To support the UK Government’s target to be Net Zero by 2050, Phase 4 will focus on how organisations are addressing their energy efficiency AND how they plan to become net zero. New changes to Phase 4 of the ESOS scheme could include:

• With a focus on net zero, organisations may need to explore their net zero commitments and targets and the actions they need to take to achieve them
• Organisations may need to also identify the potential risks in moving to net zero and emission reduction trajectories
• Information to support organisations in creating a carbon reduction plan (CRP) or helping them to meet their existing carbon reduction strategies
• Increased clarity and guidance on site audit sampling, including most likely a minimum threshold for both the number of buildings audited and percentage of total energy consumption sampled
• Reports will need to meet either ISO 50002 or EN 16247 auditing standards. Currently, this is only a recommendation in Phase 3 guidance
• Display Energy Certificates (DEC) and Green Deal Assessments will be removed as a route to compliance
• For organisations not in scope for SECR, a reporting function on the ESOS web portal will be developed to allow for annual progress reporting. From Phase 4 onwards a requirement will be introduced that if the goal has not been met, the participant must explain why
• Following Streamline Energy and Carbon Reporting (SECR), it will become mandatory for some data, such as a minimum energy or carbon reduction targets and net zero assessments to be made public
• ESOS reports will be required to improve the collection and monitoring of energy data, setting of controls, and appropriate staff training, both within the descriptive element of the ESOS report and within audit recommendations
• Ensuring that businesses are alert to their future electricity demand in the context of system impact will be considered as part of the net zero assessment from the Phase 4 compliance period
• In a similar way to Phase 3, the data in organisation’s ESOS submissions will be made publicly available
• Phase 4 of the ESOS scheme is expected to require more data from organisations compared to previous phases

The start of the ESOS Phase 4 compliance period began on 6 December 2023, our expert energy ESOS consultants are knowledgeable and up to date with ESOS compliance legislation and what will be required from organisations. Throughout your review we will help you collate data for your building, transport, and process energy use, analysing the data and reviewing your portfolio.

We will carry out your building’s energy surveys, produce the ESOS survey reports and ensure you can maximise the benefits of the scheme through conducting the ESOS review, verification and sign off. Our team of lead assessors will include any necessary changes to your audit and report introduced to the scheme by the Environment Agency.

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.

If a qualifying organisation misses 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.

For more information, you can speak to a member of the team on 01908 041501 or contact us online and we will get in touch with a quote.