The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment and energy saving identification scheme for large undertakings (and their corporate groups). The scheme applies throughout the UK and is likely to impact over 10,000 businesses.
The government’s Department for Energy Security and Net Zero (DESNZ) has announced that the deadline for compliance with the current Phase of ESOS (Energy Savings Opportunity Scheme) has now been extended to 5th June 2024, rather than 5th December 2023 as originally planned. Companies will therefore have until that date to get their site assessments carried out and their reports filed.
All other aspects of the scheme remain unchanged.
The Consultus International Group offer support, at every step, with site audits, data collection and reporting. We also handle submissions to the environmental agency and resolve accompanying queries.
Who qualifies for ESOS?
Your business will be affected, if on 31st December 2022 you met either one or all of the conditions below:
- You employ 250 people or more, OR
- You have an annual turnover greater than £44m and a balance sheet exceeding £38m
- You are part of a corporate group which includes a UK-based large undertaking
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
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.