Energy Savings Opportunity Scheme

October 31, 2014

The Government has recently developed the Energy Savings Opportunity Scheme which requires compulsory energy audits in the UK for companies with more than 250 employees or a turn over of 50 million Euros. It has been estimated by the Carbon Trust that 7,300 enterprises in the UK will be affected by this new policy. This accounts for 35% of total UK energy consumption.

This policy has been developed in response to the European Union’s Energy Efficiency Directive (2012). The reduction in energy consumption resulting from the enforcement of ESOS will contribute to meeting the EU’s 20% energy reduction target by 2020.

Qualifying companies will be required to audit 90% of total energy usage during a one year period and identify energy efficiency opportunities. In order to comply with ESOS, companies must have produced their first environmental audit report and notify the Environment Agency by 5th December 2015. From there on, ESOS assessments must be carried out every four years. The average expected cost of a four-year cycle is £6,600. However, cost savings of around £35,400 could be realised from an initial audit. The penalty for non-compliant companies will range from £5,000-£50,000.

Find out more here