The Logistics Business and ESOS

Beating Climate Change, Growing Business

ESOS is the Energy Savings Opportunity Savings Scheme Regulations 2014, which came into force on 17th July 2014. The aim of the regulations is to increase energy efficiency to support businesses not only increase profits and competiveness, but also to help mitigate against climate change.

The scheme requires all applicable companies to undergo a mandatory assessment of energy use and identify energy efficiency opportunities accounting for at least 90% of the total energy consumption.

Savings for businesses

The government estimates that the net benefit of the policy to the UK will be around £1.9 billion between 2015 and 2030. This is based on a conservative prediction that only 6 per cent by value of potential energy saving opportunities identified will be implemented.

But the actual benefits for business, based on analysis by the  independent Carbon Trust  are likely to be far greater than estimates suggest, with the actual  savings on energy bills  being some two or three times higher.

 Who is affected?

 The regulations apply to all ‘large undertakings’ that carry out a trade or business:

  • Employs 250 or more people; or
  • Employs fewer than 250 people, but has an annual turnover in excess of €50 million and an annual balance sheet in excess of €48 million; or
  • Is part of a group that includes at least one entity that meets either of the above.

Bodies that are subject to Public Contracting Regulations 2006 are outside the scope of ESOS.

What do you need to do?

  •  If you have an Energy Management System (ISO 50001) in place that covers all your organisation’s energy use and it has external certification valid on the date of compliance (5/12/15), then an assessment by a lead ESOS assessor is not required. You can just register compliance direct with the Environment Agency by 5th December 2015, once you have got a Board level Director to review and sign it off.

If your ISO50001 certification only covers part of your organisation’s energy use or you have no certification, you need to:

  •  Measure the total energy consumption for buildings, industrial processes and transport (the FTA’s Logistics Carbon Reduction Scheme has been identified as a means to help freight operators compile data and identify reduction opportunities).
  • Identify areas of significant energy consumption – those accounting for at least 90% of total energy consumption. Data needs to cover a 12-month period and has to include the 31st December 2014 and end before 5th December 2015.
  • Identify practical energy efficiency opportunities for the areas of significant energy consumption – these don’t have to cover the same data period and you can use existing energy saving opportunities identified anytime back to 6th December 2011 and up to the 5th December 2015. Data from other assessments such as the Carbon Trust Standard, Transport Energy Audit Service by the Energy Savings Trust, Display Energy Certificates and Green Deal Assessments can be used to support the process, providing it was issued after 6/12/11 and is still valid on the 5/12/15.
  • Before 5th December 2015 – appoint a lead ESOS Assessor to conduct an assessment – this must also be reviewed and signed off by a Board-level Director.
  • By 5th December 2015 – report compliance to the Environment Agency.

 How we can help

The Logistics Business can provide a range of support from getting your energy data in order and identifying energy efficiency opportunities to providing a Lead ESOS Assessor to conduct your assessment if your data collection and energy efficiency opportunities are already in place. If you would like to know more about how we can help please call:  01527 889060 or email info@logistics.co.uk.

20th April 2015