Consultation: Strengthening the Energy Savings Opportunity Scheme (ESOS)
The ESOS Regulations have been under consultation and the government response detailing changes for Phase 3 and Phase 4 of the scheme was released in August 2022. For more information on changes to the requirements, and how this may impact businesses for Phase 3, please see our news story here.
ESOS phase 3
We are now in Phase 3 of ESOS and have recently past the qualification deadline (31 December 2022) so it is key that obligated businesses are preparing now. As part of Phase 3 of the scheme, the financial thresholds have reduced leading to more companies being obligated!
Thresholds Timescales Route to Compliance FAQ's
Who is obligated?
A UK organisation is obligated to comply with ESOS phase 3* if on the qualification date it either:
- Employs 250 or more people, or
- Has an annual turnover in excess of £44m and an annual balance sheet total in excess of £38m, or
- Is an overseas company with a UK registered establishment which has 250 or more UK employees (paying income tax in the UK)
*Please see our FAQs page for confirmation of thresholds for previous ESOS phases (these only vary slightly from the above).
Increasingly, businesses who don’t meet the above thresholds are conducting ESOS assessments voluntarily to support their carbon reduction commitments, going above and beyond to mitigate climate change. Following the ESOS scheme presents a real opportunity for businesses to improve energy and fuel efficiency, reduce carbon emissions and subsequently, reap financial benefits.
Timescales
The scheme runs in phases of 4 years and we are now in phase 3. Each phase has a qualification date (on which a company must assess whether they are obligated) and a compliance deadline (by which date an organisation must be compliant).
Key dates for phase 3:
- Runs from 6 December 2019 until 5 December 2023
- Qualification date is 31 December 2022
- Compliance date is 5 December 2023
Obligated organisations who have missed the phase 2 deadline (5 December 2019) should act to comply as quickly as possible (organisations who met the thresholds at the phase 2 qualification date of 31 December 2018 are required to comply).
Your complete guide to ESOS
Our guide to ESOS Phase 2 & 3 provides all the key information you need to know about ESOS in one place, and defines the steps obligated companies need to take to become compliant.
Click below to request your copy.
Request your ESOS guide here!
How to comply with ESOS
There are a number of routes to compliance with ESOS, the majority of organisations comply either through the development and maintenance of a certified ISO 50001 energy management system or through the energy audit route as detailed below:
- Appoint an ESOS Lead Assessor
- Report on all energy use including electricity, gas, fleet
- Conduct an energy assessment to identify opportunities to increase efficiency
- Present findings to and achieve sign off by a director listed on Companies House
- Submit a notification of compliance to the Environment Agency
- Maintain an evidence pack
How Comply Direct can help
- Full compliance management
- Appoint an ESOS Lead Assessor
- Calculate the total energy consumption profile of the organisation
- Identify areas of significant energy consumption
- Complete ESOS compliant energy audits onsite
- Report compliance to the Environment Agency (EA)
- Compile evidence pack to evidence compliance with ESOS
- Ongoing support following compliance to implement the recommendations derived from the ESOS report
- Support with EA ESOS audits
ESOS Phase 2 - have you missed the deadline?
The compliance deadline was 5 December 2019 but Comply Direct can still help
If your organisation qualified for Phase 2 of The Energy Savings Opportunity Scheme Regulations 2014 (the ESOS Regulations) you need to act now. Maybe you have received an enforcement notice from the Environment Agency saying you must comply with the requirements of the ESOS Regulations? Take steps now to carry out an ESOS assessment with Comply Direct. We can help you comply with ESOS quickly and efficiently to minimise Environment Agency penalties.
Comply Direct made compliance with ESOS hassle-free and straight forward, providing us with real opportunities
Vivid Imaginations
ESOS case studies
Click on the links below to see how we supported Hallmark Cards PLC and Regatta Ltd become fully compliant with the ESOS legislation and turn a legislative requirement into a real opportunity to make savings. Also discover why both companies chose to continue working with Comply Direct for Phase 2 of ESOS...
