What is the Energy Savings Opportunity Scheme? – All You Need To Know

At Ignite, we are experts in energy compliance and making sure that compliance is more than just a box-ticking exercise. Working with our team, ESOS is a catalyst for transformational change in your business.

In this guide, we set out all you need to know about ESOS and kickstart the process of your organisation becoming ESOS compliant.

Ignite provides full ESOS compliance services with a highly experienced team that includes fully qualified ESOS lead assessors.

What is the Energy Savings Opportunity Scheme (ESOS)?

ESOS (Energy Saving Opportunity Scheme) is an obligatory energy assessment scheme for organisations and large enterprises in the UK that meet the qualification criteria.

It requires qualifying companies to carry out audits to identify energy saving measures. The legislation was created by the Environment Agency who are responsible for enforcing it in England (other countries in the UK are enforced by other organisations).

Who qualifies for ESOS?

ESOS applies to large undertakings and corporate groups containing large endeavours in the UK that meet the following qualification criteria.

It includes any…

UK company that:

  • employs 250 or more people
  • has an annual turnover in excess of 50 million euros and an annual balance sheet of over 43 million euros
  • Any overseas companies with a UK registered establishment that employs more than 250 UK employees.

If your organisation or business was officially identified as a large undertaking by the end of 2014, you need to comply with the ESOS scheme.

Corporate groups in the UK will qualify if at least one member meets the ESOS definition of a considerable undertaking.

Although ESOS primarily affects large businesses, it can also apply to non-profit-making organisations and any other non-public sector with undertakings large enough to meet the ESOS criteria.

How do you comply with ESOS?

If your organisation qualifies, an ESOS assessment will occur every four years. This is to audit the energy use of industrial processes, buildings and transport to correctly classify worthwhile energy saving measures. It is mandatory for recognised ESOS corporations to notify the Environment Agency when they have complied with their ESOS obligations. ESOS deadlines must be met.

Read more about SECR, its impact on your business and how Ignite Energy can turn it into a positive driver for change.

ESOS Assessment

An ESOS assessment includes a number of steps that you must take. Ignite is highly experienced in completing all steps in a hassle-free and efficient manner. We are fully qualified lead assessors too.

  • Calculate your total energy consumption
  • Identify your areas of significant energy consumption (account for at least 90% of your total energy consumption)
  • Appoint a lead assessor
  • Notify the Environment Agency by submitting your ESOS notification of compliance
  • Keep records

These steps can be seen with additional detail on the government’s ESOS webpage.

ESOS Regulations & Fines

The Environment Agency has a clearly outlined approach to ESOS regulation and penalties. Non-compliance of ESOS assessments can lead to compliance and enforcement notices and potential ESOS fines. These range from £5,000 to £90,000 depending on the nature of the penalty. Businesses that are not ESOS compliant may also be named which can be extremely damaging for a company’s reputation.

What is the deadline for ESOS phase 3?

The deadline for ESOS phase three is 5th June 2024. This means you need to inform the Environment Agency of your compliance by this date. We’ve gone into detail about ESOS Phase 3 in our guide, including what you need to do to comply.

If your organisation is notified that it qualifies as a ‘large undertakings’ on or before 31 December 2022, you too will need to comply with ESOS phase 3.

If you’re a qualifying organisation then you should already be considering your steps to ESOS compliance. Find out more about Ignite’s ESOS compliance services.

Benefits of ESOS

ESOS is designed to help your organisation identify and implement cost effective energy savings. ESOS audits are a catalyst for energy efficiency improvements that will move your business towards a more sustainable and cost-effective future. The benefits of ESOS should be viewed in a wider context of proactive energy management, where energy efficiencies are identified and implemented regularly.

Ignite – your compliance partner

Ignite Energy can help your business become ESOS compliant. Our expert compliance team and certified lead auditors are able to deliver all the requirements of the ESOS scheme internally. We can carry out the energy audits, deliver reports and ensure that energy efficiency projects are right for your organisation and make a real difference.

Find out more about our full ESOS compliance service and visit our energy compliance page. There’s every chance you will also need to report on SECR as well as ESOS – find out more about SECR Compliance.

Book an initial consultation today by calling 0333 023 2222 or email us at enquiries@igniteenergy.co.uk, or complete our enquiry form and we’ll get back to you as soon as possible.

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