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Energy Savings Opportunity Scheme (ESOS)

Ensure ESOS compliance with the creation of an ESOS audit and ESOS action plan to meet the UK Legislation.

What is ESOS?

The Energy Savings Opportunity Scheme (ESOS) is a UK energy legislation for meeting the EU Energy Efficiency Directive Article 8. ESOS came into force on 17 July 2014. ESOS is a mandatory compliance scheme for large organisations that met qualifying criteria with the goal of reducing EU energy consumption by 20% by 2020. ESOS compliance occurs every 4 years in four yearly phases and requires regular energy audits that help large businesses conserve energy. ESOS Phase 3 has just concluded and we are moving into Phase 4.

ESOS Phase 3 Action Plan Deadline – March 5, 2025

The Energy Savings Opportunity Scheme (ESOS) Phase 3 deadline passed on the 5th June 2024. The next ESOS deadline is the submission of the ESOS Action Plan on March 5th 2025 which is now a legal requirement as of November 2024. 

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Does my Organisation Need to comply to ESOS?

The criteria for ESOS compliance are for large organisations that met the following:

  • More than 250 employees or
  • A turnover of more than €50m (£44.1m) and an annual balance sheet total of more than €43m (£37.9m)
  • An overseas organisation with over 250 employees in the UK

Organisations include corporate bodies and partnerships, and any unincorporated body that is conducting trade whether for profit or otherwise, are all subject to ESOS.

Public sector organisations are not subject to ESOS, although some universities with significant private funding may well be.

What does ESOS Require?

ESOS compliance requires the production of an energy audit of the entire operation’s energy consumption for the four year period. The first report for ESOS Phase 3 have passed and needed to be lodged with the Environment Agency by 5 June 2024.

The data used for ESOS Phase 3 reporting must cover a 12-month period known as your reference period. If you were to aim for the deadline of 5 June 2024, the latest your reference period can begin is 6 June 2023. Therefore you must ensure your organisation has either finished gathering its data for Phase 3 or is partway through gathering it.

The updated requirements for esos phase 3 now include: 

  • An energy audit that must cover 95% of your organisation’s energy  – (known as the ‘de minimis’ rule and was previously 90%) and be reviewed and approved by a qualified ESOS Lead Assessor.
  • Additional detail on the calculation of energy consumption which must include energy intensity ratios.
  • An explanation of how site visits that are conducted for energy audits are representative of energy use (if not all sites are being audited).
  • Ensuring all members of the corporate group have access to the ESOS report findings.
  • The cost-benefit analysis and a plan for implementing energy saving opportunities.
  • An overall action plan of the energy saving opportunities. This ESOS action plan has a deadline of 5 March 2024.
  • Two annual progress updates in the 2 years following the action plan deadline.

    To aid your ESOS compliance we also recommend you gain:

    Click here for more detailed information on preparing your ESOS assessment.

    Avoid Serious Penalties

    The Environment Agency (EA) will not hesitate to impose penalties for organisations who are mandated to comply with ESOS but did not participate or failed to meet the required standards. For each separate breach of the ESOS regulations expect the following penalties:

    • Failure to notify: £5,000 plus £500 for each working day an organisation remains in violation regardless of whether the organisation has undertaken an energy audit.
    • Failure to maintain records: £5,000, plus a “sum representing the cost to the compliance body of confirming that the responsible undertaking has compliance complied with the scheme,” which must be resolved.
    • Failure to undertake an energy audit: £50,000 plus £500 for each working day an organisation remains in violation. There is more leniency for new entrants with a reduced of £5,000.
    • Failure to comply with an enforcement/penalty notice: £5,000 plus £500 for each working day an organisation remains in violation
    • False or misleading statement: £50,000.
    • Non compliance being made public: the name of your organisation and the amount you were fined will be published on the EA to website.

    Have you recieved an ESOS Phase 3 enforcement notice?

    Speak to our energy experts to begin your compliance journey

    Ensure ESOS Compliance With PES

    Professional Energy Services can help your organisation ensure ESOS Compliance.

    Our energy consultants have a wealth of industry experience in carbon compliance and coupled with our energy management software, we can perform the required energy audits to generate a consumption report and act as the required lead Assessor for ESOS compliance.

    You will receive:

    • Guarantee of compliance to ESOS including:
      • ESOS Audit and consumption report
      • ESOS Action Plan and Anual Progress Reports
    • Energy saving strategies to implement
    • Time back to focus on the day to day of running your business
    • ESOS report findings to aid compliance to other carbon initiatives such as SECR
    • Support you during any conversations with the Environment Agency

    Reduce your energy costs at the same time as gaining compliance

    Partaking in ESOS not only ensures compliance and avoids any penalties, it also allows your business to reduce its energy costs by reducing consumption. At Professional Energy Services we’ll help you to implement these energy saving strategies from your ESOS report so you can benefit from compliance and energy efficiencies at the same time.

    Frequently Asked Questions on ESOS

    Begin your compliance journey to the latest ESOS Phase 3 requirements

    Speak to a consultant about your ESOS Compliance