Explanatory note

These Regulations make changes in relation to the Energy Savings Opportunity Scheme (“ESOS”) which was established under the Energy Savings Opportunity Scheme Regulations 2014 (S.I. 2014/1643) (“the 2014 Regulations”).

Chapter 1 of Part 3 of the 2014 Regulations is amended to expand the exclusion for insolvent undertakings to include any undertakings subject to insolvency proceedings during the period starting with the qualification date and ending with the compliance date. This exclusion also extends to any group undertakings in respect of which the large undertaking in that group is subject to insolvency procedures, unless there is another large undertaking in that group which is solvent.

Chapter 1 of Part 4 of the 2014 Regulations is amended to require lead assessors to notify their approval body of the completion of an ESOS assessment and to provide that approval body with contact details for the responsible undertaking. This Chapter is also amended to require all estimates of energy consumption or energy savings to be calculated in kWh.

A new Chapter 3B is inserted into Part 4 of the 2014 Regulations, which requires participants to complete a review of the action plan measures identified in the previous compliance period and report where these were not met. Regulation 27B of the 2014 Regulations is moved to fall under Chapter 3B of Part 4 and is amended so that responsible undertakings must identify all measures taken, and estimate the energy savings achieved by these measures, since the previous compliance date.

Chapter 4 of Part 4 and Part 5 of the 2014 Regulations are amended to clarify the information which needs to be retained, notified and published for all undertakings, including those who are deemed to have complied with the Scheme by virtue of the updated Part 6.

Part 6 of the 2014 Regulations is amended to remove Display Energy Certificates and Green Deal Assessments as alternative routes to compliance. Where a participant’s total energy consumption or significant energy consumption (that is, the areas of energy consumption comprising 95% or more of that participant’s energy consumption) is compliant with ISO 50001 certification, they are deemed to have complied with the duty to appoint a lead assessor, carry out an ESOS audit and produce an ESOS report. Participants for whom ISO 50001 certification covers some of their energy consumption, but not their total or significant energy consumption, are exempt from the duties in Chapter 3 of Part 4 of the 2014 Regulations in relation to the energy consumption which is certified under ISO 50001. An additional route for compliance is inserted for undertakings whose energy consumption is zero kWh. Those undertakings are exempt from the requirement to complete an ESOS assessment, as well as the duties under Chapters 2A to 4 of Part 4 and Part 6A of the 2014 Regulations.

The requirement for an additional ESOS progress update is inserted into Part 6A of the 2014 Regulations, to cover the year immediately following the further progress update.

Parts 8 and 9 of the 2014 Regulations are amended to reflect the changes made by these Regulations.

Schedule 3 of the 2014 Regulations is amended to reflect the changes made to Chapter 4 of Part 4 and Part 5. Schedule 5 of the 2014 Regulations is amended to correct an error and reflect the changes made by these Regulations.

A full impact assessment has not been produced for this instrument as no, or no significant impact on the private, voluntary or public sectors is foreseen. A de minimis impact assessment is available from the Department for Energy Security and Net Zero, 3-8 Whitehall Place, London, SW1A 2AW.