Large UK Businesses will be required to report on their annual total energy consumption across their buildings, transport and industrial activities, and identify cost effective energy saving measures, by December next year, following the publication of final regulations by the government.
The first reports under the Energy Savings Opportunity Scheme will be due by 5th December 2015 in respect of energy usage over a consecutive 12 month period starting no earlier than 1 January 2014 and ending before 5th December 2015. The ESOS, which is being developed as part of the UK's responsibilities under the EU's Energy Efficiency Directive, will apply to 'large enterprises' which meet certain employee, turnover and profit thresholds.
Energy minister Greg Barker said that the scheme "could benefit the UK as a whole by up to £1.6 billion, with the vast majority of this being felt directly by businesses through lower bills."
"ESOS aims to multiply existing good energy management practice ensuring that businesses which are already seizing their own energy saving opportunity can comply easily building on current work, while also providing an effective framework for less advanced companies to be regarded intentionally as a leader on energy efficiency," he said.
ESOS is aimed at all 'large enterprises' with 250 employees or more; or those with fewer employees which meet certain annual turnover and profit thresholds. It will apply to large commercial businesses and charities but not to public sector bodies, as these are subject to different energy efficiency requirements.
Firms will be required to carry out their first ESOS assessment of total energy consumption across a 12 month period by 5 December 2015 and to repeat the exercise every four years. In addition an energy audit is required which will analyse the consumption, identify ways energy efficiency can be improved, and recommend cost effective measures. Firms will not however be legally required to take up the recommendations of these energy audits. The recommendations should focus on 'those aspects of energy use that are within the participant's control2 - for example, a landlord would not be required to assess the energy use of tenants occupying part of their office space, according to the consultation response.
Compliance365 is an independent energy consultancy. We provide advice and guidance on all our services; how to save energy; how to save money on your energy bills; and ultimately how to become more energy efficient. Our aim is to be as cost effective and flexible as possible for our clients.
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