#137 Routes to ESOS Compliance – Energy Audits

Apr 19, 2023

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The Energy Savings Opportunity Scheme (ESOS) is a legal requirement for organisations of a certain size or value. The scheme is designed to make companies look at how they use energy with a view to improving performance. If your organisation qualifies for ESOS, you have until December 5th to comply or complete your phase 3 reporting.

Over the next few weeks, we will focus on how you can comply with ESOS, starting with Energy Audits. These audits are required by ESOS in order to understand where and how energy is used within the organisations premises and operations. Every audit will recommend cost-effective measures that will save the organisation energy and money, which is the ultimate intention of the legislation.

Join Mel this week as she explains what Energy Audits are, what data you need to report on and what final sign-off is required before a report is submitted.

You’ll learn

● Who needs to comply with ESOS?

● How can you comply with ESOS?

● What are Energy Audits?

● What data do you need to gather?

● Who needs to sign-off the ESOS report before submission?

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In this episode, we talk about:

[00:44] The deadline for Phase 3 ESOS reporting is the 5th December. Remember that ISO 50001 is considered a route to compliance if you don’t want to go ahead with conducting Energy Audits.

[01:32] What is ESOS? ESOS stands for the Energy Savings Opportunity Scheme. It was launched by the department of energy and climate change, Deck, back in July 2013. It was established to comply with Article 8 – an EU directive that was created in 2014. Despite Brexit, any qualifying businesses must still comply. ESOS in simple terms is an energy assessment that must be carried out by its definition of large enterprises.

[02:50] Who qualifies for ESOS? Large enterprises as defined by ESOS are businesses that have more than 250 employees and / or an annual turnover exceeding 50 million euro or a balance sheet exceeding 43 million euro. This only applies to the private sector – the public sector is exempt.

[03:33] When does ESOS reporting occur? Every 4 years – The first phase staring in 2014, Phase 2 was in 2019 and Phase 3 will have it’s deadline this year.

[04:08] Why is ESOS important? – No matter where you are in the world, energy reduction is crucial. Businesses should also be well aware of their own energy use and impact, not only to reduce but hopefully offset as part of ongoing sustainability efforts.

[04:35] It’s estimated that there will be a net benefit of £1.6 billion as a result of ESOS to the UK alone.

[04:55] What do you need to do to comply with ESOS? An ESOS assessment requires you to do 3 things:

· Measure your total energy consumption

· Conduct Energy Audits – to identify cost effective energy reduction recommendations

· To report compliance back to the Environment Agency (For the UK, other European countries will have their own authority)

[05:42] How can you comply with ESOS? – There are 2 routes to compliance:

· Conduct Energy / ESOS Audits

· Implement ISO 50001 - Companies certified to this standard are already complying with ESOS, as it goes above and beyond ESOS’s requirements.

[07:20] What’s involved in an ESOS Energy Audit? – You will be required to collect 12 months of energy data, provide cost effective energy reduction recommendations for the areas audited in scope, and findings need to be reviewed by an ESOS Lead Assessor.

[08:00] What do you need to consider when collecting data and looking at where reductions can be made? – Facilities – i.e. heating, lighting, ventilation ect. There are a number of energy efficiency initiatives to help reduce costs involved with elements of facility management. It can be something simple like replacing old boilers, using energy efficient Led lighting, reducing working hours in the office, reviewing time settings for lighting, ventilation and heating ect. Many businesses leave unnecessary functions / devices on overnight, start looking at how much energy you’re using and where and you’ll be able to identify where energy use and costs can be cut.

[10:20] Other things to consider are additional warehouses or transportation within your business i.e. fuel consumption, vehicle maintenance ect.

[10:53] To truly make a difference, you need to spread awareness within your business about any changes you’re making as a result of these energy audits. Including any reminders to them i.e. turning off lights when they leave a premises.

[11:05] What do you need to do to carry out an ESOS Energy Audit?:

· You need to plan the audit – including establishing the scope

· Conduct the audit

· Collect data for analysis and identify the opportunities for improvement

· Pull together all the documentation in an ESOS evidence pack which will be reviewed and signed off by top management and an ESOS Lead Assessor

· Finally, you can submit that evidence pack to the Environment Agency

If you need help with any of this – Blackmores can help 😉

[11:45] What are the different data sources you should look at? Meter reading records, delivery notes, automatic meter readings ect. We find that the financial team and facility managers are instrumental in gathering the necessary data. Don’t forget to gather any travel information from your drivers of vehicle fleet managers!

[12:31] Establishing the scope and documentation – You will need to set the scope and boundaries of the audit, document the methodology for your data collection and recommendations for improvement, document your data sources and identify any gaps.

[13:00] Final sign-off: Once everything has been documented in an evidence pack, you need to get this signed off by a director or member of top management and by an ESOS energy assessor. Once done, you can submit this to the Environment Agency

Tune in next week where we explore the ISO 50001 route to ESOS compliance.

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