The Energy Savings and Opportunities Scheme, or ESOS, is a government directive aimed at encouraging organisations to reduce their carbon emissions and increase their energy efficiency. ESOS, unlike the yearly Streamlined Energy and Carbon Reporting (SECR) obligations, occurs in typically 4 year phases.
If your organisation has more than 250 employees or an annual turnover exceeding £44m or a balance sheet exceeding £38m then it will be required to comply with ESOS Regulations. If your organisation is part of a corporate group and any member of that group meets the minimum employee number, turnover or balance sheet criteria, then the whole corporate group will be required to undertake ESOS compliance.
Historical and future ESOS phase qualification periods and compliance dates are as shown below:
Phase |
Qualification date |
Compliance period |
Compliance date |
1 |
31 December 2014 |
From 17 July 2014 to 5 December 2015 |
5 December 2015 |
2 |
31 December 2018 |
From 6 December 2015 to 5 December 2019 |
5 December 2019 |
3 |
31 December 2022 |
From 6 December 2019 to 5 December 2023
|
5 June 2024 (extended from 5 December 2023)
|
4 |
31 December 2026 |
From 6 December 2023 to 5 December 2027
|
5 December 2027
|
Although the deadline for ESOS Phase 4 is 5th December 2027, it is never too early to get started. Site energy audits can be undertaken now.
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 per day 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 falls within the eligibility criteria any time before 31st December 2026, the Phase 4 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 your organisation falls within the ESOS criteria – your organisation may not be meet the criteria 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 (95% 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 company’s 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.
Whatever the route, we can manage the process for you taking all 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.
ESOS Phase 3 – Have you completed your energy action plan ?
If your organisation has recently completed ESOS Phase 3, you are now also required to complete an additional stage by producing and ESOS Energy Action Plan and then report progress against it on an annual basis.
The purpose of the ESOS Energy Action Plan is to assist organisations to identify what actions from their ESOS Phase 3 audit they may want to conduct on their operations before the next Phase 4 ESOS audit and commits it publicly to making energy saving and energy efficiency implementations.
What should be Reported ?
The Energy Action Plan progress update must include:
- A list of all the energy saving actions included in the action plan that the organisation has implemented over 12 months;
- A list of actions the organisation did not implement over 12 months;
- Whether the organisation achieved the actions implemented by the date it set;
- An estimate of total energy savings achieved over 12 months;
- How the organisation estimated the savings made.
The ESOS Energy Action Plan must be signed off by a Board Level Director (or equivalent) and submitted via the new MESOS IT compliance notification system.
When should ESOS Energy Action Plans be submitted ?
The formal deadline for submission of ESOS Energy Action Plans is 5th December 2024, however, due to delays with the MESOS digital service and the functionality, the Environment Agency and Regulators for the Devolved Administrations have confirmed that they will accept submitted ESOS Energy Action Plans if they are submitted to them by no later than 5th March 2025.
Following submission of the action plan, an organisation must submit an annual progress update against its Action Plan commitments in the two subsequent years.
The deadline for submitting an annual progress update is 12 months after the action plan deadline, and then 12 months after the submission deadline for the first progress update. For the third compliance period, the deadlines are 5thDecember 2025 and 5th December 2026.
An organisation may choose not to take any actions to reduce its energy consumption before the ESOS Phase 4 notification period but must still notify this intention via the MESOS Portal accordingly. It is important to note this notification will be recorded and published publicly.
What happens if ESOS Energy Action Plans are not submitted ?
The amended ESOS Regulations now includes the requirement for public disclosure of your Action Plan and Annual Action Plan progress reports.
If your organisation does not submit its ESOS Action Plan by the deadline, it will be published that your organisation does not plan to conduct any energy saving actions, which may impact both on your organisations reputation and regulatory compliance.
If you would like to discuss how we can support your organisation, please get in touch.
Speak to the experts.
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