Press release

Energy efficiency measures for large firms could see £1.9 billion net benefit for UK

Proposals for new energy saving assessments for larger firms in the UK to enable companies to identify opportunities to save money on energy bills.

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government


Proposals for new energy saving assessments for larger firms in the UK have been published today by the Department of Energy and Climate Change (DECC). These assessments, required by the new Energy Savings Opportunity Scheme (ESOS), will enable companies to identify opportunities to save money on energy bills through improved energy efficiency and could benefit the UK by £1.9 billion.

Under the scheme, which is being developed as part of the UK’s implementation of the EU Energy Efficiency Directive, large enterprises will be required to undertake ESOS assessments to identify cost-effective ways to invest in energy efficiency, helping reduce energy bills and increase competitiveness.

Organisations who take up energy efficiency recommendations will face lower energy bills – on average, an enterprise taking up recommendations from energy savings assessment will invest £15,000 per year in energy efficiency measures and benefit from bill savings of £56,400 per year.

Energy and Climate Change Minister Greg Barker said:

“Effective energy efficiency means cutting out waste and increasing profits. These new energy saving assessments will help our largest firms identify where money can be saved by installing energy efficiency measures. The potential benefits of cutting down on energy waste are significant - £56,400 savings per year on the energy bills of the average large business, and £1.9 billion benefits to the UK as a whole.”

Energy Minister Michael Fallon said:

“Investing in energy efficiency can hugely benefit our big businesses, helping British businesses get ahead in the global race. Energy saving assessments will show exactly where the biggest savings can be made and if firms then go forward and invest, they will soon see the benefits.” There will be no legal requirements to implement the energy saving measures identified, but the assessments could help large businesses, large charities and other large organisations to consider the benefits of investing in energy efficiency.

Net social benefits of £1.9 billion could be achieved even if 6 per cent of the potential energy savings identified through assessments in buildings and industrial processes are implemented by participating organisations.

The new scheme will complement other Government initiatives aimed at helping business make investments to improve energy efficiency, such as the non-domestic Green Deal, Electricity Demand Reduction, and Enhanced Capital Allowances for energy-saving plant and machinery.

Notes for editors:

  1. The consultation on ESOS proposals will run until 3 October 2013. The consultation document can be found online on GOV.UK

  2. Responses to the consultation should be submitted to:

  3. The new scheme will target all large enterprises. As such, all enterprises with 250 employees or more will participate in ESOS. Organisations with fewer than 250 people will also be included if both their annual turnover exceeds EUR 50 million and annual balance sheet total exceeds EUR 43 million. Public sector organisations are not covered by this new scheme as other parts of the EU Energy Efficiency Directive require public sector action on energy efficiency.

Published 11 July 2013