Complying with ESOS for businesses has become increasingly urgent as failure to do so will result in heavy fines.

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The Energy Savings Opportunity Scheme (ESOS) has been introduced on the back of a European directive making it compulsory for qualifying businesses to carry out a pre-defined energy audit by December 2015.

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Complying with ESOS requires certain criteria that you must fulfil to be classed as a qualifying business (or undertakings as businesses and organisations are referred to here)?

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Complying with ESOS – who qualifies?

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The Environment Agency are enforcing ESOS within the UK and their definition for qualification is as follows –

 

A large undertaking is any UK undertaking that meets either one or both of the conditions below:

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– it employs 250 or more people
– it has an annual turnover in excess of 50 million euro (£38,937,777), and an annual balance sheet total in excess of 43 million euro (£33,486,489)

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You also must take part in ESOS if your undertaking is part of a corporate group which includes another UK undertaking that meets either of these conditions.

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Where a corporate group participates in ESOS, unless otherwise agreed the highest UK parent will act as a ‘responsible undertaking’ and be responsible for ensuring the group as a whole is complying with ESOS.

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The definition of an undertaking includes an overseas company with a UK registered establishment which has 250 or more UK employees (paying income tax in the UK).”

For those businesses who are close to the above qualification levels the conditions apply to your business as at 31st December 2014 or the preceding 12 months.

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In terms of the definition of an employee for the purpose of qualification, a person is employed by an undertaking if they are:

• an employee
• an owner / manager
• a partner.

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An ‘employee’ is a person employed under contracts of service. Their contracted hours and status (full time / part time) are irrelevant to their classification as an employee.

The number of employees means the average number of people employed by the undertaking in the year.

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If you are concerend about complying with ESOS, we are here to help. Why not contact us now for a free, no obligation chat into what is involved.