What is ESOS?
The Energy Savings Opportunity Scheme (ESOS) was introduced to incentivise large UK based businesses to implement energy saving measures and help reduce the UK’s carbon emissions as we work towards becoming net zero by 2050. The scheme requires affected businesses to carry out energy surveys accompanied by cost-effective recommendations to reduce energy demand and improve their energy efficiency.
It is a mandatory requirement for organisations that comply to produce an audit over a 12-month period once every four years.
Download your free guide to ESOS here and discover why ESOS and Streamlined Energy and Carbon Reporting (SECR) work better together. Smart organisations combine ESOS and SECR.
Energy Savings Opportunity Scheme Compulsory Phases
We are currently in Phase 4 of the scheme. Audits must be completed and reported to the Environment Agency by 5 December 2027.
ESOS help is available from certified consultants if you need support with any of the phases.
The timings of each ESOS phase is shown here:
Who needs to comply with ESOS?
Companies need to comply if they are:
- Registered or based in the UK or a UK establishment
- Employ 250 people or more or
- Have an annual turnover greater than £44m, and an annual balance sheet greater than £38m
SMEs and public-sector bodies are generally exempt from the ESOS scheme.
| Qualification Date | 4 Year Compliance Phase | Compliance Date | |
| Phase 1 | 31 Dec 2014 | 6 Dec 2011 – 5 Dec 2015 | 5 Dec 2015 |
| Phase 2 | 31 Dec 2018 | 6 Dec 2015 – 5 Dec 2019 | 5 Dec 2019 |
| Phase 3 | 31 Dec 2022 | 6 Dec 2019 – 5 June 2024 | 5 June 2024 |
| Phase 4 | 31 Dec 2026 | 6 Dec 2023 – 5 Dec 2027 | 5 Dec 2027 |
There has been some new requirements that have been introduced to ESOS Phase 3, to increase the carbon and cost savings made from the scheme.
In Phase 3 of your ESOS submission you will need to:
- Ensure at least 95% of your total energy consumption is covered, which has increased from 90% that was required in Phase 2
- Provide more detail on the calculation of your energy consumption
- Share details of your ESOS report with all members of your organisation
- Include specific information on how you plan to make energy saving opportunities throughout your business, this includes costs, benefits and how you plan to implement them
- Explain how the site visits that were carried out is a representation of your organisation’s energy use
- ESOS Phase 3 now requires all participants to produce an ESOS report, including those using alternative compliance routes such as the ISO 50001 energy management system
- Submit a yearly Energy Action Plan following your ESOS Phase 3 submission
- Submit a yearly Progress Update which will explore how successfully you are implementing your energy saving opportunities
- The Environment Agency will publicly disclose your ESOS data, by publishing the information in your compliance notification, as well as publishing your Action Plan and Progress Reports
The deadline for Phase 4 of the Energy Savings Opportunity Scheme is 5 December 2027, with a compliance period of 6 December 2023 – 5 December 2027. However, it is never too early to get started, site energy audits can start from January 2024. If you need support with any of the ESOS Compliance Phases, our ESOS consultants will help guarantee your compliance.
Our team of CIBSE Accredited Low Carbon Assessors, Low Carbon Consultants and ESOS Lead Assessors can help you make the most of the ESOS energy scheme. They gained valuable insights during ESOS Phase 1 and 2 in supporting clients through the Environment Agency audit, which will benefit businesses in the ESOS Phase 3 compliance process.
Our team of ESOS consultants can support you in the following ways:
- Help you fully understand the ESOS scheme and what it means for your business
- Collate data for your building, transport and process energy use
- Analyse your data and energy consumption
- Review your portfolio to determine the number of energy surveys required within the site sampling requirements
- Carry out the building(s) energy surveys
- Produce the ESOS survey reports including cost-effective energy efficiency recommendations
- Maximise the ESOS scheme benefits
- Conduct the ESOS review, verification and sign-off
- Prepare the ESOS submission document, evidence pack and sign-off
- Review your ESOS audit results
- Respond to any queries or support on audits conducted by the Environment Agency.
If a qualifying organisation doesn’t meet the deadline, they can expect to receive a basic fine of £50,000, plus an additional fine of £800 per day up to a maximum of 80 days.
Mandatory reporting for ISO 50001 Users
One of the biggest changes to ESOS that came in Phase 3 affects organisations that are certified under ISO 50001. Previously, these organisations have been exempt from ESOS reporting.
These organisations will need to submit detailed reporting that includes data on energy savings achieved by the business since the previous compliance period.
Find out more about ISO 50001 Energy Management System.
Find out if you qualify for ESOS Phase 4
It sounds like you qualify for ESOS Phase 4.
TEAM Energy can help with your compliance and help you to save energy and money.
Contact TEAM Energy:
Call us on 01908 690 018
Email us at enquiries@teamenergy.com
It seems as though you do not qualify for ESOS Phase 4, but you may still qualify as a result of other factors. Contact TEAM Energy to discuss how we can help you on your energy reduction journey.
Contact TEAM Energy:
Call us on 01908 690 018
Email us at enquiries@teamenergy.com
Six business benefits of complying with ESOS
ESOS Energy Action Plan Submissions
Organisations will be expected to submit Energy Action Plans to provide annual progress updates to track whether they have achieved the energy saving actions in their plan. Find out more about ESOS Action Plan reporting.
Below, we have included the submission dates for the ESOS Phase 3 and Phase 4 Action Plan:
| Submission Phase | ESOS Phase Compliance and Action Plan Results | New Action Plan | Action Plan Annual Progress Update | Action Plan Annual Progress Update |
|---|---|---|---|---|
Phase 3 Action Plan | N/A | *5 December 2024 | 5 December 2025 | 5 December 2026 |
Phase 4 Action Plan | 5 December 2027 | 5 December 2028 | 5 December 2029 | 5 December 2030 |
*The deadline for the first Energy Action Plan is the 5 December 2024, however the Environment Agency has announced an extension and will accept Action Plans submitted by the 5 March 2025.
Meet our ESOS Consultants
Our in-house, experienced, ESOS consultants will help you fully understand the ESOS scheme and what it means for your business. Each consultant has the breadth of skills, expertise and sector experience to help you make the most of the ESOS energy scheme.
BSc (hons), Approved EnCO Practitioner, ESOS Lead Assessor
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Speak to one of our ESOS consultants
Call 01908 690018 and find out how our consultants can help you make the most of the ESOS energy scheme