July 2014

DECC publishes Eunomia Report on ESOS

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Along with its guidance on how companies will need to meet the requirements of the Energy Saving Opportunity Scheme (ESOS), the Department of Energy and Climate Change (DECC) recently published a supporting study by Eunomia, which considered whether different approaches to reporting information from energy audits are likely to prompt behaviour change and higher take-up of energy efficiency measures.

By way of Rapid Evidence Assessment (REA) the goal of the study was to provide evidence to help DECC understand the extent to which public disclosure and/or central reporting of energy audit information, driven by ESOS, will result in greater energy savings. ESOS will be the key policy mechanism to enable the UK’s compliance with Article 8 of the EU Energy Efficiency Directive (2012/27/EU) and requires that all non-SME businesses in the UK undertake energy audits every four years

Whilst Eunomia’s study found that there was evidence to suggest that public disclosure of audit information would drive greater energy savings, this was not considered by DECC to be sufficiently robust, in terms of demonstrating causality, to justify the potential additional costs to businesses and Government, which would be brought about by mandatory public disclosure. Consequently, public disclosure under ESOS is voluntary, albeit Directorial sign-off upon energy audits is obligatory, which it is hoped may spur businesses towards actually implementing some of the energy saving measures identified during the audit process.

Eunomia’s REA on behalf of DECC can be accessed here.