KGM Energy Brokers - eProcurement with Attitude

ESOS Compliance

The Energy Saving Opportunities Scheme, also known as ESOS, is a new mandatory programme of energy audits for large enterprises in the UK.

The ESOS Regulations aim to promote better energy management and reduce the UKs exposure to rising energy costs.  Auditing a large undertaking can be expensive and laborious, if it is badly managed. But ESOS also offers an excellent opportunity to make cost savings. With the right advice, you will find that implementing just a few of the recommended energy efficiency measures will easily recoup the cost of the ESOS assessment.

 

 

Is my organisation affected?

If you have 250+ employees, or a turnover above €50m and a balance sheet of €43m then you have to comply with ESOS. Charities and businesses are affected, but public bodies are not.

 

When must I comply?

You must report compliance by 5 December 2015 and every 4 years thereafter. You need 12 months data though,  so you need to start preparing now.

 

What must I measure?

You must measure all your energy consumption including transport, buildings and industrial processes. You must also prepare a list of recommendations to reduce your energy consumption. You’ll need to appoint a  Lead Assessor to oversee the process.

 

Will an auditor have to visit all of my sites?

Not always. In some cases, alternative methods of compliance can be used and existing data can help. Seek advice to ensure you have a cost-effective compliance strategy.

 

What are the penalties for non-compliance?

You can be fined up to £50,000 for failing to comply.

 

What needs to be done to comply with ESOS?

 1) Appoint a qualified Lead Assessor to oversee and sign off ESOS compliance

  • Lead Assessors usually work for companies involved in ESOS compliance

 2) Prepare your energy data for ESOS compliance

  • 12 Months energy consumption has to be prepared covering all sites.
  • The 12 month period must include 31st December 2014.
  • Energy Consumption data may either by kwh or ££.
  • Energy Consumption include gas, electricity, fuel oil and also transport.
  • Only energy that is paid for by your organisation needs to be measured.
  • Sites representing 5% of total energy use need not be included (smallest energy consumers).

 3) Carry out Energy audits

  • To minimise cost, it is advisable to split sites into groups by functionality (accommodation/office etc).
  • For the sites that do not receive energy audits, Lead Assessors require data questionnaires to be completed giving detailed information of how energy is used at each site.
  • The results of the energy audits may then be extrapolated against similar sites with similar function.
  • Lead assessors are generally happy to sign off ESOS compliance if energy audits are carried out on site numbers based on 'the square root' of site numbers within each group, as this is considered to be a representative sample for each group. So if there are 100 sites in a group, 10 of these would have to have energy audits.

4) Timetable

  • ESOS compliance must be achieved by December 2015.

5) Cost

  • Energy audits cost an estimated £500 per site, but this cost may be reduced with effective preparation and tendering via eAuction
  • The compiling of the report must also be paid for, but cost may be minimised by tendering the ESOS compliance work. Tendering will require full details of sites/energy use/functionality etc.
  • Estimated cost for ESOS compliance over 100 sites,  is around £10,000 excluding VAT, but we may be able to assist you in reducing this

Call us now to discuss ESOS compliance. We are independent of any ESOS compliance company and always happy to assist.


Use the KGM Energy Brokers enquiry
form to contact a member of the
KGM Energy Brokers team
regarding your area
of interest

Or call us NOW on 01932 264658