The government’s Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment for larger organisations in the UK that meet the qualification criteria. The scheme ensures that organisations conduct energy audits across key buildings and operations every four years to identify ways to become more energy efficient.
The final compliance deadline for ESOS Phase 3 is 5th December 2023 but getting up to speed with ESOS criteria and starting your assessment in advance is highly recommended.
ESOS is mandatory for all UK organisations that meet at least one of the following :
If your organisation is part of a group where any of the companies meet the above criteria, all organisations in the group must comply with ESOS.
To comply with ESOS, energy audits must be conducted every four years which are approved by a Lead Energy Assessor. The audit assesses the organisation’s energy intensity ratio and the variation in energy use over time within key buildings and operations. To achieve compliance, a business needs to gather the necessary data, undertake the assessment, and maintain records of the results. The most important part of an ESOS assessment is the energy-saving strategy and recommendations.
To achieve compliance, you must:
It is necessary to appoint a Lead Assessor to supervise and/or conduct your energy audits and overall ESOS assessment. This can be an employee of your organisation or someone from an external company, as long as they are a member of an approved professional body register.
Lead assessors can support your organisation’s ESOS assessment in several ways, including:
It is beneficial for your organisation’s Lead Assessor to be involved in the entire ESOS assessment to fully utilise their expertise and knowledge.
The ESOS assessment includes conducting an energy audit which is then documented in a report with energy-saving recommendations.
An energy audit examines how energy is used in an organisation. Carrying out an energy audit will help you understand and improve the energy performance of the organisation. This includes:
The final report should include a calculation of the overall energy usage broken down into sections such as energy used in buildings, transport, and industrial processes. The Lead Assessor is then responsible for devising a strategy to decrease and manage energy usage in accordance with the data provided.
Once you have completed the ESOS assessment, you must have your assessment signed off by board-level directors and your Lead Assessor, create an ESOS evidence pack, and submit your assessment to the Environment Agency.
Assessment Sign-Off:
If your Lead Assessor is an employee of your organisation, your ESOS assessment must be signed off by two board-level directors.
If your Lead Assessor is hired from an external organisation, your ESOS assessment needs only to be signed off by one board-level director.
ESOS Evidence Pack:
An evidence pack is created to prove that you have complied with ESOS regulations and that you have followed the correct procedure. It is also a beneficial outlet to store all ESOS-related information and material for your organisation and Lead Assessor to refer to.
Your evidence pack must include information relating to technical data and compliance, as well as administrative details and documentation of sign-offs and written agreements.
You can view the full list of information required in the ESOS Evidence pack on the government website.
Submit to Environment Agency:
Once your assessment and evidence pack are in order, you can submit your notification of compliance to the Environment Agency free of charge via an online portal. You can begin your notification at any stage in your ESOS journey, save your progress, and return to it later.
When submitting your notification of compliance, you will be asked for details about participants in the ESOS assessment process, your Lead Assessor, and which proportion of your total energy consumption is covered by each compliance route.
An energy audit is not the only way to comply with the scheme. There are several alternative routes to compliance such as:
Those with an Energy Management System (EMS) certified by 1SO 50001 that includes energy-intensity ratio data will be considered ESOS compliant and not required to implement specific ESOS audits. The ISO50001:2011 standard was superseded in 2018 by ISO 50001:2018; the government will accept certification under either the 2011 or 2018 versions of the standard.
Organisations that are eligible for ESOS compliance have the option of using an ISO 50001 Energy Management System to cover all their significant energy expenses, without needing to hire a Lead Assessor. It is possible to use a single approach or a combination of methods if all significant energy consumption areas are taken care of.
DECs and Green Deal Assessments cover only energy used in buildings and require review by an ESOS Lead Assessor.
All organisations that qualify for ESOS that do not submit a notice of completion by the set deadline will risk civil penalties and fines. These penalties range from £5,000 to £50,000, with an additional £500 fine for each day the compliance note has not been submitted (subject to a maximum of 80 days).
Compliance bodies are allowed to disclose information pertaining to any failure to comply with regulations, including the name of the relevant organisation, specifics of the breach, and the penalty they have been issued.
Our team of experts is on-hand to guide you through the ESOS Phase 3 process, led by our own ESOS Lead Assessor Emma Littlewood. Our short guide to Phase 3 will help you to understand key dates and timelines for 2023 compliance and prepare you for the 5th of December deadline.