Energy Saving Opportunities Scheme (ESOS)

The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment and energy saving identification scheme for large undertakings (and their corporate groups). The scheme applies throughout the UK.

You are likely to be in scope of ESOS if, on the qualification date (31 December 2022 for the third phase of ESOS), you are:

1. An undertaking which has 250 or more employees

2. An undertaking which has fewer than 250 employees, but has:

o an annual turnover exceeding £38m and

o a balance sheet exceeding £33m

3. Part of a corporate group which includes an undertaking which meets criteria (1) or (2) above

If you are unsure, our expert ESOS conusltants wil be more than happy to advise on your position. Just get in touch using the contact form further down the page.

Complying with
ESOS.

What if I am an SME or public body?

Although SMEs or public sector bodies are not required to participate in ESOS, they could still benefit from voluntarily meeting the ESOS requirements. ESOS provides a framework you may wish to use to help you identify energy efficiency opportunities, e.g. you may wish to use a qualified ESOS Lead Assessor to undertake energy audits of your operations.

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Measure > Conduct > Report - the key to an ESOS audit:

1. Measure your total energy consumption

Companies must measure their total energy consumption across their buildings, transport and industrial activities.

2. Conduct energy audits to identify cost-effective energy efficiency recommendations

Companies must ensure that at least 90% of total energy consumption is subject to an ESOS compliant energy audit, a Display Energy Certificate, a Green Deal Assessment or a certified ISO 50001 Energy Management System during each phase of the scheme reporting.

3. Report compliance to the Environment Agency (as the scheme administrator)

By 5 December 2023, Companies must notify the Environment Agency (as the scheme administrator) that they have complied with the scheme.

Prior to notifying the Environment Agency, Companies must ensure that ESOS Assessments have been reviewed by a Board-level Director and approved by an ESOS Lead Assessor.

Participants are not required to implement energy efficiency recommendations identified by their ESOS Assessments. However, they will only achieve the financial benefits that arise from avoiding energy waste if they do implement cost-effective recommendations identified.

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