Energy Savings Opportunity Scheme

1. Energy Savings Opportunity Scheme Martin Adams, ESOS Team Leader September 2014

2. “Cost-effective energy efficiency has the potential to deliver a triple win – for business, the environment and the wider economy … ESOS can support businessin realising their energy efficiency potential” – CBI Energy Savings Opportunity Scheme

3. The basics • What is ESOS? • A mandatory energy audit scheme for the UK • Measure energy use • Identify opportunities • Notify scheme administrator (every four years) • Who must comply? • Large enterprises • Enterprise = business or non-profit orgundertaking an economic activity • Large = 250+ employees (or) €50m+ turnover and €43m+ balance sheet • Why ESOS? • EU Energy Efficiency Directive – obligation on all EU countries • Huge EE potential in the economy – 196TWh by 2020 in UK alone!!! Energy Savings Opportunity Scheme

4. Key messages from consultation • Keep it simple, and understandable yet make it meaningful • Straight-forward to comply • Broad regulations to accommodate diverse biz • Audits should identify real EE opps • Avoid duplication in existing regulation and requirements • Align with other EE policies • Incorporate other energy assessment schemes e.g. ISO50001 • Minimise costs • Flexibility on nr of site visits for audit • Allow use of in-house team for their knowledge and skills • Lead auditor certified + team members qualified = effective audits Energy Savings Opportunity Scheme

5. ESOS is estimated to have a £1.6bn net benefit to the UK. This will primarily be felt by business through lower bills Energy Savings Opportunity Scheme

6. Policy Overview

7. Who is in scope of ESOS?  Does the group undertaking include in the UK one or more ‘large enterprises’? I am part of a large group enterprise Am I part of a group undertaking?  Do I employ 250 or more people? I am a large enterprise Is my turnover more than €50m Organisations subject to the public contracts regulations 2006 are exempt from the scheme  I am a large enterprise AND Is my annual balance sheet more than €43m Energy Savings Opportunity Scheme

8. 5. Implement savings, and further disclosure (e.g. in annual report) • 2. Identify energy efficiency and energy management opportunities ESOS assessment Mandatory Voluntary Energy Savings Opportunity Scheme

9. Routes to compliance • ISO50001 • Display Energy Certificates • Previous audits to ESOS standards • And… • ESOS compliant energy audits (either conducted in-house or by external assessor) Energy Savings Opportunity Scheme

10. Key requirements • Audit 90% of energy activity (energy use or energy spend) • Determine you are in on 31 December 2014 • Use a ‘lead assessor’ to review assessment • Get Director sign-off • Comply & Notify scheme administrator by 5 Dec 2015(and every 4 years thereafter) • Store records of assessment Energy Savings Opportunity Scheme

11. Flexibility to comply • Comply via one-off, multiple, or rolling audits • Count historical energy assessment activity (up to four years before compliance date) • Discretion as to the number of site visits • Use 12-months data – but comply or explain principle • Groups • Highest UK-parent responsible but disaggregation allowed • Franchises: Can ‘opt in’ to group reporting Energy Savings Opportunity Scheme

12. Compatibility with existing schemes Data gathered and activity undertaken under existing schemes can be used to supportESOS compliance. Energy Savings Opportunity Scheme

13. Any questions? esos@environment-agency.gov.uk https://www.gov.uk/energy-savings-opportunity-scheme-esos