Government release update on the ESOS consultation

31st January 2022

Emily Baker

Despite the government not yet publishing the consultation response on the Energy Saving Opportunity Scheme (ESOS), an update has been released on the 22 January highlighting some key developments.

The Department for Business, Energy and Industrial Strategy (BEIS) recognise that the consultation proposed changes, including net zero audits and changes to the 5% de-minimis would come into force before the Phase 3 compliance deadline (5 December 2023). In light of this, the BEIS acknowledge the need to announce decisions as soon they are able and asked within the consultation how best to deal with organisations who have already started their audit programme.

The update also confirms an increase in the penalty for non-compliance. Failure to undertake an energy audit will result in an initial penalty of up to £50k and an additional £500 per day until the company complies with legislation. For entrants in their first year, this initial penalty will be £5k.

Previously, enforcement notices were issued with the intent to ‘bring people into compliance’, however, this has now been removed and replaced with "Undertaking an energy audit is a key requirement of ESOS. This breach impacts on the integrity of the ESOS, and we will therefore normally issue a penalty for failure to undertake an energy audit” demonstrating a clear adjustment within the approach to manage non-compliance with ESOS as we move into phase 3.

We expect the consultation response to be published within the next few months, however, to read our news story covering the consultation at the time of release click here.

FREE WEBINAR: Energy Savings Opportunity Scheme (ESOS) Phase 3 Explained

Tuesday 15 March @ 10am | Wednesday 22 June @ 2pm | Tuesday 6 September @ 10am

The Energy Savings Opportunity Scheme (ESOS) affects large UK organisations and requires them to undertake energy audits and report back to the Environment Agency. We are now in phase 3 of the scheme and we now approaching the qualification date (31 December 2022) so it is key that obligated businesses are preparing now.

The key aims of this webinar include:

  • A detailed summary of ESOS phase 3 to help businesses determine if they need to comply,
  • Information you need to prepare as we approach the qualification date in December
  • The benefits of ESOS and how Comply Direct can help you comply with the legislation before the compliance deadline.

Click here to register for your preferred date

If you wish to speak to a member of our team about the ESOS consultation or Phase 3 compliance, please do email the team on carbon@complydirect.com.