Energy Act 2023

256 Requirement for assessment of energy consumption

(1) ESOS regulations may require the carrying out of assessments of—

(a) a participant’s energy consumption;

(b) the greenhouse gas emissions resulting from that consumption.

Such an assessment is referred to as an “ESOS assessment”.

(2) The provision that may be made by virtue of subsection (1) includes in particular provision about—

(a) the frequency of ESOS assessments;

(b) the period or periods to which assessments must relate;

(c) how assessments are to be carried out;

(d) the information that must be provided or obtained for the purposes of an assessment;

(e) the matters that must be taken into account in an assessment;

(f) record-keeping in relation to an assessment.

(3) ESOS regulations may make provision requiring an ESOS assessment, or specified parts of an ESOS assessment, to be carried out, approved or audited by a person appointed by a participant (referred to as “an assessor”).

(4) Regulations made by virtue of subsection (1) may include provision enabling or requiring an ESOS assessment to include recommendations relating to energy savings or emissions reductions.

(5) The provision that may be made by virtue of subsection (4) includes in particular provision about—

(a) the matters about which recommendations may, must, or must not be made;

(b) the matters that must be taken into account in making a recommendation;

(c) the carrying out of a cost-benefit analysis before including a recommendation in a report.

(6) “Cost-benefit analysis”, in relation to a recommendation or requirement to take action, means—

(a) an estimate of the likely costs to a participant of acting in accordance with the recommendation or requirement;

(b) an estimate of the energy savings or emissions reductions likely to result from such action;

(c) an analysis of the costs referred to in paragraph (a) together with an analysis of the savings or reductions referred to in paragraph (b) and of any other benefits likely to arise.

(7) ESOS regulations may make provision about the reporting of ESOS assessments, including in particular provision—

(a) about the production of written reports;

(b) about the form and content of such reports;

(c) about the dissemination of such reports within an undertaking and between related undertakings.

(8) ESOS regulations may make provision requiring a participant to notify a scheme administrator of specified matters relating to the participant’s compliance with requirements imposed by virtue of this section and may in particular include provision—

(a) about the procedure for giving such notice;

(b) about the form and content of notices;

(c) about the publication of certain information contained within a notice;

(d) requiring a participant to justify its choice of assessor.

(9) ESOS regulations may provide for any requirement imposed by virtue of subsection (1)—

(a) to be treated as having been complied with by a participant in specified circumstances, or

(b) not to apply to a participant in specified circumstances.