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

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

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 org undertaking 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!!! 3Energy Savings Opportunity Scheme

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 4Energy 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

Policy Overview

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

ESOS assessment 8Energy Savings Opportunity Scheme 1. Measure energy use 3. Evaluate opportunities 4. Store data and notify scheme administrator 5. Implement savings, and further disclosure (e.g. in annual report) 2. Identify energy efficiency and energy management opportunities Mandatory Voluntary

Routes to compliance 9Energy Savings Opportunity Scheme ESOS compliant organisation Previous activity that meets ESOS standards DECs / Green Deal Assessments ISO Display Energy Certificates Previous audits to ESOS standards And… ESOS compliant energy audits (either conducted in- house or by external assessor)

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 10Energy Savings Opportunity Scheme

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 11Energy Savings Opportunity Scheme

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

Any questions?