1. David Inman BSc(Hons) FRICS CEnv AIEMA PCQI TechIOA Director/Chartered Environmental Surveyor Introduction to the Energy Saving Opportunity Scheme (ESOS) May 2013 Regulated by RICS

2. Article 8 of the EU Energy Efficiency Directive, EU member states must introduce independent and cost-effective energy audits for all 'large enterprises The Energy Savings Opportunity Scheme (ESOS) is the Governments proposed approach to implementing this requirement. What is ESOS 3. ESOS Applies to businesses and other UK organisations outside of the public sector, such as charities with 50 employees or more annual turnover exceeding 50 million or annual balance sheet total exceeding 43 million. What is ESOS 4. UK Government currently reviewing consultation responses Current situation 5. ESOS energy audits must be undertaken by 5 December 2015, and then at least every four years from the date of the previous audit Requirement 6. The minimum criteria for energy audits are: Audit is based on up to date, measured, traceable operational energy data & electricity load profiles Detailed review of energy consumption, including for transport Build in life-cycle cost assessment instead of simple payback Profile energy performance Provide validated calculations for proposed energy savings measures Energy use data is retained and used for future tracking 7. The minimum criteria for energy audits are: Audit is based on up to date, measured, traceable operational energy data & electricity load profiles Detailed review of energy consumption, including for transport Build in life-cycle cost assessment instead of simple payback Profile energy performance Provide validated calculations for proposed energy savings measures Energy use data is retained and used for future tracking 8. The minimum criteria for energy audits are: Audit is based on up to date, measured, traceable operational energy data & electricity load profiles Detailed review of energy consumption, including for transport Build in life-cycle cost assessment instead of simple payback Profile energy performance Provide validated calculations for proposed energy savings measures Energy use data is retained and used for future tracking 9. The minimum criteria for energy audits are: Audit is based on up to date, measured, traceable operational energy data & electricity load profiles Detailed review of energy consumption, including for transport Build in life-cycle cost assessment instead of simple payback Profile energy performance Provide validated calculations for proposed energy savings measures Energy use data is retained and used for future tracking 10. The minimum criteria for energy audits are: Audit is based on up to date, measured, traceable operational energy data & electricity load profiles Detailed review of energy consumption, including for transport Build in life-cycle cost assessment instead of simple payback Profile energy performance Provide validated calculations for proposed energy savings measures Energy use data is retained and used for future tracking 11. The minimum criteria for energy audits are: Audit is based on up to date, measured, traceable operational energy data & electricity load profiles Detailed review of energy consumption, including for transport Build in life-cycle cost assessment instead of simple payback Profile energy performance Provide validated calculations for proposed energy savings measures Energy use data is retained and used for future tracking 12. Proposed alternatives routes to compliance ISO 50001 energy management certification ISO 14001 environmental management certification (if an energy audit has been part of this) These management systems must cover the entire UK organisation or a ESOS audit must be undertaken for the remainder of the business. Alternatives 13. The Government intends to sponsor the development of a Publicly Available Specification (PAS) by the BSI This will set out the level of competence required to conduct ESOS assessments. Training and competence 14. www.gov.uk More information 15. Twitter @DIEMLtd www.diemltd.co.uk www.youtube.com/diemltdtv