Navigating ESOS: Understanding the Energy Savings Opportunity Scheme
Navigating ESOS: Understanding the Energy Savings Opportunity Scheme
The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy audit program for large organizations in the UK. It aims to identify areas of energy waste, encourage behavioral changes, and promote energy efficiency across various sectors. In this article, we will provide an overview of ESOS, its requirements, and its benefits for participants, as well as how Smartcool can help with its energy efficiency solutions.
ESOS Basics
ESOS requires qualifying organizations to assess their energy consumption across buildings, transport, and industrial operations. An auditor reviews the energy data and surveys the sites to identify areas of energy waste. Based on this information, the auditor will provide recommendations on how your organization can save energy. While ESOS is not a carbon tax, it does encourage organizations to adopt energy-saving measures.
Who is Affected by ESOS?
ESOS applies to "large UK undertakings" and their corporate groups, including businesses, not-for-profit bodies, and other non-public-sector organizations with at least 250 employees or an annual turnover of over £44 million and an annual balance sheet total of over £38 million. Public sector organizations are largely excluded from ESOS, while smaller undertakings may also qualify if they are part of a larger group containing a qualifying "large undertaking."
ESOS Compliance Deadlines and Regulations
Organizations must complete ESOS assessments every four years. The current cycle (Phase 3) has a notification deadline of December 5, 2023. ESOS is regulated by the Environment Agency in England, with equivalent agencies in Scotland, Northern Ireland, and Wales overseeing their respective regions.
Assessing Energy Consumption
ESOS requires the inclusion of 90% of an organization's total energy usage in the assessment. This includes energy consumption from transport where the participant has been directly supplied with the fuel. An ESOS assessment must be overseen by a Lead Assessor who is a member of an approved professional body register.
Recommendations and Penalties
ESOS recommendations are tailored to your organization, focusing on cost-effective and practical solutions such as insulation, building controls improvements, lighting upgrades, and submetering installation and monitoring. Failing to comply with ESOS can result in penalties, including fines and daily penalties for each separate breach of the regulations. Non-compliant organizations may also have their names and penalty details published on the Environment Agency website.
Implementing Energy-Saving Measures with Smartcool
While the implementation of energy-saving recommendations is not mandatory, doing so can help organizations recoup the cost of the audit and realize long-term energy savings. Smartcool can assist with energy efficiency measures like compressor optimization technology and wireless energy monitoring systems. HVAC systems account for a large percentage of a building's energy usage, and Smartcool's compressor optimization technology can reduce energy consumption by 20% or more. The wireless energy monitoring system is useful to assess your energy usage, benchmark environmental performance, and verify the savings your energy efficiency measures claim to make.
ESOS is an essential tool for large organizations to identify energy waste and improve their energy efficiency. By understanding the scheme's requirements and taking advantage of the recommendations provided, organizations can reduce their energy costs, contribute to a more sustainable future, and maintain compliance with ever-evolving regulations. To enhance your organization's energy efficiency and benefit from Smartcool's innovative solutions, get in touch with us today.