Energy Saving Opportunity Scheme (ESOS) Phase 3 Compliance

Energy Savings Opportunity Scheme (ESOS) Phase 3 Compliance

ESOS Phase 3 Deadline, Key Dates & TEAM’s Consultation Service

What is ESOS Phase 3?

The Energy Savings Opportunity Scheme (ESOS) was introduced to incentivise large UK based organisations to implement energy savings measures. The scheme requires companies to carry out audits every 4 years on the energy usage of their buildings, processes and transport accompanied by cost-effective recommendations to help businesses reduce energy demand and improve energy efficiency.

We are currently in Phase 3 of the ESOS scheme. The long-awaited outcome of the ESOS consultation was published in July 2022 and has brought some changes into Phase 3 that organisations will need to comply with, including the announcement of a Phase 4.

It has been announced that the Phase 3 compliance deadline has been extended to 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.

Our team of CIBSE Accredited Low Carbon Assessors, are fully up to date and knowledgeable on the ESOS phase 3 changes and can help you make the most of the ESOS energy scheme.

Who needs to comply with ESOS Phase 3?

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 Phase 3 Qualification Date, Compliance Period and Deadlines

 Qualification Date4 Year Compliance PhaseCompliance Date
Phase 331 Dec 20226 Dec 2019 – 5 June 20245 June 2024

How TEAM can help you comply with ESOS Phase 3

Throughout your review our ESOS consultation 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 once the outcome of the consultation is published.

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

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. 

The ESOS Phase 3 qualification date is from 6 December 2019 to 5 June 2024. Despite the ongoing consultation it is never too early to get started with your ESOS Scheme Compliance. Many organisations are completing their site sample building audits now ahead of the data audit phase of the scheme to ensure they can meet the compliance deadline.

The Environment Agency will not take action against organisations that do not comply with the 5 June 2024 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 and 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 041531 or contact us online and we will get in touch with a quote.

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. 

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 the Energy Action Plan and how we can help. 

Below, we have included the submission dates for the ESOS Phase 3 Action Plan:

Submission Phase Action Plan Reporting Deadline Action Plan Reporting Deadline Action Plan Reporting Deadline
Phase 3
5 December 2024
5 December 2025
5 December 2026

What our customers say

"The service is professional, efficient and communication throughout the process has been excellent."
Lawrence Hunt & Co Limited

Meet our ESOS Consultants

Our in-house, experienced, ESOS consultants will provide ESOS phase 3 guidance and help you fully understand the 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), MSc, ESOS Lead Assessor

BSc (Hons), Approved EnCO Practitioner, ESOS Lead Assessor

BSc (Hons), EnCO Consultant, ESOS Lead Assessor

Get an ESOS Review from one of our Accredited Consultants

Call 01908 690018 and find out how our consultants can help you make the most of the ESOS energy scheme  

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