Energy Savings Opportunity Scheme (ESOS)
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ESOS Explained
Am I affected by ESOS?
Organisations in the UK must assess whether they are required to participate in ESOS on the qualification date of each phase. Organisations or the Organisational Group (Companies / Enterprises), and the qualification criteria below, are assessed as the organisation was on 31st December 2022 for ESOS Phase 3 and comply by the extended date on 5th June 2024.
- An Undertaking / organisations which has 250 or more employees in the UK. Part time employees
count as one employee. - An Undertaking /Organisations which has fewer than 250 employees, but has:
- An Annual turnover exceeding £44m
- and an annual balance sheet exceeding £38m
- Part of a corporate group, which includes an undertaking that meets criteria 1 or 2 above.
Exchange rates to Sterling (£) will be confirmed on the qualification date for each given
phase (for Phase 3 this is on the 31st December 2022).
Have you prepared your ‘ESOS Action Plan’ and ‘ESOS Progress Report’ for Phase 3
Under Phase 3 and going forward, Organisations are required to submit an ESOS Progress Report annually, providing updates on their progress in implementing the energy-saving actions outlined in their Action Plan. Below are the submission dates.
Table showing the ESOS Action Plan Timelines tabled below:
| Submission Phase | ESOS Phase Compliance and Action Plan Results | New Action Plan | Action Plan Annual Progress Update | Action Plan Annual Progress Update |
|---|---|---|---|---|
| Phase 3 Action Plan | First annual ‘ESOS Progress Report’. | 05-Dec-25 | 05-Dec-26 | |
| Phase 4 Action Plan | 05-Dec-27 | ‘ESOS Progress Report’ due 5 December 2028 | 05-Dec-29 | 05-Dec-30 |
Should you require any assistance with your ESOS Action Plans please do contact us.
What must you do for the next ESOS Phase 4?
Appoint an Accredited Lead ESOS Assessor who is accredited to compile and assess your compliance. You are required to have measured your total energy and fuel consumption across a 12-month reference period, which must include the qualification day. You can measure your total energy consumption in either energy units (i.e. kWh) or energy expenditure (i.e. £). Once you have measured your total energy consumption.
The energy datasets you use as the basis for ESOS Phase 4 reporting will need to be based on a 12-month period that includes the qualification date (31 December 2026) and ends before the compliance date (5 December 2027). This is known as your ‘Reference Period’.
The Compliance Period is from 06 December 2023 to 05th December 2027, for which you can capture your 12-month energy datasets within…
- Calculate the total energy and fuel consumption within each organisation/s or across the Group
- Identify areas of significant energy consumption
- Appoint a Lead ESOS Assessor to oversee the ESOS assessment
- Complete ESOS-compliant energy audits on-site
- Report compliance to the Environment Agency following review by a board-level Director
- Keep appropriate records to evidence compliance with ESOS
- Ongoing support following compliance to implement the recommendations derived from the ESOS report
was
| ESOS Phases | Qualification Date | Compliance Period | Compliance Date |
|---|---|---|---|
| Phase 1 – Completed | 31 December 2014 | From 17 July 2014 to 5 December 2015 | 5 December 2015 |
| Phase 2 – Completed | 31 December 2018 | From 6 December 2015 to 5 December 2019 | 5 December 2019 |
| Phase 3 (Current period) | 31 December 2022 | From 6 December 2019 to 5 December 2023 | Was 5 December 2023 extended to 5 June 2024 |
| Phase 4 (Next Period) | 31 December 2026 | From 6 December 2023 to 5 December 2027 | 5 December 2027 |
What if we do not comply to ESOS?
Failure to correctly comply with the scheme leads to fines of up to £50,000 and additional fine of £500 per day for a maximum of 80 days or until compliance has been demonstrated. Non-complying companies will also be named and shamed on the Environmental Agency website.
List of incurring failures and fines for not complying with ESOS:-
- Failure to declare compliance on time – £5,000 plus £500 per working day up to 80 days
- Publication penalty on the Environmental Agency website Link
The Environment Agency published Comply with ESOS; its latest guide on fines
Failure to undertake an energy audit is:
- a fixed penalty of up to £50,000 plus £500 per day for each day of non-compliance, up to a maximum of 80 days
- total fines could therefore amount to £90,000, and then the Environment Agency may take additional action and
- the Environment Agency have disclosed that they will display the details of non-compliant companies and the fines on their website.
