Everything you need to know about Energy Savings Opportunity (ESOS)

What is Energy Savings Opportunity Scheme (ESOS)?

ESOS is a mandatory energy assessment scheme for large organisations in the UK to assess energy use and energy efficiency opportunities. This has to be done at least once every four years. The assessment must cover the energy usage of buildings, processes, and transportation of organisations.

ESOS runs in four-year compliance phases and is currently in phase 3. The deadline for Phase 3 audit reports is 5th December 2023.

Who does it affect?

You need to conduct ESOS if your business;

• employs 250 members of staff or more;
• have an annual turnover exceeding £44.1m and a balance sheet exceeding £37.9m.

Why should your business begin it as soon as possible?

The Environment Agency may issue civil sanctions, including financial penalties, if an organisation does not meet the scheme's obligations. For example, if your businesses fail to undertake an energy audit, the initial penalty can be up to £50,000, and a daily penalty can be up to £500 for each working day of non-compliance. Read details here: https://www.gov.uk/government/publications/environment-agency-enforcement-and-sanctions-policy/annex-2-climate-change-schemes-the-environment-agencys-approach-to-applying-civil-penalties

Early actions not only allow your businesses to confidently adhere to ESOS obligations but also can help to identify energy and cost-saving opportunities. Energy costs have soared to unprecedented levels in the UK, putting pressure on many businesses, and prices are likely to increase significantly further. 

What does it mean in practice?

ESOS assessment involves three steps;

• Measure your energy consumption covering the energy usage of buildings, processes, and transportation
• Conduct energy audits to identify cost-effective energy efficiency improvement opportunities
• Report compliance to the Environment Agency involving steps of appointing a lead assessor to review your report and notifying the Environmental Agency.

We are highly experienced in energy and carbon consultancy, offering comprehensive and cost-effective ESOS compliance help. We can help you with:

• Implementing energy assessments
• Reducing energy use
• Saving costs
• Cutting emissions
• Ensuring compliance to regulations

Feel free to contact duligong@tomsonconsulting.co.uk to get more information