The Energy Savings Opportunity Scheme Regulations 2014 implement the Energy Savings Opportunity Scheme (ESOS) scheme, which requires energy efficiency audits.
Undertakings under ESOS are required to calculate their total energy use, which must then be audited by an approved assessor. The assessor is required to identify reasonably practicable and cost effective ways to improve the undertaking’s energy efficiency.
These regulations implement Article 8(4), (5) and (6) of the Energy Efficiency Directive (2012/27/EU). The Environment Agency administrates the ESOS scheme across the UK, and specific regulators are in place for each state and offshore.
Compliance Periods
Undertakings subject to ESOS are required to have received an ESOS audit and submitted the respective notification to the Environment Agency by 5 December 2015. After this date, audits must be repeated and notified by 5 December every fourth year. These due dates are termed “compliance dates” under these regulations.
Scope
All large undertakings (and any small or medium undertakings within the same corporate group as a large undertaking) must participate in ESOS if they meet the definition of a “large undertaking” on 31 December 2014 or on 31 December preceding the start of each subsequent four year compliance period.
A “large undertaking” is defined as having:
Group undertakings are required to participate in ESOS as a group by default, although individual undertakings may participate individually if agreed in writing.
Exemptions
Public sector bodies and insolvent undertakings are outside the scope of ESOS.
ESOS audits are not required where organisations meet the following criteria:
ESOS Audits: Required Evidence
Undertakings subject to ESOS must compile “evidence packs”, which must include any data required to calculate total energy consumption and facilitate an energy audit. Data must be:
Evidence packs must also include further information as available, including:
Evidence packs must be retained for at least two of the four year compliance periods after they were first used.
ESOS Audits: Assessments and Notification
Undertakings subject to ESOS must appoint at least one approved lead assessor.
The assessor is required to:
Following completion of the ESOS audit, the lead assessor is required is required to notify the Environment Agency that the participating undertaking’s duties have been met. This notification must include confirmation that a “responsible officer” from the undertaking is satisfied they have complied with the scheme and information to be notified is correct.
Lead Assessors
Lead assessors under ESOS are those whose name appears on the approved register operated by the Environment Agency. The Environment Agency is required to keep this register up to date and review approvals at least every four years.
The Environment Agency is to determine whether persons qualify for approval on the basis of the competence requirements under PAS 51215 standard (Energy efficiency assessment – Competency of a lead energy assessor).
Enforcement
Enforcement notices and financial penalties may be issued against undertakings should they fail to meet their duties under these regulations.
RELEVANT GUIDANCE
The Finance Act 2014 brings proposals under the 2014 UK Budget into law, with impacts on a number of environmental taxes.
Climate change levy rates will increase from April 2015, although carbon price support rates are frozen at £18 per tonne CO2 from 2016/17 to 2019/20.
INTERNATIONAL ORGANISATION FOR STANDARDIZATION (ISO)
ISO 14001:2015 – DIS Stage: Draft for Public Comment
A Draft International Standard (DIS) stage version of the forthcoming ISO 14001:2015 standard has been made available for public comments.
The draft includes a number of significant changes to the emphasis and requirements of the standard, which will need to be addressed to maintain certification:
Timescales
The final draft of the standard is due for publication in March 2015. The final standard is scheduled for publication in the third quarter of 2015.
Transition to the New Standard
Organisations within the existing certification are expected to have three years to convert to the new standard. Organisations in the midst of implementing ISO 14001:2004 systems who do not yet hold certification when the 2015 standard is published are expected to have six months to convert to the new standard.
HM REVENUE & CUSTOMS (HMRC)
Exemptions from climate change levy for mineralogical and metallurgical processes guidance
The Finance Act 2014 introduced exemptions from the climate change levy for certain metallurgical and mineralogical processes. This document provides guidance to claimants of these exemptions and replaces the previous interim guidance.
DEPARTMENT FOR ENVIRONMENTA, FOOD & RURAL AFFAIRS (DEFRA)
River Basin Planning Guidance
Defra has published updated guidance on river basin planning in conjunction with the Environment Agency and Natural Resources Wales. This guidance sets out requirements for the river basin planning process and covers the second planning period (2015 to 2021).
