Part 11: Energy Savings Opportunity Schemes Section 254: Energy savings opportunity schemes
The purpose of this section is to set out powers for the establishment and operation of one or more Energy Savings Opportunity Schemes (ESOS).
	Subsections (2) and (3) set out that an ESOS scheme imposes requirements on undertakings as defined under the Companies Act 2006, for the purposes of enabling or requiring actions relating to assessing undertakings’ energy consumption or resulting greenhouse gas emissions, and enabling, encouraging or requiring actions relating to identifying and achieving energy savings or emissions reductions. The purposes also include assessment of costs and benefits of possible energy savings or emissions reductions and setting out plans or targets for achieving them.
	Subsections (4) and (5) explain the meaning of the terms ‘energy saving’ and ‘emissions reduction’ for the purpose of interpreting Part 11.
	Subsection (6) enables regulations to make provisions determining the energy consumption and resulting greenhouse gas emissions for which an undertaking is responsible.
	Under provisions in subsection (7), regulations may impose requirements on persons, give them functions or enable them to exercise judgments on matters.
	Subsection (9) sets out that the existing ESOS scheme regulations can be treated as having been made under these new powers and explains that the term ‘compliance body’ in the existing regulations is covered by a reference to ‘scheme administrator’ in Part 11. A scheme administrator, as set out by section 260, is a public authority which may be appointed by regulations to carry out functions relating to administration, compliance monitoring and enforcement of an ESOS scheme’s requirements.