FAQ: Energy Savings Opportunity Scheme (ESOS)
The Energy Savings Opportunity Scheme affects large UK businesses; did your company miss the Phase 2 ESOS deadline? It’s not too late to comply to avoid fines of up to £90,000.
If you haven’t appointed a Lead Assessor to undertake your energy audit, check out our easy to understand FAQ about ESOS.
If you don’t find what you’re looking for, call us on 0207 371 5360 – we can guide you through every step, quickly, easily and cost-effectively.
What does ESOS mean?
ESOS stands for Energy Savings Opportunity Scheme.
What is ESOS?
The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment scheme for large organisations based in the UK.
It requires organisations that meet the qualification criteria to audit and report on at least 90% of their energy usage to The Environment Agency every four years. ESOS has four phases and deadlines for submission.
When was ESOS introduced?
The Energy Savings Opportunity Scheme (ESOS) was introduced on 17 July 2014 by the UK government’s Department of Energy and Climate Change (DECC).
What is the purpose of ESOS?
It is designed to give organisations the opportunity to conduct an in-depth review of their energy use to identify ways to improve energy efficiency. This allows businesses to reduce their usage and costs whilst helping to tackle climate change and lead the UK towards a higher level of energy security.
The scheme is estimated to lead to £1.6 billion net benefits to the UK (ESOS Impact Assessment DECC0142, 24 November 2014), with the majority of these being directly felt by businesses as a result of energy savings.
Is ESOS a carbon tax?
ESOS is not a direct tax on CO2 emissions, which is sometimes referred to as a carbon tax.
Who needs to comply with ESOS?
You must take part in ESOS if your organisation, or any UK undertakings in your group, qualifies as a large undertaking on the qualification date.
The ESOS definition of a ‘large undertaking’ is, if:
> You have over 250 members of staff, or
> A turnover of over £44.1m, or
> An annual balance sheet of over 43 million Euros (£37.9m), or
> You are an overseas organisation with over 250 employees in the UK, or
> Your company is part of a larger organisation, which falls into any of the above.
What do you have to do to comply with ESOS?
To comply with the ESOS regulations, a Lead Assessor will need to undertake an ESOS assessment to:
> Measure your total energy consumption for your buildings, industrial processes and transport
> Identify areas of significant energy consumption, for at least 90% of your total energy usage
> Identify the areas in your business where significant energy is used and look for opportunities for savings.
What is an ESOS Lead Assessor?
A lead assessor will carry out and oversee or review your energy audits and overall ESOS assessment. Lead assessors can be employees or external contractors as long as they are members of an approved professional body register.
How to demonstrate ESOS compliance?
You can demonstrate that you’ve made a compliant ESOS assessment using:
> ISO 50001 certification
> Display Energy Certificates (DECs)
> Green Deal Assessments (GDAs)
> ESOS compliant energy audits
How often do you have to report on ESOS?
Every four years. We are now in Phase 3 of these four-year cycles.
Who regulates ESOS?
The UK regulators for ESOS are:
England: Environment Agency
Wales: Natural Resources Wales
Northern Ireland: Northern Ireland Environment Agency
Scotland: Scottish Environment Protection Agency
Wholly or mainly of offshore activities: Secretary of State for Business, Energy and Industrial Strategy
When was the deadline for ESOS Phase 1?
The deadline for the first ESOS compliance period was 5 December 2015.
When was the deadline for ESOS Phase 2?
The deadline for the second ESOS compliance period was 5 December 2019. Your organisation qualified for this if, on 31 December 2018, it met the ESOS definition of a large undertaking.
What to do if you’ve missed the ESOS Phase 2 deadline?
The regulators will issue compliance notices to all business in the UK, which may be required to report on ESOS but haven’t submitted records.
If you’ve received a letter about ESOS or a compliance notice and don’t know what to do, let us help your organisation achieve compliance as soon as possible. Call 0207 371 5360 .
Getting your paperwork sorted now for Phase 2 will help you get ready for the ESOS Phase 3 deadline preparations.
When is the next ESOS deadline?
Phase 3 is the next ESOS deadline on 5 December 2023. If your organisation qualifies for ESOS on 31 December 2022 you must comply with ESOS Phase 3.
We can help you plan for your Phase 3 submission, call on of our ESOS Experts on 0207 371 5360.
When is the deadline for ESOS Phase 4?
The ESOS Phase 4 deadline is 5 December 2027.
What are the penalties of not complying with ESOS?
The consequence of ESOS non-compliance involves fines of between £5,000 and £90,000 and potential public declaration on the regulator’s website – otherwise known as naming and shaming!
What help is available for ESOS?
If you have any questions about ESOS, speak to one of our Energy Experts today on 0207 371 5360 to find out how we can help you achieve full legislative compliance.
Our expert consultants will keep you updated on the latest changes in legislation; help you with advice, processing and submission of utilities documentation to ensure you meet evolving compliance criteria and submission deadlines.