Understanding ESOS, and the route to compliance with Oakdene Hollins and Swan Energy
Oakdene Hollins are partnering with Swan Energy to assist our existing and future clients in their transition to Net-Zero. In addition to our long-standing expertise in the field of sustainability, this collaboration allows us to offer energy auditing and ESOS compliance.
What is ESOS?
The Energy Saving Opportunity Scheme (ESOS) is a mandatory government scheme that requires businesses, specifically ‘large UK undertakings’, to identify energy-saving opportunities. Businesses in scope of ESOS have to carry out audits of their energy use every four years in order to identify potential energy-saving measures.
The current deadline for the qualification phase is the 31st December 2022, with the compliance phase deadline being 5th December 2023. By this date, companies must ensure they have notified the Environment Agency that they have complied with ESOS regulations.
Your business is liable under ESOS if you:
· Have 250 employees or more
· Have an annual turnover in excess of £44 million (with an annual balance sheet total in excess of £38 million)
Any businesses that meet these criteria before the end of the month will need to ensure they comply with ESOS within the following year. In 2019, over 1,500 companies including eBay and Gumtree, failed to meet the first deadline - and failure to meet the second deadline can lead to penalties up to £50,000. Therefore, we recommend that businesses act quickly.
What does my company need to do?
To meet the ESOS requirements, a company will have to achieve the following steps:
1) Calculate total energy consumption – Energy is defined by ESOS as combustible fuels, heat, renewable energy, electricity, and transport fuel. Results will be presented in a common unit such as kilowatt-hours.
2) Identify and audit areas of significant energy consumption – Pinpoint which assets and activities account for at least 95% of your overall energy usage. Once identified, you will audit them against minimum government requirements.
3) Create an ESOS compliance plan – The audits results found will then be used to map out energy saving opportunities. You can use this to create an overall plan to minimise waste and improve energy efficiency as well as identifying innovative and achievable solutions to help you accomplish these aims.
4) Appoint a lead assessor to review the report – This can be done by either appointing a professionally registered employee or an external specialist to oversee your energy audits and signing off your final ESOS assessment.
5) Notify the Environment Agency (EA) – Upon completion of your ESOS assessment, the EA must be notified.
6) Keep accurate compliance records – Moving towards the future, you will be expected to maintain records of how you have complied with ESOS in an evidence pack.
What can Oakdene Hollins and Swan Energy offer my business?
Oakdene Hollins and Swan Energy can assist you in your transition to Net-Zero.
Swan Energy helps companies become ESOS compliant through guidance regarding:
· Data collection, validation and analysis
· Identifying cost-effective and practical energy saving opportunities
· Evidence gathering to demonstrate compliance and liaising with the EA.
Their expertise has been commended by clients such as Manchester Airport, Sheffield Teaching Hospitals NHS Trust, and UK Power Reserve.
Oakdene Hollins specialise in designing bespoke sustainability strategies for clients in various industries. As a part of a business’s sustainability strategy, the ESOS or another energy audit to ensure compliance is beneficial, and the latter can be also be offered through Oakdene Hollins’ services.
If you’d like to find out more, please get in touch with Robert.Knowles@oakdenehollins.com