ESOS Phase 2 - have you missed the deadline?
The compliance deadline was 5 December 2019 but Comply Direct can help
If your organisation qualified for ESOS Phase 2 compliance you need to act now. Maybe you have received an enforcement notice from the Environment Agency? We can help you comply with ESOS quickly and efficiently.
As of March 2020, we are aware that the Environment Agency are already calling compliant companies for an ESOS Phase 2 audit, therefore, seeking out non-compliant companies will also be a top priority. If you think your organisation needs to comply with ESOS Phase 2, it is key that you are proactive in taking the steps to achieve compliance in order to minimise potential fines.
Update 18 May - the impact of the COVID-19 Pandemic and the social distancing measures introduced by the Government in March 2020 have made the completion of on-site audit assessments difficult, or impossible. Organisations who are still required to complete their Phase 2 ESOS commitments should carry on with this as best they can. Please see our full update on this on our Policy Blog.
Read below to discover more about ESOS and how you can turn mandatory compliance into a real cost-saving opportunity for your organisation.
What is ESOS Compliance?
ESOS compliance (The Energy Savings Opportunity Scheme) is the UK’s interpretation of Article 8 of the EU Energy Efficiency Directive and is administered by the Environment Agency. The UK wide scheme has been developed to realise the significant opportunities for energy and cost savings for UK businesses; compliance is mandatory for all obligated large undertakings and their corporate groups. The energy savings realised will subsequently help the UK in meeting its challenging energy efficiency targets by 2020 as set at EU level.
The scheme runs in Phases of 4 years and we are now in Phase 3. Obligated companies were required to notify the Environment Agency of compliance with the first Phase in 2015 and the second Phase in 2019 with the qualification date
For ESOS (Phase 3) the qualification date is 31st December 2022. The four year compliance phase runs from 6th December 2019 until 5th December 2023. The compliance date for phase 3 is 5th December 2023.
PODCAST: ESOS Phase 2
During this podcast we discuss what ESOS is, which businesses are affected by the legislation, how obligated companies can become compliant, the benefits of ESOS and how Comply Direct can help. Have a listen now as the deadline for achieving compliance passed on 5 December 2019.
Am I obligated?
ESOS is applicable to large undertakings in the UK and their corporate groups. Your organisation must comply with the scheme as soon as possible if, your business (on the 31 December 2018 for Phase 2):
- 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)
NB: “balance sheet total” means the aggregate of the amounts shown as assets in the company’s balance sheet (that is before deducting both current and long-term liabilities). Therefore it is the gross figure not the net figure.
Have you received an enforcement notice from the Environment Agency for Phase 1 or Phase 2? Comply Direct offer a free confidential compliance identification service. The Environment Agency found around 500 organisations that qualified for ESOS in Phase 1 but were not compliant. The Environment Agency are proactive in issuing civil penalties against non-compliant organisations with the ESOS regulations, so it is key that obligated companies act as soon as possible to minimise potential fines.
The qualification date for Phase 2 was 31 December 2018; if you met the criteria aforementioned on this date, your organisation is obligated for this Phase. The compliance deadline for Phase 2 was 5 December 2019, so if your organisation qualifies for ESOS Phase 2 you need to act now. We are aware some companies are starting to receive enforcement notices from the Environment Agency. We can help you become compliant with ESOS quickly and efficiently. Don't delay call our expert ESOS team today if you would like to discuss steps toward achieving compliance.
Your complete guide to ESOS
Our guide to ESOS Phase 2 provides all the key information you need to know about ESOS Phase 2 in one place, and defines the steps obligated companies need to take to become compliant.
Click below to request your copy.
"Oncore would not hesitate to recommend Comply Direct as extremely effective and good value for anyone that is considering how best to manage ESOS compliance in the future"
Find out all the details HERE on how Comply Direct made Oncore's journey from being unaware of ESOS to being compliant under Phase 1, smooth, quick and effective
Updates from the regulator
Phase 1 saw 6,800 organisations submitting a notification of compliance. The EA has served over 300 enforcement notices and has begun Civil Penalty proceedings against a number of organisations who are non-compliant. Penalties for non-compliance can exceed £50,000. If you have received an enforcement notice, contact us to learn more about our free confidential compliance identification service. 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.
A proven track record
Comply Direct has helped companies in a range of sectors achieve compliance with ESOS and successfully supported companies through the audit process. If you aren't sure whether you should have complied with Phase 1 or exceed the thresholds for Phase 2, then give our expert team a call to discuss the best route to achieving compliance. Beyond compliance, ESOS can offer cost savings to companies. Vivid Imaginations, Hallmark and Regatta, among many other companies, used Comply Direct for both their ESOS Phase 1 and Phase 2 compliance and achieved much more than just compliance.
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...
Comply Direct made compliance with ESOS hassle-free and straight forward, providing us with real opportunities
Your route to compliance with Comply Direct
Comply Direct provides a hassle-free solution ensuring your compliance with ESOS
We work closely with a network of ESOS lead assessors, utilising their expertise across all sectors. 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, totalling 33gWh of potential energy saved, equal to approximately £3 million per annum for all ESOS projects we have completed to date.
- Calculate the total energy consumption profile of the organisation
- Identify areas of significant energy consumption
- Appoint a lead assessor to oversee the ESOS assessment
- Complete ESOS compliant energy audits onsite
- 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
ESOS compliant energy audits as per requirement of the legislation must also meet a certain criteria. They must:
- Be based on 12 month’s verifiable data on or overlapping the qualification date for a given phase
- Analyse the participant’s energy consumption and current energy efficiency for all significant fuels and processes
- Identify a range of energy saving opportunities
- Include site visits (not necessarily all sites)
Penalties for non-compliance
Failure to comply with ESOS could result in fines up to £50,000 and / or an additional fine of £500 per day until compliance is complete for a maximum of 80 days. Non-complying companies will also be publicly named by the Environment Agency.
Don't get caught out, act now to avoid maximum fines
If you think you may need to ensure compliance with ESOS or would like any further information, please do not hesitate to get in touch with our energy experts.