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. Read on to discover more about ESOS and how you can turn mandatory compliance into a real cost saving opportunity for your organisation.
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 2014 for Phase 1):
- employs 250 or more people, or
- has an annual turnover in excess of €50 million (£38,937,777 phase 1*), and an annual balance sheet total in excess of €43 million (£33,486,489 phase 1*), or
- an overseas company with a UK registered establishment which has 250 or more UK employees (paying income tax in the UK)
*Exchange rate from Euros to Sterling will be confirmed on the qualification date for a given phase (for Phase 2: 31 Dec 2018). The figures quoted in sterling are estimates based on the exchange rate for phase 1 and are subject to change for Phase 2.
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? Comply Direct offer a free confidential compliance identification service.
"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.
The compliance deadline for Phase 2 of ESOS is 5 December 2019. It's not too early to start your pathway to compliance for Phase 2. With numbers of lead assessors limited, starting early will ensure availability of a quality lead assessor and ensure you can start making savings sooner. Call our team today if you would like to discuss preparations and/or ISO 15001 as a potential route to ESOS ahead of the next compliance deadline.
Your complete guide to ESOS Phase 2
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. Considering that the qualification deadline date (31 December 2018) for Phase 2 of the Energy Savings Opportunity Scheme (ESOS) is less than a year away, it is highly important that obligated companies under ESOS Phase 2 start to act now!
Click below to request your copy.
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 are likely to 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 Beiersdorf used Comply Direct for their ESOS Phase 1 compliance and achieved much more than just compliance.
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.