top of page

ENERGY SAVINGS OPPORTUNITY SCHEME (ESOS)

The Energy Saving Opportunity Scheme (ESOS) is a mandatory government initiative designed to help large organizations identify energy efficiency opportunities. Under this scheme businesses with over 250 employees or an annual turnover of over £44 million are required to assess their energy usage and report on ways to reduce consumption. This helps organizations not only comply with legislation but also to save on energy costs and contribute to environmental sustainability. By participating in ESOS, companies can take meaningful steps towards reducing their carbon footprint.

Who needs to comply with the upcoming ESOS Phase 4

It is essential to recognize that any business classified as a large entity must comply with ESOS phase 4 . The qualifying period for this exercise is set for December 31, 2026. 

Qualifying requirements:

  • Workforce of 250 or more

  • An annual turnover in excess of £44m and an annual balance sheet of £38m.

  • An overseas company with a UK registered establishment, which has 250 or more UK employees and paying income tax in the UK.

Who is exempt from ESOS?:

  • Certain entities are exempt from this compliance exercise:​

  • Public Sector Organisation who fall under the Public Contracts Regulations 2015 or the Public Contracts Regulations (Scotland) 2015. This would include most public sector organisations, though some exceptions exist, such as certain higher education institutions.

  • Small and Medium - sized Enterprises (SMEs), that do not meet the qualification criteria - employing fewer than 250 people, and having an annual turnover not exceeding £44 million and a balance sheet total not exceeding £38 million - are generally exempt from ESOS.

  • ISO 50001 Certified Organisations covering all of their UK energy use are considered compliant with ESOS and are thus exempt from additional ESOS assessment.

ESOS Phase 4 Deadline:

The ESOS (Energy Savings Opportunity Scheme) runs every four years, and we are now approaching the qualifying period for phase 4. The deadline for compliance is set for the 5th of December 2027. It is crucial to adhere to this deadline, as failure to comply may result in fines imposed by the Environmental Agency. Ensure that your organization is prepared to meet these requirements to avoid any penalties.

How can we help?

At Energy Guardians, we provide a thorough solution for ESOS compliance with our Energy Audit services. Our skilled and experienced Lead Assessors will assist you at every step, making the process smooth and efficient. Energy audits for ESOS phase 4 can take place from January 2024. We will carry out comprehensive in-house audits and deliver customized reports to suit your requirements. Count on us to help you navigate compliance successfully.

​

Here’s a concise description on the process of the project delivery:

​

Our ESOS project delivery begins with an onboarding call to understand your business and introduce our team.

We will gather all necessary energy consumption data specific to your organization.

We identify sites and transport activities needed for an energy audit, scheduling it at a time that suits you.

We conduct a full ESOS energy audit of all applicable sites in accordance with BS EN16247 standards.

We will provide a comprehensive report on your business's energy consumption, accompanied by costed recommendations for enhancing energy efficiency.

This will be endorsed by our Lead Assessors and your organization’s Director before being submitted to the Environmental Agency for compliance.

Should you need further assistance, we are available to answer questions and support the development of action plans

Non-compliance Penalties:

  • Civil penalties can be imposed against any organisation that is not compliant with the ESOS exercise.

  • According to the ESOS regulation 43, failure to notify the EA, has a fixed penalty of up to £5,000 and an additional £500 each working day till the notification process is completed, subject to a maximum of 80 days.

  • Regulation 44 can impose a fixed fine of up to £5,000 for the failure to maintain all relevant records and documents.

  • Failure to carry out an energy audit attracts a fixed penalty of up to £50,000 and an additional £500 per working day for up to 80 days according to the ESOS regulation 45.

  • If a compliance notice is issued by the Environmental Agency (EA) and the organization fails to comply with it, a fixed penalty of £5,000 and an additional £500 per working day will be imposed as stated in the ESOS regulation 46.

  • Regulation 47 states that any misleading statement made during the ESOS exercise shall attract a penalty of £50,000 and will be subject to publications.

bottom of page