Failure to maintain records
Link to Civil penalties for ESOS
- a fixed penalty of up to £5,000
- the cost to the compliance body for undertaking sufficient auditing activity to confirm that an organisation has complied with ESOS publication
- the penalty notice may specify steps to remedy the breach
Failure to notify the scheme administrator of compliance by the required date is as follows:
- a fixed penalty of up to £5,000
- an additional £500 for each day starting on the day after the date of compliance until the notification is completed, subject to a maximum of 80 days and/or
- publication of details of non-compliance by the compliance bodies.
False or misleading statement
- a fixed penalty of up to £50,000
- publication on the website
If you’re subject to the publication penalty, the regulator will publish details on their webpages of:
- the person on whom the penalty was imposed
- the legal requirement that was not complied with
- the amount of any financial penalty imposed
The Environmental Agency (EA) issued over 2,750 compliance notices, 2,133 enforcement notices , and 123 civil penalties in Phase 2.
Where can I find help?
If you think you may qualify for the ESOS scheme or you are not sure, please contact us to discuss ESOS compliance in more detail. We can help you identify if you need to comply, and help you take steps to ensure compliance where required. If you are obligated and yet to comply, the more proactive you are the better. At LCEA Ltd we provide solutions on how the ESOS scheme works and how we can help you meet the requirements of the scheme, reduce energy consumption and save you money.
Free Confidential ESOS Compliance Identification Service
Our FREE Compliance Identification Service offers a number of benefits:
- FREE tailored support
- FREE compliance review
- Simple, hassle-free and rapid way to see if you are obligated
- Expert knowledge – our team have a wealth of compliance knowledge and industry experience
- Full civil sanctions support if required
- No obligation and completely confidential
Reasons to use LCEA Ltd as your ESOS Lead Assessor
Our assessors have a wealth of experience and we have worked with customers in a range of industries including manufacturing and distribution, road freight and aviation. Our completed ESOS compliant reports have informed our clients of significant energy saving opportunities.
- ESOS Lead Assessors (we have in-house Lead ESOS Assessors who can act in this mandatory role for you).
- ESOS Compliance Routes (we have offerings covering Display Energy Certificates, Bespoke Energy Audits and ISO50001).
- We took significant sized Clients through the previous compliance for ESOS Phase 1, 2 & 3, with a compliance rate of 100%
- We identified significant energy, fuel recommendations and savings
- LCEA Ltd provides a hassle-free solution ensuring your compliance with ESOS
Every moment spent on ESOS compliance is a distraction from your core business activities.
At LCEA Ltd we are knowledgeable and experienced consultants and we can take you on a journey with ESOS beyond simple compliance, maximising cost savings and adding value to the process, making your business more competitive. We are accredited and approved ESOS Lead Assessors.
With numbers of lead ESOS assessors limited, starting early will ensure availability of a quality lead ESOS assessor and ensure you can start making savings sooner and ensure that you comply with ESOS.
Call our team today if you would like to discuss a potential route to ESOS ahead of the next compliance deadline.
It’s not too early to start your pathway to compliance for ESOS Phase 3 and getting you ready for ESOS Phase 4.
Access all the ESOS newsletters, Guides and ESOS Publications located here Link
Every moment spent on ESOS compliance is a distraction from your core business activities.
At LCEA Ltd we are knowledgeable and experienced consultants and we can take you on a journey with ESOS beyond simple compliance, maximising cost savings and adding value to the process, making your business more competitive. We are accredited and approved ESOS Lead Assessors.
With numbers of lead ESOS assessors limited, starting early will ensure availability of a quality lead ESOS assessor and ensure you can start making savings sooner and ensure that you comply with ESOS.
Call our team today if you would like to discuss a potential route to ESOS ahead of the next compliance deadline.
It’s not too early to start your pathway to compliance for ESOS Phase 3 and getting you ready for ESOS Phase 4.
If you require any additional information, please do contact our Surveying Department for more assistance on +44 (0)203 504 0135
