Complying with the Energy Savings Opportunity Scheme (ESOS)

1 Complying with the Energy Savings Opportunity Scheme Guidance Published: 7/02/2018. About this guidance This guidance is published by the Environment Agency as the UK Scheme administrator for the Energy Savings Opportunity Scheme , on behalf of all the UK regulators which are: Environment Agency for organisations whose registered office is in England. Natural Resources Wales for organisations whose registered office is in Wales. Northern Ireland Environment Agency for organisations whose registered office is in Northern Ireland. Scottish Environment Protection Agency for organisations whose registered office is in Scotland.

2 Secretary of State for Business, Energy and Industrial Strategy for organisations whose activities consist wholly or mainly of offshore activities. The Environment Agency, as Scheme administrator is responsible for guidance, communications, helpdesk and collection of notifications of compliance throughout the UK. The regulators are individually responsible for checking compliance and enforcement activities in relation to qualifying participants. Useful contact information is provided in Appendix C. Reference: LIT 10094 Version: 6 Page 1 of 105.

3 Version control Version 1 2015-02-16. Initial publication by the Environment Agency. Uses some text from Department of Energy and Climate Change's (DECC) guidance document. Guide to ESOS, Version , September 2014. and supersedes the DECC guidance. Version 2 2015-05-19. P7 Section - Footnote added and small text amendment in last paragraph to clarify qualification requirements in relation to employees covered for UK and non-UK. undertakings. P23 Section - Sentence added on UK supplies only. P24 First sentence on page added regarding UK supplies only.

4 P30 Section , P31 Section , P32 Section , P36 Section and P41 Section amended to clarify the requirement for lead assessors to review compliance. Paragraphs added to Sections , and to clarify Energy covered by ISO 50001/DEC/GDA is deemed fully compliant. Table A1 - Figures for electricity and gas corrected and the associated conversion factor. Version 3 2015-07-14. Section amendment to clarify that student loans used for tuition fees are private finance. Section amendment to reference 2015 Public Contracts Regulations rather than 2006.

5 Updates to sections , and 6 to explain that organisations with zero Energy supply will not need a lead assessor in order to be able to submit a notification of compliance. Updated notification questions (Appendix B) include additional questions to determine if an organisation has no Energy supply, and reordering of other questions to take account of this. Hyperlink to UKAS accredited ISO 50001 certification bodies and IAF members in section and Version 4 2015-10-08. Inclusion of enforcement position and link to the Environment Agency's Enforcement and Sanctions Guidance in Section Inclusion of references to this position in sections and Annex B - Clarification in Q18 of the notification that the number entered should only include 'active' entities.

6 Clarification of Q25 and additional answer added to reflect enforcement position. Version 5 2016-03-22. Amendment to Q26 answer one to reflect the wording on the notification portal. Section additional wording on Higher Education Institutions. Reference: LIT 10094 Version: 6 Page 2 of 105. Section amendment to include additional information about the Public Contracts Regulations 2015 and Public Contracts (Scotland) Regulations 2015 for second and subsequent compliance periods. Section additional wording relating to investment companies Version 6 2019-02-08.

7 Updates, clarifications and amendments throughout the document related to Phase 2. Reference: LIT 10094 Version: 6 Page 3 of 105. Contents Complying with the Energy Savings Opportunity Scheme .. 1. Stages required for completion of ESOS .. 5. 1. ESOS and who does it apply to? .. 5. 2. 26. 3. Carrying out an ESOS assessment .. 27. 4. Identifying areas of significant Energy consumption .. 36. 5. Considering available routes to compliance .. 37. 6. Appointing a lead assessor .. 43. 7. Director Sign off .. 47. 8. Notifying compliance .. 47.

8 9. Compliance, enforcement and appeals .. 50. Appendix A: Advice for Complying with the Energy Saving Opportunity Scheme (ESOS).. 53. Appendix B: How to fill in the notification form .. 90. Appendix C: Useful contacts .. 104. Reference: LIT 10094 Version: 6 Page 4 of 105. Stages required for completion of ESOS. The flow chart below highlights the key steps in ESOS and the relevant section in the guidance. Does your organisation Qualify for ESOS. Section 1. No Yes Identify all parts of your Organisations No further action Section 1 required Identify your total Energy consumption (TEC).

9 Section 3. Identify your significant Energy consumption. At least 90% of your TEC. Section 4. Carry out audit on all your SEC and identify Energy Savings opportunities Section 5. Get report reviewed by Lead Assessor and signed off by director(s). Sections 6 & 7. Notify the Environment Agency you have completed your ESOS requirements at Section 8. Reference: LIT 10094 Version: 6 Page 5 of 105. 1. ESOS and who does it apply to? The Energy Savings Opportunity Scheme (ESOS) is an Energy assessment and Energy saving Scheme and is established by the Energy Savings Opportunity Scheme Regulations 2014.

10 (ESOS Regulations). The Scheme applies to large undertakings and groups containing large undertakings in the UK. An undertaking, as defined in the Companies Act 2006, is: a corporate body or partnership an unincorporated association carrying on a trade or business, with or without a view to profit. Please note that the definition of an undertaking includes partnerships, LLPs joint ventures and in many cases charities The Scheme is estimated to lead to net (ESOS Impact Assessment DECC0142 24. November 2014) benefits to the UK, with the majority of these being directly felt by businesses as a result of Energy Savings .