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Energy Audits for 'Large Enterprises'?

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    Implementation of the Energy Efficiency Directive 2012 (EED) is currently being considered by the UK Government.  The EED requires all Member States to introduce a regime of regular Energy Audits for 'Large Enterprises' and promote the uptake for cost-effective energy efficiency measures. 

    EED requires the UK to introduce a programme of regular Energy Audits for ‘Large Enterprises’.  The first round of Energy Audits must be undertaken by 5 December 2015 and repeated every 4 years.

    For Large Enterprises Energy Audits could prove to be burdensome and expensive.  It is important therefore that enterprises which will be caught by EED respond to this consultation paper.

    The definition of ‘Large Enterprises’ includes all UK organisations outside the public sector if, as a group company it: 

    • employs 250 persons or more
    • annual turnover is greater than EUR 50m and/or
    • annual balance sheet total exceeds EUR 43m. 

    The Energy Savings Opportunity Scheme (ESOS) is the Government’s proposed approach to implementing EED.  A consultation paper published on 10th July 2013 seeks views on the operation of ESOS.

    Why should you respond to the consultation paper?

    Energy Audits will need to be carried out by Large Enterprises every 4 years.  In order to reduce this administrative burden the consultation paper seeks views on how to produce proportionate yet effective ESOS assessments.

    Government proposals suggest alternative routes to compliance including the use of Green Deal Assessments completed within the previous four years; using data already collected by a Climate Change Agreement and where appropriate using information from the ‘Green Fleet Review’ for the previous four years. 

    Other existing compliance regimes may also be considered (e.g ISO 50001). It is only by responding at this early stage of the process that Large Enterprises can limit or possibly eliminate their obligation to prepare separate ESOS audits by suggesting alternative routes to compliance.

    The consultation paper also seeks views on aligning the definition of group undertakings with that set out in the Companies Act 2006. This would be helpful where group companies consider a disaggregated approach would better align their energy management arrangements.

    What do you need to do?

    Consultation regarding ESOS will end on 3rd October 2013.  Responses to the Consultation will be used to develop secondary legislation setting out the legal framework for the operation of ESOS.  Secondary legislation must be implemented by 5th June 2014. 

    If you require assistance in responding to the consultation paper please contact Jane Southworth. 

    For more information contact

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