This presentation was delivered as a live countdown webinar on 5 December 2014, exactly one year from the compliance deadline. The Energy Savings Opportunity Scheme is the mandatory energy assessment scheme for large enterprises. The deadline of compliance is 5 December 2015. For further information on ESOS Compliance visit our website www.nqa.com/esos

1. THE NQA
ESOS COUNTDOWN
WEBINAR
5 DEC 2014 – 1 YEAR TO COMPLIANCE

2. Agenda
ESOS Qualifying Criteria, Compliance
Requirements and Timelines - Jo Scully, ESOS Project
Manager at Environment Agency
Compliance through ISO 50001: Northern Rail
Case Study - Richard Walsh, ISO 50001 Assessor, NQA
Can ISO 50001 be achieved within a year? - Kit Oung,
Board Member of Energy Managers Association
Q&A

3. Jo Scully, ESOS Project Manager, EA
Jo will provide a summary of the ESOS scheme
and go into further detail on elements of the
qualification criteria and compliance requirements
that the Environment Agency have had queries
about via the ESOS helpdesk.

4. Energy Savings
Opportunity Scheme
Jo Scully – Environment Agency ESOS Project Manager

5. 5
What is ESOS?
Energy Savings Opportunity Scheme (ESOS)
New UK regulation to comply with Article 8 (4) of the
European Energy Efficiency Directive.
Requires all large undertakings in the UK to do energy
efficiency audits by 5 December 2015 and thereafter at
least once every four years.
It is likely to cover over ~10,000 UK
organisations

6. Key Dates
Qualification Date 31/12/14
Don’t need to register or tell us you qualify
Compliance Date 05/12/2015
Tell us you have complied online via webpage
And every 4 years thereafter
6

7. 7
What are ‘large undertakings’?
Large undertaking is UK organisation that
has:
 at least 250 employees; or
 an annual turnover in excess of €50 million
(~£39.2 million) and an annual balance sheet
total €43m (~£33.7 million)
 Is part of a corporate group which includes a
UK undertaking which meets the above criteria
Phase 1: Based on status on 31 Dec’ 2014

8. 8
Requirements
1. Conduct ESOS assessment
 Where not fully covered by ISO50001 certification
2. Conduct energy audits
 Where not covered by ISO50001 certification, Green Deal
coverage or Display Energy Certificates (partial or full coverage)
3. Identify energy savings opportunities
4. Use a lead assessor to either do or sign off points 1 to 3 above
(unless fully covered by ISO50001)
5. Get a director to sign off that they have seen the recommendations
of the work
6. Notify the scheme administrator of ESOS compliance

9. 1. Conduct an ESOS assessment
Identify total energy consumption (buildings, installations, transport)
Common units (either cost or energy measurement unit)
90% of your total energy consumption = ‘Areas of Significant Energy
Consumption’
Determine coverage by ISO50001, Green Deal, DECs, existing audits
which meet the ESOS criteria
Determine additional ESOS audits that need to be undertaken prior to
5/12/2015
9

10. 2. Conduct ESOS audit(s)
Compliant audits:
Use12 months’ verifiable data
Analyse your energy consumption and energy efficiency
Identify practicable ways in which you can improve its energy
efficiency
Recommend cost effective ‘energy saving opportunities’
Identify the estimated costs and benefits of the ‘energy saving
opportunities’ recommended
Where 12 months data is not used or consumption profiling is not
undertaken justification must be provided.
10

11. 3. Identifying savings opportunities
from ESOS audits
11
Use life cycle cost analysis to determine cost
effectiveness rather than simple pay back
period where possible
Identify recommendations within your control
No requirement in the regulations to
implement the identified savings

12. 4. ESOS Lead assessors
Individuals that belong to an ‘approved
register’ = ‘lead assessors’
Approved bodies/registers on ESOS webpage
Lead assessors can be internal or external
Lead assessor signs off the work but can use
analysis from others.
12

13. 5. Director Sign off
13
Show recommendations of the assessment to
a board level director
2 directors if lead assessor is internal
No specific format required
Director confirms they have reviewed the
findings

14. 6. Notifying the EA
14
Online notification form accessed from ESOS
page on .gov.uk
Provide basic organisation details – not
energy data or improvements identified
Needs to be submitted by 5 Dec 2015 to be
compliant.