EU Ecolabels: application and assessment process
This document provides an overview of the EU Ecolabel regime and the application process.
ENVIRONMENT AGENCY
River and coastal maintenance programme April 2014 to March 2015
The Environment Agency has published its programme of river and coastal maintenance work between 2014 and 2015 to reduce flood risk.
Climate Change Levy: Umbrella Agreements
The Environment Agency has published umbrella climate change agreements for the sawmill sector and data centre sector.
These sectors were brought into the scheme by the Climate Change Agreements (Eligible Facilities) (Amendment) Regulations 2014 on 1 July 2014.
NORTHERN IRELAND DEPARTMENT OF THE ENVIROMENT
Applying for permissions to operate a waste management site
This document provides guidance on applying for relevant authorisations to operate a waste management facility with a discharge consent.
SCOTTISH GOVERNMENT
Expert Commission on Energy Regulation
The Expert Commission on Energy Regulation was established to provide evidence on improvements to electricity and gas regulation in an independent Scotland. Now this exercise has concluded, the final reports have been published and provide a number of recommendations:
DEPARTMENT OF ENERGY & CLIMATE CHANGE (DECC)
EU Emissions Trading System and Carbon Price Support: compensation for indirect costs from 2014
DECC has updated guidance for energy intensive industries on compensation available for indirect costs from the EU emissions trading system (EU ETS) and carbon price support (CPS) mechanisms.
Compensation application forms have been made available alongside a compensation calculation spreadsheet concerning the CPS.
UK Vision for Phase IV of the EU ETS
This paper sets out the basis of the UK’s continued support for the EU ETS and priority areas for reform.
Electricity Demand Reduction Pilot: guidance and forms
The Electricity Demand Reduction (EDR) Pilot Scheme opened on 29 July 2014 to examine the potential for EDR as part of the Capacity Market. DECC has made guidance and forms for the pilot available.
Energy efficient products - helping us cut energy use
Big Energy Saving Network - Grant Offer Fund
DECC has updated its guidance to reflect the 2014/15 big energy saving network, which supports eligible third sector organisations and community groups to help and advise vulnerable consumers.
Renewables Obligation Order 2009 as amended by the Renewables Obligation (Amendment) Order 2014
DECC has published a consolidated version of the Renewables Obligation Order 2009, which reflects its amendments to date.
Implementing Geological Disposal
This white paper provides a renewed process for siting a Geological Disposal Facility for long-term management of higher activity radioactive waste.
The Future of the Energy Company Obligation: Small Area Geographies Eligible for ECO CSCO Support
This paper provides areas eligible for support under the Carbon Saving Community Obligation (CSCO).
Electricity Market Reform (EMR)
DECC has published further guidance on EMR under the Energy Act 2013.
Combined Heat and Power Quality Assurance Scheme (CHPQA)
CHPQA: Primary Energy Saving (PES) workbook
This tool assists persons responsible for the CHPQA scheme in determining primary energy savings of their CHP schemes against separately produced heat and power.
Use of CHPQA to obtain Enhanced Capital Allowances
The enhanced capital allowance scheme allows business to write off 100% of investment in specified technologies listed on the Energy Technology Criteria List against taxable profits for the respective period. This guidance document concerns good quality CHP and the scheme.
Green Deal
Answering your questions about the closure of the Green Deal Home Improvement Fund
The Green Deal Home Improvement Fund was closed on 24 July as the allocated budget has been spent. These documents address questions from consumers and suppliers.
DEPARTMENT FOR BUSINESS INNOVATION & SKILLS (BIS)
Restriction on Hazardous Substances Regulations: RoHS 2 guidance
BIS has revised its guidance on the RoHS regime. Medical devices and monitoring and control instruments were brought into RoHS for the first time on 22 July 2014.
DEPARTMENT FOR COMMUNITIES AND LOCAL GOVERNMENT (DCLG)
Building control performance standards
This document sets out required performance standards for local authorities and approved inspectors.
Improving planning performance: criteria for designation
DCLG has provided an explanatory memorandum on the criteria to be used to designate unsatisfactory local planning authorities.
Method for calculating the energy performance of buildings: notice of approval
This notice of approval has been reissued.
