We have recently completed a piece of Guidance for the Scottish Futures Trust on Establishing Energy Services Companies (ESCOs).

This Guidance will be of interest to any public sector body considering energy services requirements and, as part of that process, whether or not to pursue these requirements through establishment of an ESCO.

The question of whether to set up an ESCO is increasingly being asked and the Guidance is intended to address the key questions which need to be thought about:Questions and answers signpost

  • what is an ESCO;
  • why/when would a public sector ESCO be established or used;
  • what options are there for the legal form of an ESCO; and
  • what are the governance issues if an ESCO is established.

The Guidance builds on, but adds considerable detail to, an earlier report which we prepared back in 2007 for the London Energy Partnership called “Making ESCO’s Work”, which was quite widely consulted.

The hope is that the new Guidance will raise general awareness of the issues that arise if an ESCO route is being investigated.

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