15. Keep an evidence pack
Cost Effective Energy Savings Opportunities
Identified
Details of your ESOS assessment and audits
(where applicable)
Certifications for alternative compliance routes
Details of any areas where you are not fully
compliant with the rules
Record of your directors & lead assessors sign off
15
There is no
prescribed
format for this

16. Further Detail on ESOS

17. Qualification
17
Employees = anyone with a contract of employment
regardless of hours
Trade/business of organisation are irrelevant if you meet
the criteria of an undertaking (as per Section 1161(1) of
the Companies Act 2006) and you qualify you are in
ESOS
If you are subject (mandatorily) to the Public Contracting
Regulations you are excluded from ESOS.
Use last accounts prior to 31/12/2014 submitted to
Companies House to determine qualification (or may
need to go further back if you are near the threshold).

18. Changes after qualification
18
Changes to organisation size/structure etc after the
qualification date do not effect qualification.
Any organisation sold by a qualifying organisation
between 31 Dec 2014 and 5 Dec 2015 needs to comply
with ESOS (either with old owner, new owner or on own)
Assets (not organisations) sold or acquired during period
31 Dec 2014 and 5 Dec 2015 do not need to included in
total energy consumption calculation or be audited.

19. Unconsumed supplies
Unconsumed supply rule can apply if
Energy is supplied by a participant to another
organisation
The energy can be measured or reasonably estimated.
Doesn’t matter who does the audit as long as
it covers all ESOS supplies
– (i.e. 2 or more qualifying participants could be compliant using
the same audit. They just reference the energy saving
opportunities relevant to them in their evidence pack)
19

20. Data time periods
20
Total energy consumption data
12 months data covering 31/12/14
Supplies for all assets covering a specified 12 month period
Can use £ or common energy unit
Purpose: To determine which assets will need to be covered by compliant
audits or alternative routes to compliance
Data for audits
12 months data starting from as far back as 6 Dec 2010
Audits can have been undertaken between 6 Dec 2011 and 5 Dec 2015
Assets don’t need to have been audited at the same time
Use energy units for analysis
Purpose: To determine energy savings opportunities

21. Areas of significant energy
consumption and audits
Flexibility about which energy is in the 90%
Could exclude all of one fuel type; or
Certain assets/activities; or
A combination
Don’t need to do a site visit to all assets, if they are very
similar then findings can be applied to group of assets
and consequent cost effective opportunities calculated on
this basis. Lead assessor determines necessary site visits
with the participant.
21

22. EA ESOS WEBPAGE:
https://www.gov.uk/energy-savings-opportunity-scheme-esos
ESOS Guidance:
https://www.gov.uk/government/uploads/system/uploads/attachm
ent_data/file/323307/ESOS_Guide_FINAL.pdf
ESOS Regulations:
http://www.legislation.gov.uk/uksi/2014/1643/contents/made
ESOS Helpdesk
esos@environment-agency.gov.uk
22

23. Richard Walsh, ISO 50001 Assessor, NQA
Richard will explain Northern Rails route to ESOS
compliance through ISO 50001 and what this means
for them.

24. Sustainability Live – 02/04/14
Presented by:
Richard Walsh - ISO50001 assessor - NQA
Prepared by:
Gareth Williams - Energy Solutions Manager - Northern Rail
NQA certification to ISO 50001 has enabled Northern Rail
to meet ESOS scheme requirements why? And what
additional benefits does certification provide.

25. Northern Rail – What are we?

26. Northern Rail and ESOS
• Large enterprises are defined within
DECC's consultation as enterprises
employing more than 250 people
and which have an annual turnover
exceeding EUR 50 million (nearly £43
million), and/or an annual balance
sheet total exceeding EUR 43 million
(nearly £37 million).
In accordance with the EU Energy Efficiency Directive,
‘large enterprises’ will be required to conduct energy
audits every four years, with the first occurring by 5
December 2015.
• The audits will cover
transport, buildings
and industrial
operations.

27. Estimated cost

28. ESOS STEPS vs ISO 50001 STEPS
• ESOS
Assessment
• Data
collection
• ESOS Audits
• ESOS
Assessment
• Data
collection
• ESOS Audits
• ESOS
Assessment
• Data
collection
• ESOS Audits
• ESOS
Assessment
• Data
collection
• ESOS Audits

29. ESOS Assessment vs ISO 50001
Energy Planning Section 4.4
• A review is required of the
total energy use and energy
efficiency of the organisation
covering key buildings, key
industrial operations and key
transport activities.
• This would include the
organisation identifying and
measuring an energy intensity
ratio.
4.4.3 Energy review
The organization shall develop, record, and
maintain an energy review.
Based on the analysis of energy use and
consumption, identify the areas of significant
energy use, i.e. identify the facilities, equipment,
systems, processes and personnel working for, or
on behalf of, the organization that significantly
affect energy use and consumption;
4.4.5 Energy performance indicators
The organization shall identify EnPIs appropriate
for monitoring and measuring its energy
performance. The methodology for determining
and updating the EnPIs shall be recorded and
regularly reviewed.