Approved software for the production of non domestic Energy Performance Certificates
This list records approved software for the production of non-domestic energy performance certificates.
MARITIME & COASTGUARD AGENCY (MCA)
National Contingency Plan
The MCA has published supporting documents to the UK National Contingency Plan, which collect information on major marine pollution incidents, assistance and cooperation arrangements and liability and compensation measures.
DECC, WELSH GOVERNMENT, NORTHERN IRELAND DEPARTMENT OF THE ENVIRONMENT, SCOTTISH GOVERNMENT
Strategy for the management of Naturally Occurring Radioactive Material (NORM) waste in the United Kingdom
This document presents joint proposals for a UK-wide strategy on the management of NORM waste. The strategy has been updated in light of responses received to a consultation on the draft strategy in the first half of 2014.
Man ordered to pay for spreading sewage rags and sanitary litter
Waste from cesspits, septic tanks, catch pits and grease traps was tipped on a field in Norfolk. Environment Agency officers found the waste across a field used by Richard Fiddian, trading as Norfolk Forest Products. An estimated 491,851gallons (2,236 m3) of waste had been deposited on the site over nearly 3 years.
Mr Fiddian was ordered by Norwich Crown Court on 25 July to hand over £20,125 proceeds under the Proceeds of Crime Act and was also fined £750 and ordered to pay full costs of £3,375.
The Environment Agency told the court that although Mr Fiddian was registered to transport waste legally, his site at North Barningham was not authorised to take it. Waste including septic tank and cess pit waste had been repeatedly spread over the land between April 2010 and February 2013. Waste identified on the land included soiled condoms, tampons, sanitary towels, baby wipes, toilet paper and other unidentifiable rag. It smelt strongly of sewage.
Perth recycling company fined £6,000 for waste offences
A Perth recycling company was fined £6,000 at Perth Sheriff Court on 9 July for a series of environmental offences following an investigation into a large fire at its site in 2012.
Wyllie Recycling Limited pled guilty to two charges of contravening its waste management licence by:
The company was fined £4,000 in respect of the first charge and £2,000 in respect of the second charge.
The company also pled guilty to two counts of failing to ensure that a copy of consignment notes were sent to SEPA before two consignments of special waste were removed from site, although the company was admonished in respect of these two charges.
Oldbury man sentenced for running illegal waste operation
Balwant Singh Baghria was sentenced at Wolverhampton Crown Court on 11 July 2014 to 12 months imprisonment suspended for 2 years and disqualified from being a company director for 7 years for his part in illegal waste operations in Oldbury, West Midlands. Two co-defendants were sentenced at an earlier hearing.
The charges were brought by the Environment Agency under the Environmental Permitting (England & Wales) Regulations 2010 and the Environmental Protection Act 1990.
The prosecution told the Court that between the period July 2010 and July 2012, the defendants engaged in large scale, commercial tipping operations at two sites. Substantial amounts of waste were deposited at ‘The Yard’, Nelson Street and ‘Butler’s Yard’, Parsonage Street in Oldbury.
The site at Nelson Street, Oldbury, initially operated as a fully permitted facility with an environmental permit in place. However, over a period of time the site deposited and stored waste over and above the maximum storage capacities, to dangerous levels. Waste was also then deposited illegally on land opposite, known as Butler’s Yard, where there was no environmental permit in force.
Interventions from the Environment Agency, Health and Safety Executive (HSE) and Sandwell Planning Authority were unsuccessful in halting operations. As a result, officers from the Environment Agency undertook a surveillance operation in order to gather evidence in support of a prosecution. Operations finally ceased when Ranbir Singh was arrested in July 2011.
The Environment Agency incurred costs of over £101,000 to clear some of the waste at Nelson Street to prevent damage being caused to a neighbouring business. Sandwell Planning Authority incurred costs of around £4,600 for clearing waste from the highway outside both sites. The remaining waste at Nelson Street was removed by the landowner at a cost of approximately £35,000. Waste at Butler’s Yard, Parsonage Street remains to this day, where it has caused problems with odour and vermin.
A timetable has been set in relation to confiscation proceedings under the Proceeds of Crime Act 2002 in relation to the financial gain made by the defendants throughout the offending period.
