What is ESOS?

The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment and energy saving identification scheme for large undertakings (and their corporate groups).

The scheme applies throughout the UK.

Am I in scope of ESOS?
You are likely to be in scope of ESOS if, on the qualification date (31 December 2014 for the
first phase of ESOS), you are:
1. An undertaking which has 250 or more employees.
2. An undertaking which has fewer than 250 employees, but has an annual turnover exceeding €50m and a balance sheet exceeding €43m.
3. Part of a corporate group which includes an undertaking which meets criteria (1) or (2) above.
Organisations that are required to comply with the Public Contracts Regulations 2006 or the
Public Contracts Regulations (Scotland) 2012 are exempt from the scheme.
Full guidance on whether you are required to participate in ESOS can be found in Section 3.

What do I have to do to comply with ESOS?
A full overview of how the scheme operates is provided in Section 2.
In simple terms, an ESOS Assessment requires participants to do three things:
1. Measure your total energy consumption
You must measure your total energy consumption across your buildings, transport and industrial
2. Conduct energy audits to identify cost-effective energy efficiency recommendations.
You must ensure that at least 90% of your total energy consumption is subject to an ESOS compliant energy audit, a Display Energy Certificate, a Green Deal Assessment or a certified
ISO 50001 Energy Management System during each phase of the scheme.
For the first phase of the scheme, you can use any energy auditing activity dating back to December 2011 to support compliance (for example, the Carbon Trust Standard) provided that
it meets the minimum standards required of ESOS Energy Audits.
Unless your total energy consumption is covered by a certified ISO 50001 Energy Management System, you must ensure that your ESOS Assessment is conducted or reviewed by a qualified
Lead Assessor (the lead assessor may be an in-house expert or external consultant).

3. Report compliance to the Environment Agency (as the scheme administrator) By 5 December 2015, you must notify the Environment Agency (as the scheme administrator)
that you have complied with the scheme. Prior to notifying the Environment Agency, you must ensure that your ESOS Assessment has been reviewed by a Board-level Director and approved by a Lead Assessor. Participants are not required to implement energy efficiency recommendations identified by their
ESOS Assessments. However, they will only achieve the financial benefits that arise from avoiding energy waste if they do implement cost-effective recommendations identified.

What if I am an SME or public body?
Although SMEs or public sector bodies are not required to participate in ESOS, they could still
benefit from voluntarily meeting the ESOS requirements. ESOS provides a framework you may
wish to use to help you identify energy efficiency opportunities, e.g. you may wish to use using a
qualified ESOS Lead Assessor to undertake energy audits of your operations.