30. ESOS Assessment vs ISO 50001
Energy Planning Section 4.4
• The review would need to be
proportionate and sufficiently
representative ‘to permit the drawing
of a reliable picture of overall energy
performance’ of the organisation and
clear information on potential
savings, which identify and quantify
cost-effective energy savings
opportunities.
4.4.4 Energy baseline
The organization shall establish an
energy baseline(s) using the
information in the initial energy
review, considering a data period
suitable to the organization's
energy use and consumption.
Changes in energy
performance shall be measured
against the energy baseline(s).

31. ESOS Data Collection vs ISO 50001
Checking Section 4.6
• Organisations within the
scheme’s scope will need to
identify an approved ESOS
assessor (either an in-house
expert or an external consultant)
to conduct the assessment,
gather data on energy usage at
an appropriate level of detail, and
undertake the assessment by
December 2015, renewing the
assessment at least every four
years thereafter.
4.2.2 Management representative
Top management shall appoint a
management representative(s) with
appropriate skills and competence.
4.6 Checking
The organization shall ensure that the
key characteristics of its operations that
determine energy performance are
monitored, measured and analysed at
planned intervals.

32. ESOS Data Collection vs ISO 50001
Checking Section 4.6
• In practice, ESOS
assessments are intended to
recommend cost-effective
measures to save
organisations energy and
money. These might include,
for example, advice on
updating lighting systems,
taking steps to encourage
staff to adopt more energy
efficient behaviour, or (if
cost-effective) replacing
elements of a transport fleet.
4.6.3 Internal audit of the EnMS
The organization shall conduct internal
audits at planned intervals.

33. Northern’s ISO 50001 EnMS

34. Environmental and Energy Policy

35. Baseline data/energy review
• Data quality poor
– Manual input errors
– Invoice validation
– Missing invoices
If you cant measure it you cant
manage it!

36. If you cant measure it you cant
manage it!
•300 Electric AMR’s
installed
•30 Gas AMR’s installed
•Covering over 90% of our
electricity and gas
consumption

37. Energy Planning
1. Trains Traction Diesel Consumption (DMU)
2. Trains Traction Electricity Consumption (EMU)
3. Engineering TMD’s
4. Support Offices
5. Manned Stations
6. Unmanned Stations
7. Support Fleet
8. Bus Replacement
1. Trains Traction Diesel Consumption (DMU)
2. Trains Traction Electricity Consumption (EMU)
3. Engineering TMD’s
4. Support Offices
5. Manned Stations
6. Unmanned Stations
7. Support Fleet
8. Bus Replacement

38. Implementation and Operation
•Notch use
•Coasting
•Shutting off engines
3-4% savings
Traction fuel Responsible Driving Programme

39. Monitoring, Measurement and Analysis
Non Traction Energy Budgets
GIVE RESPONSIBILITY TO THE BUSINESS DIRECTORATES
WHICH USE THE SIGNIFICANT ENERGY CONSUMPTION
•Area West Director
•Area East Director
•Engineering Director

40. Make it Business as usual!

41. Monitoring, Measurement and Analysis
Company League Table

42. Implementation and Operation
Tenants impacts:
• Piccadilly 12th floor,
• Sowerby bridge
• Urmston Pub
• Hough Green taxi company

43. Implementation and Operation
Brand identity
– LOCO2
Management support

44. Implementation and Operation
10,876
kWh
2,454
kWh

45. Internal Audits

46. Benefits
• Systematic approach to energy management
• Senior Management buy in (requirement)
• Company objective = focus on the agenda
• Continual improvement:
– 9% reduction in non traction energy per passenger km
since 2009
– 0.5% reduction in traction (diesel) energy per passenger
km since 2009

47. ESOS Compliance
To allow for ESOS compliance the system:
ISO 50001 : 2011 – Energy Management Systems –
Requirements with guidance for use

48. Kit Oung, Energy Managers Association
Kit Oung, Board Member of Energy Managers
Association, Author of Energy Management in
Business and Energy Audits: The Key to
Delivering Real Energy Reductions

49. Q&A