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Is your business ready for phase 2 of the ESOS Scheme?

Published by Jason Koffler on 31 July 2017

If you’re part of a large business in the UK, you will be affected by the mandatory Energy Savings Opportunity Scheme (ESOS) regulations. This government scheme requires all businesses with over 250 employees or a turnover of over 50 million euro to audit the energy used in their building and identify energy efficient measures that could be implemented.

What is ESOS?

The ESOS regulations are a mandatory energy assessment scheme requiring large UK organisations to measure their total energy consumption and identify energy efficiency opportunities. Administered by The Environment Agency.
ESOS is now in Phase 2, requiring businesses to assess whether they are required to participate by 31 December 2018.

Organisations that qualify for ESOS must carry out ESOS assessments every 4 years. These audits examine not on the energy use of your buildings, but also industrial processes and transport to identify cost-effective energy saving measures across the business.

What does ESOS mean for my business?

Even though it is mandatory and might seem like excess administration and work, there are massive advantages in complying with the scheme. By auditing your energy use, you can find out where your business spends most on energy and how you can save money by implementing energy efficient policies, technologies and units.

During the first phase of ESOS the Carbon Trust (https://www.carbontrust.com/resources/guides/energy-efficiency/energy-savings-opportunity-scheme-esos/) provided support to help businesses with the scheme. From their energy saving opportunity assessments, they concluded that cost-effective measures could cut energy costs in buildings, transport fleets and industrial processes by about 20% on a typical spend of £1.8 million. The Carbon Trust calculated that this translates into average annual savings of £360,000, with far more being possible in certain industry sectors.

Does my business qualify?

According to Gov.uk (https://www.gov.uk/guidance/energy-savings-opportunity-scheme-esos), “ESOS applies to large UK undertakings and their corporate groups. It mainly affects businesses but can also apply to not-for-profit bodies and any other non public sector undertakings that are large enough to meet the qualification criteria.”

A large undertaking is defined as any UK company that either:
• employs 250 or more people, or
• has an annual turnover in excess of 50 million euro (£38,937,777), and an annual balance sheet total in excess of 43 million euro (£33,486,489)

A large undertaking is also an overseas company with a UK registered establishment that has 250 or more UK employees (paying income tax in the UK).

There are exceptions – if you qualify for ESOS and your organisation is fully covered by ISO 50001, you don’t need to carry out an ESOS assessment. You just need to notify the Environment Agency that you are compliant with ESOS.

What do I need to do for the assessment?

There are several steps to the assessment that are covered in more detail by the regulators and on gov.uk guidance (https://www.gov.uk/guidance/energy-savings-opportunity-scheme-esos#Compliance). In brief, you need to:
1. Calculate your total energy consumption
2. Identify your areas of significant energy consumption
3. Appoint a lead assessor, an employee or external contractor who is a member of an approved professional body register.
4. Submit your ESOS notification of compliance to the Environment Agency
5. Keep records, and there is no set format for this.

If you are looking at technology that that can provide energy efficiency savings, Critical Power can help. We ensure the products and solutions we supply are as energy efficient and environmentally sound as we can possibly make them. Replacing your UPS system will take advantage of new, more energy efficient power protection, energy management and cooling technologies. We also offer the option to Trade Up, where possible, meaning you can update your UPS system at a reduced cost and without creating the waste normally associated with rip-out-and-replace scenarios.

To find out more, contact us today

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