What is ESOS?
ESOS (Energy Savings Opportunity Scheme) is an energy assessment scheme that is mandatory for large organisations in the UK with more than 250 employees, turnover in excess of €50m and an annual balance sheet total of €43m.
How the scheme works
An ESOS Assessment requires participants to do three things:
1. Measure the total energy consumption
- Measure total energy consumption across buildings, transport and industrial activities.
2. Conduct energy audits to identify cost-effective energy efficiency recommendations.
- Ensure that at least 90% of your 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.
- For the first phase of the scheme, any energy auditing activity dating back to December 2011 may be used to support compliance provided that it meets the minimum standards required of ESOS Energy Audits.
3. Report compliance to the Environment Agency
- By 5 December 2015, participants must notify the Environment Agency (as the scheme administrator) of compliance with the scheme. The Assessment must have been reviewed by a Board-level Director and approved by a Lead Assessor.
- ESOS will operate in four-yearly compliance phases. Organisations in the UK must assess whether or not they are required to participate in ESOS on the qualification date of each phase. The qualification date for the first phase is 31 December 2014.
Phase |
Qualification date |
Four-year compliance phase |
Compliance date |
Phase 1 |
31 Dec 2014 |
6 Dec 2011 – 5 Dec 2015 |
5 Dec 2015 |
Phase 2 |
31 Dec 2018 |
6 Dec 2015 – 5 Dec 2019 |
5 Dec 2019 |
Phase 3 |
31 Dec 2022 |
6 Dec 2019 – 5 Dec 2023 |
5 Dec 2023 |
What happens if I don’t comply?
You’ll pay one way or another! There’s a fixed penalty of up to £5,000 if you don’t comply – and you can be charged an additional £40,000 in daily penalties for failure to notify compliance. Your non-compliance will also be made public, so you’ll be named and shamed. Further discretionary penalties apply.
The fines are designed to be higher than the cost of the audit, so you may as well do the audit – and reap the benefits!
How can we help?
We are ESOS Lead Assessors and can oversee the entire process, enhancing your business profitability and competitiveness by implementing the energy efficiency improvements identified in your ESOS assessment. Although the scheme is a mandatory requirement for large organisations, it is your choice whether you simply do the minimum to comply or take the opportunity to turn a regulatory cost into business benefit.
We can oversee all aspects of the process, from initial auditing to final sign off, and offer display energy certification on all buildings, surveys and recommendations, with cost advice. Our team of assessors engineers and surveyors can help you.
Please contact our lead assessor Robert Diamond for further details: robert.diamond@ingletonwood.co.uk