The Energy Savings Opportunity Scheme (ESOS) (Amendment) Regulations 2023
Overview
The Energy Savings Opportunity Scheme (ESOS) has long been a cornerstone in the UK’s commitment to energy efficiency among large organisations. With the recent enactment of the Energy Savings Opportunity Scheme (Amendment) Regulations 2023, businesses face new requirements and considerations in their pursuit of sustainable energy practices. This blog delves into the key aspects of these amendments, providing businesses with a comprehensive guide to navigate the evolving landscape of ESOS compliance.
ESOS, established in 2014, mandates energy assessments for large UK organisations, promoting energy efficiency and driving meaningful reductions in energy consumption. The 2023 amendments aim to refine and enhance the existing framework, encouraging a more standardised approach to reporting and publication of energy-related information.
The amended regulations introduce several key requirements that businesses falling under the purview of ESOS must now adhere to:
- Compliance Date Update: The compliance date for the period beginning on December 6, 2019, is extended to June 5, 2024, for specific purposes.
- Publication Requirements: Scheme administrators are now mandated to publish additional types of information held on the Notification System, enhancing transparency.
- Lead Assessor Appointment: Organisations consuming less than 40,000 kWh annually are exempt from appointing a lead assessor.
- Total Energy Consumption Calculation: All participants must calculate total energy consumption, emphasising a comprehensive approach to energy assessment.
- Areas of Significant Energy Consumption: The definition is refined to cover not less than 95% of the undertaking’s total energy consumption, providing a more accurate representation.
- Conversion to kWh Units: Under certain circumstances, total energy consumption or significant energy consumption must be converted into kWh units, streamlining measurement and reporting.
- Identification of Energy Consumption Proportions: Responsible undertakings must identify the proportion of energy consumption related to various organisational purposes, including transport, industrial processes, and buildings.
- Energy Intensity Ratios: Organisations are required to calculate energy intensity ratios for applicable organisational purposes, promoting targeted energy efficiency measures.
- Extended Requirements for Energy Audit: Site visit and record-keeping requirements are specified, and organisations are encouraged to conduct further analysis when identifying energy-saving opportunities.
- ESOS Report Production: A comprehensive ESOS report, detailing the energy audit, is now a requirement for responsible undertakings.
- Estimation of Energy Savings: New regulations mandate responsible undertakings to estimate energy savings made since the preceding compliance date, emphasising the impact of implemented measures.
- Information Sharing: Responsible undertakings are now required to share relevant information with group undertakings, fostering collaboration within corporate structures.
- Extended Information Requirements: The information required in the evidence pack is expanded, ensuring a more comprehensive overview, and, in specific circumstances, the holding period is extended.
- Notification of Compliance: Responsible undertakings must include an extended set of categories in their notification of compliance, contributing to a more detailed and transparent reporting process.
- ESOS Action Plan and Progress Update: New requirements (Part 6A) mandate participants to produce an ESOS action plan and progress update. These requirements also apply to those relying on alternative compliance routes.
The Energy Savings Opportunity Scheme (Amendment) Regulations 2023 came into force on the 29th of November 2023 and apply to the United Kingdom.
Do the Energy Savings Opportunity Scheme (Amendment) Regulations 2023 affect my business?
The amendments bring about significant impacts on businesses subject to ESOS:
- Enhanced Reporting Standards: The refined reporting requirements elevate the standards for transparency and disclosure, pushing businesses to provide a more detailed account of their energy consumption and efficiency measures.
- Targeted Energy Efficiency Measures: With the identification of energy consumption proportions and energy intensity ratios, organisations are prompted to adopt targeted measures for specific organisational purposes, maximising the impact of energy-saving initiatives.
- Collaborative Information Sharing: The requirement for information sharing with group undertakings encourages collaboration and shared responsibility within corporate structures.
- Extended Compliance Period: The extension of the compliance date provides businesses with additional time to align their practices with the new requirements, reducing immediate implementation pressure.
- Streamlined Measurement and Conversion: The introduction of kWh units and the refinement of significant energy consumption measurement contribute to a more streamlined and standardised approach to energy reporting.
While the requirements may pose initial challenges, they present a valuable opportunity for businesses to reassess and enhance their energy practices, contributing to a more sustainable and resilient future. As organisations embark on this journey, understanding the nuances of the amended regulations and embracing a proactive approach will be key to successful compliance and lasting positive impact.
Do I need the Energy Savings Opportunity Scheme (Amendment) Regulations 2023 in my ISO Compliance Register?
You will need the Energy Savings Opportunity Scheme (Amendment) Regulations 2023 in your ISO Compliance Register if you are subject to ESOS. The ESOS amendments primarily impact large organisations and their corporate groups in the UK. Businesses falling under the following categories are likely to be affected:
- High Energy Consumers: Organisations with significant energy consumption levels, exceeding the prescribed threshold, are directly affected.
- Corporate Groups: Large corporate groups with multiple entities are impacted, necessitating collaboration and standardised reporting within the group structure.
- Diverse Sectors: Businesses across various sectors, including manufacturing, transportation, and industrial processes, are affected due to the refined requirements related to organisational purposes.
Legislation related to the Energy Savings Opportunity Scheme (Amendment) Regulations 2023
Legislation related to the Energy Savings Opportunity Scheme (Amendment) Regulations 2023 include:
- The Energy Savings Opportunity Scheme Regulations (ESOS) 2014
- Energy Act 2011
- Energy Act 2023
- The Energy Information Regulations 2011
More information
Visit the Energy Savings Opportunity Scheme (Amendment) Regulations 2023 article on the legislation.gov.uk website.
Create an account in the ISO Compliance Register App and add this article (which are updated by the Energy Savings Opportunity Scheme (Amendment) Regulations 2023) to your Register.
