Energy Savings Opportunity Scheme (ESOS) Services
Guarantee your ESOS compliance with TEAM
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 must comply to produce an audit over a 12-month period once every four years.
New legislation from the UK Government included an extension to the ESOS Phase 3 deadline and additional guidance on new requirements for organisations to meet.
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. It is expected that with the introduction of Phase 4 to the ESOS scheme, the Government will change the ESOS balance sheet and turnover thresholds to align with SECR, requiring more organisations to report on their ESOS.
ESOS Energy Scheme Compulsory Phases
We are currently in Phase 3 of the scheme. Audits must be completed and reported to the Environment Agency by 5 June 2024.
However, the Environment Agency will not take action against organisations that do not comply with this deadline, providing they register their account with the new IT system by 5 June 2024, and submit their notification of compliance by 6 August 2024. The regulatory enforcement extension period will end after 6 August 2024.
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:
| 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
Yes, the UK Government has confirmed an introduction of Phase 4. It is expected that with this, the Government will change the ESOS balance sheet and turnover threshold to align with Streamlined Energy and Carbon Reporting (SECR) and therefore bring more organisations into scope.
The new Phase will also have a focus on energy efficiency and net zero, as well as emissions reduction trajectories and information to help organisation put together a net zero plan or help them meet their existing plans.
The deadline for Phase 4 of the ESOS 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 Phase 3 will affect organisations that are certified under ISO 50001. Previously, these organisations have been exempt from ESOS reporting.
However, following on from recent changes to ESOS, 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.
ESOS Phase 3 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 reporting.
Below, we have included the submission dates for the ESOS Phase 3 Action Plan:
| Submission Phase | Action Plan Reporting Deadline | Action Plan Progress Reporting Deadline | Action Plan Progress Reporting Deadline | ESOS Compliance and Action Plan Results Reporting Deadline |
|---|---|---|---|---|
Phase 4 | 5 December 2024 | 5 December 2025 | 5 December 2026 | 5 December 2027 |
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), EnCO Consultant, Approved EnCO Practitioner
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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