Introduction to ESOS
The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment and
energy saving identification scheme for large undertakings (and their corporate groups). The scheme applies throughout the UK.
ESOS is being established by the Department of Energy and Climate Change (DECC) in
response to the requirement for all Member States of the European Union to implement Article 8 of the Energy Efficiency Directive (‘the Directive’).2
In simple terms, an ESOS Assessment requires participants to do three things:
1. Measure your total energy consumption
2. Conduct energy audits to identify cost-effective energy efficiency recommendations
3. Report compliance to the Environment Agency (as the scheme administrator)
The scheme is estimated to lead to £1.6bn net benefits to the UK, with the majority of these
being directly felt by businesses as a result of energy savings.3
ESOS Energy Audits have the potential to increase your businesses profitability and
competitiveness by identifying cost-effective savings which, if implemented, will improve energy efficiency. ESOS Energy Audits must be carried out or reviewed by a suitably qualified assessor; this will help give you assurance that savings identified are real and achievable. If you have already conducted energy audits, for instance as part an existing scheme, you may be able to use them to contribute to your ESOS compliance.
Implementing energy efficiency measures identified through audits can reduce energy costs, but can also have wider benefits – such as reducing other costs (e.g. from waste disposal and maintenance), and increasing employee engagement, comfort and satisfaction in the workplace.
Finally, saving energy is good for the UK as a whole – increasing energy security and helping ensure we all play our part in tackling climate change.
Directive 2012/27/EU of The European Parliament and of The Council of 25 October 2012 on energy efficiency,
amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC.
Figure calculated on basis of NPV (2015-2030). Full detailed can be found in the final stage ESOS Impact
Assessment, published here: https://www.gov.uk/government/consultations/energy-savings-opportunity-scheme