Energy Savings Opportunity Scheme - time is running out…

21 September 2015


With financial penalties of up to £90,000 for non-compliance - but also potentially huge savings to be made through the scheme - it's essential that qualifying companies are prepared for the Energy Savings Opportunity Scheme (ESOS).

What is it?

Announced last year, ESOS is a new regime requiring organisations to assess their energy usage (including an assessment of the property they occupy) every four years and identify ways in which energy can be saved.

If a "qualifying" organisation fails to comply by 5 December 2015, the Environment Agency (EA) has powers to impose financial penalties of up to £90,000.

In addition, the EA intends to 'name and shame' all organisations in breach of ESOS requirements.

Does my company qualify?

In brief, an organisation qualifies for ESOS if on 31 December 2014:

  1. it employed 250+ employees; and/or
  2. its turnover exceeded £38,937,777 AND its balance sheet exceeded £33,486,489; OR
  3. it is part of a group of undertakings and one of the undertakings satisfied 1 or 2.

We understand that of the estimated 10,000+ organisations that will be caught by this new regime, less than 100 have complied with the ESOS requirements so far.

What's in it for me?

While there is no formal requirement for an organisation to implement any of the energy saving measures identified within the assessment, the EA believes that the potential savings identified could be 13.5 times greater than the cost of the energy assessment carried out. So, compliance could save your company money.

Make sure that you are ESOS ready

If you think that your organisation qualifies for ESOS and you would like some advice on what needs to be done in order to ensure compliance, we will be happy to assist you.

And remember... ESOS is here to stay. There is a continuing obligation on organisations to reassess their ESOS liabilities every four years. Even if your organisation does not qualify this time around, it might do by 31 December 2018.


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