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UK Energy Savings Opportunity Scheme

The Energy Savings Opportunity Scheme (ESOS) was created by the UK Government in order to implement Article 8(4-6) of the EU Energy Efficiency Directive 2012, and came into force from July 2014 through the Energy Savings Opportunity Scheme Regulations 2014.  The Directive requires member states to introduce mandatory energy audits for all ‘large enterprises’.  Public sector bodies are not in scope of ESOS.

ESOS requires all undertakings which fall under the definition of ‘large enterprises’ to audit their energy use in four-yearly cycles.  These undertakings must calculate their total energy use, and then audit that use (subject to some exceptions) in each cycle.  The audit must be carried out or reviewed by an approved assessor, who must analyse the undertaking’s energy consumption and energy efficiency, and identify reasonably practicable and cost effective ways in which they can improve their energy efficiency.

Participants will be required to notify the scheme administrator – the Environment Agency – that they have complied with the scheme by providing certain prescribed information.  Compliance with ESOS will be monitored by a number of bodies – in Scotland by the Scottish Environment Protection Agency (SEPA), determined by the location of the relevant undertaking, and those compliance bodies will have powers to require information and carry out inspections to monitor compliance.  They will also have the powers to impose penalties, including financial penalties for non-compliance.

By 5 December 2015 qualifying organisations must carry out their ESOS assessment and notify the Environment Agency.

Participants must then carry out an ESOS assessment in each subsequent 4-year compliance period, ending on 5 December 2019, 2023 and so on.

Further Information

The Energy Savings Opportunity Scheme Regulations 2014

UK Government Guidance on ESOS