We Take The Stress Out Of Regulation Compliance
Energy Savings Opportunity Scheme (UK)
ESOS is a mandatory energy assessment scheme for organisations in the UK that meet the qualification criteria. The Environment Agency is the UK scheme administrator.
The UK regulators are:
Environment Agency for organisations whose registered office is in England
Natural Resources Wales for organisations whose registered office is in Wales
Northern Ireland Environment Agency for organisations whose registered office is in Northern Ireland
Scottish Environment Protection Agency for organisations whose registered office is in Scotland
Secretary of State for Business, Energy and Industrial Strategy for organisations whose activities consist wholly or mainly of offshore activities
Organisations that qualify for ESOS must carry out ESOS assessments every 4 years. These assessments are audits of the energy used by their buildings, industrial processes and transport to identify cost-effective energy saving measures.
Energy & Carbon Reporting
Legislation introduced 1st April 2019 businesses are required to comply for financial years starting on or after 1 April 2019 and therefore need to understand their requirements under SECR.
The introduction of SECR coincides with the end of the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme. The new regulations will require an estimated 11,900 companies incorporated in the UK to disclose their energy and carbon emissions - a far greater number than were required to act under the CRC.
SECR builds on – but does not replace – existing requirements that companies may face, such as mandatory greenhouse gas (GHG) reporting for quoted companies, the Energy Saving Opportunity Scheme (ESOS), Climate Change Agreements (CCA) Scheme, and the EU Emissions Trading Scheme (ETS).
SECR extends the reporting requirements for quoted companies and mandates new annual disclosures for large unquoted and limited liability partnerships (LLPs).
Introduced by Ofgem, DCP 161 came into force on 1st April 2018 to ensure that any half-hourly (HH) metered sites are billed fairly and correctly in respect of their Agreed Supply Capacity (ASC).
Each HH meter across the UK has an ASC, which is measured in kVA and forms part of the site’s Connection Agreement with the local distribution network (DNO)
The ASC is charged at a rate which has been agreed within the supply contract and is affected by both voltage level and area.
The penalty charge for exceeding your available capacity will increase on average, by an estimated 81%. This charge will vary significantly from region to region.
The 2050 Target
The Climate Change Act commits the UK government by law to reducing green house gas emissions by at least 80% of 1990 levels by 2050. This includes reducing emissions from the devolved administrations (Scotland, Wales and Northern Ireland), which currently account for about 20% of the UK's emissions.
Reducing your energy usage and increasing the on-site generation of energy lowers a business’s exposure to price hikes in a turbulent market.
Choosing to use energy from a low CO2 source – such as solar, wind, geothermal, landfill gas or Combined Heat and Power – doesn’t itself grant exemption from the Climate Change Levy (this was removed in August 2015 by the Government), as the costs to do so go down, it’s even more important for businesses to consider options such as on-site generation in order to lower the demand they place on the grid.