The first round of energy audits must be completed by

5th December 2015

Energy Savings Opportunity Scheme (ESOS) > News

Smarter Spending > www.expense-reduction.co.uk > News

How can we help?

We believe that you should aim to get the most out of complying with ESOS. We offer a range of services, all designed to ensure compliance whilst offering value. These include:

• Helping you determine the scope of your compliance and assisting with the data collection.

• Advising you on the most cost effective compliance route, such as integrating the data generated for other schemes (CRC, CCA, EU Emissions Trading Scheme, Carbon Trust Standard etc.), carrying out audits or implementing an environmental management system.

• Planning and delivering the energy audits.

• Providing a Lead Assessor to oversee and manage the ESOS assessment. ERA have a number of Lead Assessors who are qualified under ESOS approved registers.

What is ESOS?

Under Article 8 of the EU Energy Efficiency Directive, all non-SME companies are required to undertake an energy audit. In response to this, the UK Government has introduced the Energy Savings Opportunity Scheme (ESOS).

Organisations with 250 or more employees, or an annual turnover exceeding EUR 50 million, and an annual balance sheet total exceeding EUR 43 million, will need to undertake a 4-yearly cycle of energy audits. These may be standalone or part of a recognised environmental management system (e.g. ISO 50001).

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ESOS Deadline:5th December 2015

Smarter Spending > www.expense-reduction.co.uk > News

How much could the scheme cost?

Department of Energy and Climate Change (DECC) estimates that the average cost of complying with ESOS in the first audit cycle will be around £21,000 (for organisations without a recognised environmental management system already in place) and £13,000 for each subsequent cycle. Naturally, this will vary depending on the size of the organisation. ERA has seen the audit costs vary from £5,000 to £50,000.

It is clear that ESOS will require some investment. Adopting a compliance only approach to the scheme will cost your organisation money, but developing a strategic plan to get the most out of your participation will provide real value and could achieve significant savings.

Adopting ERA’s strategic approach to ESOS will help you gain real benefits from ESOS.

Optimising the outcome

Whilst you have to comply, ESOS is not only a compliance issue; it presents a real opportunity for organisations to make savings. We can help you:

• develop and implement a robust strategy that will ensure compliance.

• identify opportunities to save on energy bills.

• provide data to support a business case for investing in energy efficiency measures within your organisation.

We believe that the value is in the detail and comes from carefully considering and planning each step of your ESOS compliance. This ranges from selecting the right de minimis and determining the auditing approach, to planning audit outputs.

For a free consultation about ESOS please contact us:

www.expense-reduction.co.uk

Summary of information required

Generally the following activities will be required to produce the information for the ESOS submission:

• Agree audit methodology and timetable (ERA & Client).

• Premises details, including the number and address of sites, size, industry sector operating in, and headcount.

• Vehicle details including fleet size, fuel usage, types of vehicles etc.

• Breakdown of the company’s energy used by type in the building over a one year period that is within the 23 month period between 01/01/2014 and 05/12/15. The energy data (fuel types; Electricity, Gas, Petrol, Diesel etc) may be supplied directly by the utility supplier or through the landlord. The data may be the total proportioned area occupied by you for landlord services, plus separately metered electrical supplies to UPS/server room, meeting room and office areas. Ideally half hourly meter data for electricity supply should be provided.

• ERA Analysis of energy data to assess performance of systems to determine where further investigation should be directed and recommendations for improved operation made.

• ERA Energy survey of the occupied area of the building and also shared central plant to determine the potentially most cost effective energy saving measures.

• Calculation of energy saving potential and life time cost analysis of measure.

• Compiling the information and recommendations as an ‘evidence pack’ for ESOS for acceptance by the client.

• Signing off the ESOS submission with the client’s representative.

If not already provided as a part of a Utilities review, you should be able to supply the energy consumption information.

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Ensuring compliance whilst adding value