The Energy Savings and Opportunities Scheme, or ESOS, is a government directive aimed at encouraging businesses to reduce their carbon emissions and increase their energy efficiency. ESOS, unlike the yearly Streamlined Energy and Carbon Reporting (SECR) obligations, occurs in phases.
The various phase qualification and compliance dates are as follows:
Please note the phase three deadline has been extended from 5 December 2023 to 5 June 2024.
|Four-year compliance phase
|31st December 2014
|6th December 2011 – 5th December 2015
|5th December 2015
|31st December 2018
|6th December 2015 – 5th December 2019
|5th December 2019
|31st December 2022
|6th December 2019 – 5th December 2023
|5th June 2024 (Previously 5th December 2023)
|31st December 2026
|6th December 2023 – 5th December 2027
|5th December 2027
To be eligible for Phase 3 of ESOS, your business must have more than 250 employees or an annual turnover exceeding £44m and a balance sheet exceeding £38m. If you’re part of a corporate group, any member of that group who is eligible means the entire group is eligible.
Not sure if you qualify? Contact us to determine your status
Failure to comply with ESOS can lead to fines of up to £50,000 and then £800, up to a maximum of 80 days, until you are compliant, making it vital that you undertake an ESOS audit if you anticipate that your company will fall within the eligibility criteria any time before 31st December 2023, the Phase 3 Qualification Date.
How can we help?
We provide two cost-effective solutions to achieve ESOS compliance.
ESOS Audits can be undertaken as a separate activity by compiling your information and submitting your reports. This information will need to be compiled and assessed prior to the compliance date and follows the following typical stages;
- Identify if you’re eligible – you may not be eligible at the moment, but if your business grows to meet the criteria in accordance with the qualification dates outlined above, you must comply or risk fines.
- Identify your total energy consumption, then your significant energy consumption (90% of your total energy consumption).
- Audit your significant energy consumption to identify savings opportunities.
- Have the audit reviewed by our fully qualified lead assessors and signed off by your companies Directors.
- Notify the environment agency of ESOS completion.
These steps can vary in complexity depending on the size, scope and general organisation of your business.
ISO 50001 encourages a framework for your utility consumptions to be recorded, thus making the reporting under ESOS a much simpler and hassle-free process.
It also allows your organisation to manage its utility consumptions in the most cost-effective manner, reducing waste and in turn providing financial and environmental benefits.
This route is audited by an external UKAS accredited certifying body and provides you with the ISO50001 Energy Management Certification.
You are still required to submit your reports under ESOS and you will find the process much simplified.
The Department of Energy Security and Net Zero have proposed changes to ESOS which are expected to apply during Phase 3 of the scheme, although any changes are currently subject to final Parliamentary Approval. We will provide further updates once more details are released.
Whatever the route, we can manage the process for you taking all of the effort and worry away from your business, leaving you to focus on what you do best while we use our expertise to ensure your ESOS obligations are followed.
If you would like to discuss how we can support your organisation, please get in touch.