ESOS

Energy Savings Opportunity Scheme

ESOS (Energy Savings Opportunity Scheme) is a mandatory energy assessment scheme for businesses and organisations, in the UK, that meet the qualifying criteria. Phase 4 lies ahead for those who continue with the scheme, with Consultus possessing a 100% record of successfully completing ESOS reports, on a client’s behalf.

Consultus can combine ESOS reporting with setting a detailed action plan, which includes data collection, site surveys and bespoke insights, from a leading Net Zero delivery partner. Dedicated ESOS auditors will provide an ongoing service and measure progress regularly, along with handling all submissions to the Environmental Agency (EA). The ESOS action plan will outline a four-year compliance phase, with annual reports filed every 12 months, to confirm whether targets have been met.

Benefits of ESOS

Identify cost effective energy savings
Reduce carbon emissions
Enhance profitability and competitiveness

Further to a recent consultation conducted by BEIS on ‘Strengthening the Energy Savings Opportunity Scheme’, please see below proposed changes to the scheme:

a standardised template for including compliance information in the ESOS report, generally comprising ESOS information the participant should already have available
the reduction of the 10% de minimis exemption to up to 5%
the addition of an energy intensity metric in ESOS reports
requirement to share ESOS reports with subsidiaries
requirement for ESOS reports to provide more information on next steps for implementing recommendations
requirement for participants to set a target or action plan following the Phase 3 compliance deadline, on which they will be required to report against for Phase 4
collection of additional data for compliance monitoring and enforcement

The document also sets out a summary of feedback received on 2 further options, which will inform developments in future phases:

extending the scope of the scheme to include medium-sized businesses, not already part of a corporate group containing a large business
mandating action on audit recommendations

Who qualifies for ESOS?

To qualify for ESOS Phase 4, companies must meet the following criteria:

Be registered or based in the UK or a UK establishment.
Have at least 250 employees (who work in the UK).
Have an annual turnover of more than £44million.
Have an annual balance sheet of over £38million.

Corporate groups that contain, at least, one large undertaking and not-for-profit organisations that meet the large undertaking criteria may also qualify.

Take Action

Failure to notify the Environment Agency can lead to an initial penalty of up to £5,000 and a daily fine of up to £500 for each working day of non-compliance. Along with this, making a false or misleading statement could lead to fees of up to £50,000.

Also, The Environment Agency have stated that businesses will not be allowed to replicate the same historical ESOS energy audits for ESOS phase 3. You will need to be able to demonstrate advancing energy audits and that you are looking at different ways of doing things, so even if you’ve completed previous energy audits and want to use those, they won’t be accepted.

Be mindful that an ESOS assessment is a six-stage journey and doesn’t just involve measuring energy use but also being able to pinpoint major areas of energy use and creating an ESOS Compliance plan.

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ESOS

Benefits of ESOS

Who qualifies for ESOS?

Take Action

Start your journey to a greener future

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