Energy Savings Opportunity Scheme (ESOS)

A mandated government programme called the Energy Savings Opportunity Scheme (ESOS) aims to identify areas where major businesses might save money by using less energy and emitting fewer greenhouse gases.

What is the ESOS?

ESOS is a legislation that applies to all major businesses operating in the UK and is based on Article 8 of the EU Energy Efficiency Directive. The ESOS Regulations 2014, which are implemented by the Environment Agency (EA), contain the regulations governing the scheme.

Every four years, a responsible undertaking is required to complete a statutory ESOS assessment, which includes an energy audit. In order to find potential for energy savings, the audit evaluates the energy utilised by a company’s buildings, industrial processes, and transportation.

The qualification deadline of 31 December 2022 is quickly approaching. This is the date on which you determine whether your business is obliged to carry out an ESOS report.

If your business is eligible, then you must conduct an ESOS assessment for the compliance period of 6 December 2019 to 5 December 2023. This is the date range that you should be reporting on for your audit.

The findings need to be reported to the EA by 5 December 2023.

Who qualifies for the ESOS?

ESOS is applicable to large businesses in the UK and overseas that meet the criteria on 31 December 2022.

This criterion is defined as:

or

If your business meets either of these criteria, you will need to complete an ESOS assessment.

If at least one UK group business satisfies these requirements, entire corporate groups may also qualify.

A business probably needs to engage in this latest phase if they participated in the first two ESOS phases.

How to comply with the ESOS…

A business does not need to do an ESOS assessment if they are fully covered by ISO 50001. Instead, all that is required is for the business to inform the Environment Agency that they have ESOS compliance.

A business must conduct an ESOS assessment if it meets the requirements for ESOS but is not entirely covered by ISO 50001. You can determine what has to be done to comply with the ESOS regulations with the use of the assessment.

A responsible undertaking must take various steps for the assessment, including:

What happens if I don’t comply?

You should have either registered your compliance or informed the EA of your non-compliance by 5 December 2023. If you do not comply by this date, you may be liable to pay a fixed penalty (up to £5,000) and/or an additional penalty for each day of non-compliance (£500/day up to 80 days = £40,000), AND you will still have to take steps to comply with ESOS.

We work with JRP Solutions, a specialist energy consultancy service that is helping businesses across the country with their ESOS assessments.

If you’re unsure whether you meet criteria or need assistance in collating your data for the assessment, email [email protected], call 0115 958 6872 or fill in an enquiry form below.