What is ESOS Phase 2
The Energy Savings Opportunity Scheme (ESOS) is a UK Government policy, derived from the EU Energy Efficiency Directive, which requires mandatory business energy audits.
Who does ESOS Phase 2 apply to?
ESOS affects organisations that:
- employ at least 250 people, or
- have an annual turnover in excess of €50m (approx. £39m) and a balance sheet in excess of €43m (approx. £33.5m).
- the qualifying date was 31st December 2018.
EDIE advises that the criteria for needing to comply with ESOS can be confusing, and that it is advisable to contact the Environment Agency, which runs the Scheme, or work with experienced consultants, if you have any doubt about whether your organisation qualifies for the Scheme.
What does a qualifying company need to do?
To be compliant companies should:
- Measure Total energy consumption (building, industrial processes and transport)
- Conduct audits to identify energy efficiency opportunities (Lead energy auditors)
- Report compliance to their national scheme administrator.
The reporting deadline is 5th December 2019.
Alternatively, companies may also comply if they can provide evidence they have achieved certification to ISO 50001 (either version of ISO50001 is acceptable to the EA)
What if I don’t comply?
The Environment Agency reported that in England there were around 500 organisations that qualified for ESOS in the first phase but had not engaged with the scheme. This has resulted in over 300 enforcement notifications sent out to date, with more to come. Civil penalty proceedings have now been commenced against a number of non-compliant organisations.
What will it cost?
EDIE suggest that the costs of becoming ESOS compliant will largely depend on the scale and energy usage of the qualifying organisation. It estimates that ESOS costs will approximately range from £6,000 to £15,000, but could be higher for larger, multi-site or energy-intensive organisations.
The information provided by the author is intended for guidance only and companies should consult either the ESOS Regulations or the national scheme administrator before committing to a plan of action.