Energy efficiency tests will be mandatory for UK businesses

Under the new Energy Savings Opportunity Scheme (ESOS) from December 31st 2014 all large business in the UK will be required to undertake a mandatory energy assessment to help drive the take-up of cost-effective energy efficiency measures by participants.

Companies who qualify for the scheme are those which has 250 employees or more, companies which have less than 250 but have an annual turnover of more than 50 million and a balance sheet of more than 43 million. This criteria also includes corporate groups.

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.

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.

For more information, please click here.