The majority of large organisations will be aware of the Energy Savings Opportunity Scheme (“ESOS”), the mechanism through which the UK has implemented the requirement to undertake energy audits every four years under the Energy Efficiency Directive (Directive 2012/27/EU). Most also will have carried out their energy audits in time for the notification deadline of 5th December 2019. Potentially there may be some organisations (for instance whose parent company is based overseas) who may be in doubt as to whether they fall under the remit of ESOS and the qualifying definition of “large undertaking”. For these entities we hope this is a useful reminded.
ESOS – an overview
ESOS is not sector specific. It captures large enterprises (non-SME) and requiring of them a programme of regular energy audits, at least one every four years, to assess the energy used by their buildings, industrial processes, and transport. There are different routes to compliance which are discussed in more detail in our previous Law Now.
Phase 2 ‘notification’ – what does it mean?
ESOS is UK wide and Environment Agency is the UK scheme administrator for it on behalf of all the UK regulators. In advance of the Phase 2 deadline, qualifying companies are required to notify the Environment Agency no later than 5th December 2019 in the following circumstances:
- where the company qualifies for ESOS and has carried out an ESOS-compliant energy audit;
- where the company qualified for ESOS during Phase 1 but no longer meets the criteria and therefore does not qualify for Phase 2; or
- where the company does not qualify for Phase 2 but has been contacted by the Environment Agency in the past.
This notification can only be submitted to the Environment Agency online. It must include details about the organisation and how it has complied with ESOS, or why it is not required to do so. The notification data will be published by the Environment Agency in accordance with its responsibilities under the ESOS Regulations 2014 (see link below) and government open data policies.