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Our Energy Savings Opportunity Scheme (ESOS) Service

In today’s world, where energy efficiency is not just a goal but a necessity, organisations are looking for ways to not only comply with regulations but also to lead in sustainability. At TEST Consulting, we specialise in guiding businesses through the complexities of the Energy Savings Opportunity Scheme (ESOS), ensuring they not only meet legal requirements but also seize opportunities for energy conservation and operational improvement.

Energy Audits

Energy Audits

Unlock hidden savings with our comprehensive energy audits. By identifying and analysing your major energy uses, we not only ensure compliance with ESOS but also reveal significant opportunities for cost and energy reductions.

Reporting & Compliance

Reporting & Compliance

Our expertly crafted reports translate complex energy data into clear, actionable insights. We guide you through the compliance process with ease, offering peace of mind and a path to not just meet, but exceed ESOS requirements.

Future-Proofing Your Business

Future-Proofing

Stay ahead of evolving regulations with our forward-looking strategies. We prepare your business for future ESOS phases, integrating net-zero ambitions and ensuring you’re not just compliant today but also competitive tomorrow.

Continuous Improvement & Strategic Support

Strategic Support

Beyond initial compliance, we offer ongoing support to implement energy-saving measures, set realistic targets, and achieve substantial efficiency gains. We are positioning your business as a sustainability leader.

What is ESOS

The Energy Savings Opportunity Scheme (ESOS) in the UK is a mandatory energy assessment scheme for organisations in the UK that meet certain criteria. It’s part of the UK’s response to the EU Energy Efficiency Directive and aims to encourage energy efficiency improvements. Under ESOS, large organizations must carry out energy assessments every four years, covering their buildings, industrial processes, and transport activities to identify cost-effective energy-saving measures. Here are the Key Phases of ESOS:

PHASE 1
(2015-2019)

Introduction and Implementation

ESOS was introduced, requiring large enterprises (organizations with at least 250 employees or annual revenues over €50 million and an annual balance sheet over €43 million) to conduct comprehensive energy audits. These audits included analyses of energy consumption and efficiency opportunities.

Introduction and Implementation

Many organisations for the first time systematically identified significant energy savings opportunities across their operations.

PHASE 2
(2019-2023)

Refinement and Compliance

Building on lessons learned from Phase 1, Phase 2 aimed to increase the quality of audits and the implementation rate of recommended energy-saving measures.

Key Changes

There was a stronger emphasis on the quality of audits, with the Environment Agency (the scheme’s regulator) issuing more detailed guidance on compliance. Enforcement activity increased to ensure higher compliance rates.

Outcome

Increased awareness and implementation of energy efficiency measures, although challenges remained in ensuring all qualifying organizations complied fully.

Phase 3
Changes

Standardised Reporting Template

The introduction of a standardised template for ESOS reports aims to streamline compliance information reporting. It will encompass vital data such as corporate group structure and audit details, facilitating easier review and enforcement.

Reduction of the De Minimis Exemption

Reducing the de minimis exemption from 10% to 5% pushes organisations to broaden their energy audits and identify additional avenues for energy savings, enhancing the scheme’s coverage and the quality of reported data.

Energy Intensity Metric

The requirement to include an energy intensity metric in reports (kWh/m2 for buildings, kWh/unit for industry, kWh/miles for transport) aligns ESOS more closely with the SECR scheme, enabling a unified approach.

Anticipated
Phase 4
Changes

Net Zero Assessments

A significant introduction in Phase 4 will be net zero assessments, identifying the steps necessary for organisations to align with future net zero commitments. This includes evaluating potential business risks associated with transitioning to net zero and suggesting emission reduction trajectories that do not compromise future net zero pathways. A new net zero audit PAS standard, currently in development, will support this requirement.

Alignment with SECR Criteria

Adjusting the ESOS eligibility criteria to match those of SECR (250+ employees, £18 million+ balance sheet, or £36 million+ turnover) simplifies compliance requirements and broadens the scope of businesses contributing to energy efficiency and carbon reduction efforts.

Mandatory Action on Recommendations

A pivotal shift in Phase 4 will be the requirement for organisations to act on audit recommendations. If targets are not met, participants must provide explanations, ensuring a move from identification to implementation of energy-saving opportunities.

Auditing Standards Requirement

ESOS reports will be required to adhere to recognised auditing standards such as ISO 50002 or EN 16247, ensuring the quality and reliability of energy audits.

Phasing Out DECs and GDAs

The removal of Display Energy Certificates (DECs) and Green Deal Assessments (GDAs) as compliance routes refines the focus of ESOS towards more rigorous and standardised energy efficiency evaluations.

These phased changes underscore the UK government’s commitment to enhancing the operational efficiency, accountability, and impact of ESOS. By fostering a more stringent, targeted approach to energy efficiency, these modifications are set to play a crucial role in the UK’s transition towards a sustainable, net zero future.

Benefits of ESOS

  • Cost Reduction and Efficiency Gains

    COST REDUCTION AND EFFICIENCY GAINS

    ESOS identifies areas where energy usage can be optimised, leading to significant cost savings. By implementing recommended energy-saving measures, clients can achieve a substantial reduction in their energy bills and improve overall operational efficiency.

  • Strategic Energy Management

    STRATEGIC ENERGY MANAGEMENT

    ESOS provides a strategic framework for managing your energy consumption more effectively. It helps in setting actionable energy-saving targets and developing a clear roadmap for continuous improvement in energy efficiency.

  • Compliance and Competitive Advantage

    COMPLIANCE AND COMPETITIVE ADVANTAGE

    Achieving ESOS compliance not only ensures that your business meets legal requirements but also positions you as a leader in sustainability. This enhances your reputation with stakeholders, including investors, customers, and employees, providing a competitive edge in the market.

  • Future-Proofing Your Business

    FUTURE-PROOFING YOUR BUSINESS

    Participation in ESOS prepares businesses for future regulatory changes and energy price fluctuations. It aligns your energy strategy with broader environmental goals, such as the UK’s net-zero targets, ensuring long-term sustainability and resilience.

Empowering Compliance, Driving Sustainability

At TEST Consulting, we specialize in guiding organizations through ESOS compliance, ensuring legal requirements are met while driving sustainability. Our services unlock savings, elevate efficiency, and future-proof businesses, positioning them as leaders in energy management and environmental responsibility.

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