The UK government’s Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment for large UK organisations that meet specific qualification criteria. If your organisation qualifies, you must comply with the ESOS regulations, including energy audits, submitting Action Plans, and meeting key deadlines.
Green Element is on hand to guide you through ESOS Phase 3 compliance, ensuring your organisation maximises energy efficiency and avoids penalties. Here is the most up to date information on ESOS Phase 3, including recent deadline extensions announced by the Environment Agency (EA).
Your organisation must comply with ESOS if it meets either of these criteria:
If your organisation is part of a group where one or more entities meet these criteria, the entire group must comply with ESOS.
Find out if you need to comply and get a quick quote for the ESOS Phase 3 assessment
The table below provides a clear overview of the critical deadlines for your Phase 3 ESOS assessment. Each deadline is essential for ensuring your organisation remains compliant. Further in this blog, we’ll explain the significance of these deadlines and outline the steps your organisation needs to take to meet them.
The original deadline for ESOS Phase 3 compliance remains December 5th, 2024. However, the Environment Agency has extended the deadline for submitting Action Plans to March 2025, due to delays in the development of the MESOS reporting system.
While the extension offers additional flexibility, organisations are encouraged to aim for the original deadline where possible.
Changes introduced to Phase 3 in 2024 now require organisations to submit an Action Plan detailing how they will implement energy-saving recommendations. The plan should outline:
Organisations that do not plan to implement energy-saving measures can submit a notification indicating that no action will be taken. Additionally, after submitting an Action Plan, organisations must provide annual progress updates for the next two years, detailing energy-saving actions and estimated savings.
The Environmental Agency originally launched a new IT system (MESOS) in March 2024 to streamline ESOS compliance for all participants. However, the platform, which is essential for submitting Action Plans, has been delayed.
As a result, the EA has confirmed that MESOS will now be fully operational by November 1st, 2024. On this date, the EA will also provide additional guidance and a template to assist organisations in preparing their submissions.
To prioritise resources for developing effective action plans in MESOS, the Department for Energy Security and Net Zero (DESNZ) has decided not to allow ESOS participants to add restricted users (external lead assessors) to their MESOS accounts for creating action plans.
Instead of the restricted user functionality, templates will be provided, along with additional guidance. This will allow ESOS participants to collaborate with lead assessors offline to prepare the necessary information. Once completed, the templates should be returned to the ESOS participant for submission.
One of the major updates in ESOS Phase 3 is the introduction of Annual Progress Reports, designed to ensure that organisations actively follow through on energy-saving measures recommended during their assessments.
After submitting your Action Plan, organisations must provide progress updates for the following two years These reports will track the implementation of energy-saving actions and the associated benefits. Specifically, the reports need to cover:
Phase 3 introduces a requirement to calculate energy intensity ratios for buildings, transport, industrial processes, and other relevant energy uses. This allows organisations to track their energy efficiency performance over time. The data collected during your Phase 3 assessment will be used as a baseline for future comparison.
To fully comply with ESOS, energy audits must cover at least 95% of your organisation’s total energy consumption. ISO50001 certification, Display Energy Certificates (DEC), or Green Deal Assessments (GDA).
Conduct energy audits with a qualified Lead Energy Assessor, who will review your energy usage and prepare an ESOS report. This report must be signed off and declared to the EA via the MESOS platform.
Use the MESOS system to submit your Action Plan by March 5th, 2025. Ensure your plan includes steps to reduce energy consumption, timelines, and projected savings.
After submitting your Action Plan, you must provide progress updates by December 5th, 2025, and December 5th, 2026. These updates should include energy-saving actions completed and their estimated savings.
With the deadline extension in place, organisations need to start planning early. While the EA offers flexibility until March 2025, developing a practical and realistic Action Plan now will ensure compliance and improve energy efficiency outcomes.
Green Element can guide you through the entire ESOS Phase 3 process. Our qualified Lead Energy Assessor Emma Littlewood is on hand to help your organisation comply with the new requirements and create an actionable, energy-saving strategy.
For more information or to get started on your ESOS Action Plan, get in touch today!