Energy Savings Opportunity Scheme CIBSE Leadership in Building Performance Conference, 28 Oct 2014 Philip Douglas, Head of Energy Efficiency & Community Energy Strategy team

“We estimate that through socially cost-effective investment in energy efficiency we could be saving 196TWh in 2020, equivalent to 22 power stations”

ESOS CRC EU ETS & CCAs Key business energy efficiency policies have different primary targets Covers all large and smaller non-SME enterprises Energy intensive industry – site based Less energy intensive commercial organisations (major energy users)

ESOS Consultation process Met with over 400 stakeholders From over 300 organisations Received 150 consultation responses Dec ‘13 - Key policy decisions made May ‘14 - Publish Govt Response & legislation Jun ‘14 - Legislation comes in to force Dec ‘14 – Scheme operational

“Cost-effective energy efficiency has the potential to deliver a triple win for businesses, the environment and the wider economy […] ESOS can support businesses in realising their energy efficiency potential” – CBI 5

Key messages from consultation Keep it simple, and understandable yet make it meaningful Respondents want the scheme to provide outputs that are relevant to each business Respondents want ESOS to add value and identify real measures that can be implemented Avoid duplication in existing regulation and requirements There a range of energy efficiency policies operating in the UK – ESOS needs to fit Take advantage of alternative routes to compliance – e.g. ISO50001 Minimise costs Allow discretion on the number of site visits required within audits Using internal team members for their knowledge and skills Only having lead auditor requiring accreditation under the scheme – but need for whole audit team to be of sufficient quality to ensure that output is meaningful 6

7 Am I part of a group undertaking? Do I employ 250 or more people? Is my turnover more than €50m Does the group undertaking include in the UK one or more ‘large enterprises’? Is my annual balance sheet more than €43m AND   I am a ‘large enterprise’ I am part of a large group enterprise  Organisations subject to the public contracts regulations 2006 are exempt from the scheme

Conducting an ESOS assessment 8 1. Measure energy use 3. Evaluate opportunities 4. Store data and notify scheme administrator 5. Implement savings, and further disclosure (e.g. in annual report) 2. Identify energy efficiency and energy management opportunities Mandatory Voluntary

Key requirements Audit 90% of energy activity (energy use or energy spend) Determine you are in on 31 December 2014 Use a ‘lead assessor’ to review assessment Get Director sign-off (2 Directors if in-house assessor used) Comply & Notify scheme administrator by 5 Dec 2015 (and every 4 years thereafter) Store records of assessment 9

Reporting and compliance Key disclosure questions 1.Does your organisation have a quantitative energy efficiency target and/or benchmarks? 2.Has the Board of Directors of your organisation discussed the results of your ESOS assessment? 3.Have you published any information relating to your ESOS audit report? (e.g. key findings, or key actions taken in light of the ESOS Assessment) 10

Use a qualified lead assessor 11 Professional body Lead Assessor Belongs to a… Which is approved by… Scheme administrator PAS51215 – sets standard of competence for lead assessors (professional bodies will ensure members meet this standard)

Any questions?