ENERGY MANAGEMENT > COMPLIANCE
Energy Compliance Services
The main compliance schemes that your business must be aware of are the Energy Savings Opportunity Scheme (ESOS) and Streamlined Energy Carbon Reporting (SERC).
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.
It is absolutely vital that should you qualify for the schemes that you have procedures in place for assessments.
Organisations that qualify 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.
You qualify for phase 3 of ESOS of as at the 31/12/2022 your business;
You must take part in ESOS if your undertaking is part of a corporate group which includes another UK undertaking or UK establishment which meets these criteria. Unless otherwise agreed the highest UK parent of the group will ensure that the whole group complies.
The below is not a complete list of your requirements but gives an outline of what is required.
For your assessment, you need to:
SECR is the replacement for the Carbon Reduction Commitment and requires organisations to report energy and carbon emissions in their annual report.
To qualify for this you must be considered a large company in which you must meet two of the following criteria;
Where a large company does not consumer more than 40,000 kWh of energy in a reporting period, they are considered a low energy user and so are exempt from reporting.
You must disclose your energy usage which consists of 3 parts;
Electric consumption
Gas combustion
Transport
You must also report green house gas emissions and emissions intensity ratio.
There are 3 emission scopes and each has a minimum you must report
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Frequently Asked Questions
The main schemes that effect businesses are energy saving opportunity scheme (ESOS) and streamlined energy carbon reporting (SECR).
ESOS is a mandatory energy assessment scheme for organisations in the UK that meet the qualification criteria, which aims to reduce businesses energy usage. The UK scheme administrator is the Environment Agency.
- Calculate your total energy consumption
- Identify your areas of significant energy consumption
- Appoint a lead assessor
- Notify the Environment Agency
- Keep records
Streamlined Energy Carbon Reporting was introduced in 2019 and replaces the Carbon Reduction Commitment. SECR requires eligible companies to report on their energy usage and the associated greenhouse gas emissions.
To qualify for this you must be considered a large company in which you must meet two of the following criteria:
- turnover (or gross income) of £36 million or more,
- balance sheet assets of £18 million or more,
- 250 employees or more.
You do not qualify if you use less than 40,000 kWh.
Reporting of: electric consumption, gas consumption, transport, green house gas emissions, emissions intensity ratio, methodology.
