Energy Savings Opportunity Scheme (ESOS)

The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment scheme for organisations in the UK that meet the qualification criteria. ESOS allows organisations to identify areas to cut costs and increase energy efficiency.

ESOS Phase Two has now been confirmed. For qualifying organisations, our ESOS Lead Assessors are available to support you at every step of the way to ESOS compliance.

What you need to know about ESOS

ESOS Phase Two is now in full swing, after receiving the official go ahead from the UK’s environment agencies (Environment Agency, Scottish Environment Protection Agency, Northern Ireland Environment Agency and Natural Resources Wales).

ESOS is a four-yearly mandatory energy assessment that applies to UK organisations that meet the qualification criteria. The first phase ran from 6th December 2011 – 5th December 2015. The second phase runs from 6th December 2015 – 5th December 2019, the qualification date being on the 31st December 2018.
How do I know if i need to comply with the ESOS legislation?
All organisations in the UK that are considered large undertakings come under the scope of ESOS. Unsure if your organisation qualifies? The following will help you establish whether, for the purposes of ESOS, your organisation is considered a large undertaking.
  • If  you employ 250 or more employees, you are required to comply with the ESOS scheme
  • If your turnover is more than £50 million and your total asset value on your company’s balance sheet worth more than £43 million, you are required to comply with the ESOS scheme
  • If you are part of a corporate group that includes an organisation, which meets criteria one or two? you are required to comply with the ESOS scheme

What are the routes to ESOS compliance?

There are a number of possible routes to demonstrate that energy savings assessments are being undertaken within your organisation. Your ESOS Lead Assessor will consider other audits undertaken within the compliance period where they meet the minimum requirements of an ESOS Audit. There are currently four compliance routes available:

  1. ESOS Audit
  2. ISO 50001 Certification
  3. Display Energy Certificates
  4. Green Deal Assessments

Penalties for ESOS Non-Compliance

The Environment Agency are authorised to publicly highlight and apply significant penalties against companies who fail to comply, following qualification for the scheme.

Before a penalty notice is served, compliance notices and enforcement notices are sent in order to encourage participants of the scheme to meet their obligations.

Non-compliance could result in a fixed penalty of up to £135,000 for failing to undertake the ESOS Audit. An ESOS Lead Assessor will be able to advise you exactly what needs to be done by whom and when in order to ensure compliance.