Implications of ESOS” expert panel, to be held on 19 November at EMEX, The Energy Management Exhibition, Excel London 19-20 November 2014.

Permanent Energy Manager Roles and Opportunities

The legislation will almost certainly increase the need for enterprises to appoint permanent energy managers — a role facility managers are ideally placed to take up having been provided with the appropriate training.

Certainly the numbers support this case. According to the Department of Energy and Climate Change the assessments will cost approximately £17,000 in the first instance and £10,000 for each subsequent assessment. However each business could save on average £56,400 per year.

Guidance on ESOS Compliance and Deadlines

Jo Scully, the Environment Agency’s ESOS Project Manager, will explain how organisations can meet the compliance deadline and how compliance is to be evidenced. Guidance will be given on the importance of maintaining records, training and the role of approved “lead assessors” in carrying out or signing off ESOS assessments. Following Jo, an expert panel led by the Energy Managers Association and The Energy Institute will discuss ESOS’s practical effects and how to make the scheme work for your business.

“This panel session is ‘required listening’ for all organisations that will be affected by ESOS and forms a good introduction to the legislation while at the same time allowing attendees to ask questions”, says Lord Redesdale CEO of the Energy Managers Association.

Resources and Case Studies at EMEX

Alternatively The Environment Agency has produced a helpful 90 page guide. This and much more, including exclusive case studies, presentations and panel sessions, will be showcased at EMEX.

Key Takeaways

  • ESOS derives from Article 8 of the EU Energy Efficiency Directive requiring energy audits for large enterprises
  • Deadlines are approaching: initial notification by 5 December 2015 and recurring phases introduce mandatory action plans and annual updates
  • ESOS audits may cost ~£17,000 initially and ~£10,000 subsequently but deliver average savings of ~£56,400/year
  • Compliance requires skilled lead assessors and robust documentation including records and evidence packs
  • Phase 4 introduces action plans and progress reporting via the EA’s MESOS portal, with deadlines in December 2024–2027

References

Frequently Asked Questions

What is ESOS?
ESOS (Energy Savings Opportunity Scheme) is a UK‑mandated energy audit scheme implementing Article 8 of the EU Energy Efficiency Directive for large enterprises.
What are the compliance deadlines?
Initial notification was required by 5 December 2015; Phase 4 action plans were due by 5 December 2024 (or 5 March 2025 in some cases), with progress updates due in December 2025 and 2026, and full compliance by 5 December 2027.
What are the costs and benefits of audits?
Audits cost approximately £17,000 initially and £10,000 subsequently, while businesses could save on average £56,400 per year.
Who carries out the audits?
Audits must be conducted or signed off by approved lead assessors, with compliance evidenced via documentation and records.
What’s new in Phase 4?
Phase 4 introduces mandatory action plans and annual progress reporting via the MESOS portal, and removes previous compliance routes like DECs and GDAs.

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