ESOS – Energy Savings Opportunity Scheme

What is 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 to the offshore oil and gas industry operating on the United Kingdom Continental Shelf UKCS.

Am I in scope of ESOS?

You are likely to be in scope of ESOS if, on the qualification date (31 December 2014 for the first phase of ESOS), you are:

  • An undertaking which has 250 or more employees.
  • An undertaking which has fewer than 250 employees, but has:
  • an annual turnover exceeding €50m and a balance sheet exceeding €43m.
  • Part of a corporate group which includes an undertaking which meets criteria (1) or (2) above.
  • What do I have to do to comply with ESOS?

In simple terms, an ESOS Assessment for the offshore industry requires participants to do three things:

1. Measure your total energy consumption

Operators must measure the total energy consumption across offshore assets.

2. Conduct energy audits to identify cost-effective energy efficiency recommendations.

You must ensure that at least 90% of your total energy consumption is subject to an ESOS compliant energy audit, or a certified ISO 50001 Energy Management System during each phase of the scheme. For the first phase of the scheme, operators can use energy auditing activity dating back to December 2011 (e.g. verified EU-ETS data) to support compliance, provided that it meets the minimum standards required of ESOS Energy Audits.

Unless your total energy consumption is covered by a certified ISO 50001 Energy Management System, you must ensure that your ESOS Assessment is conducted or reviewed by a qualified Lead Assessor (the lead assessor may be an in-house expert or an external consultant).

3. Notify compliance to the Environment Agency (as the Scheme administrator)

By 5 December 2015, each operator must notify the Environment Agency that you have complied with the scheme. Prior to submission, the Assessment is required to be reviewed by a Board-level Director or, where organisations do not have directors, a senior manager of equivalent standing, and approved by a Lead Assessor.

If you need any help or advice on this subject, please give QMI-Scotland a call or contact us here.