Businesses urged to book ESOS assessments to avoid fines of up to £90,000 Tuesday, 14th March 2023

Our sustainability experts are urging businesses to get ahead of the rush and book mandatory Energy Savings Opportunity Scheme (ESOS) assessments as soon as possible to avoid fines of up to £90,000.

Any large, non-SME (small and medium-sized enterprise) company is legally required to conduct a thorough energy audit of their entire operations and submit the report, signed by an accredited ESOS lead assessor, to the Environment Agency by 5 December 2023. 

But as assessors get fully booked up close to crunch time, we encourage businesses to complete their assessments early this year or risk facing hefty non-compliance fines.

Shawn Galliers, Director of Sustainability and qualified ESOS lead assessor said: “Although we’re only midway through March, the ESOS submission deadline of 5 December is approaching fast. Every year we see businesses failing to book assessments early and then scrambling to find a lead assessor in November. The full ESOS process can take months, so we recommend getting ahead of the curve and submitting your report as soon as possible.

“The first step is identifying if your organisation qualifies for ESOS. Any UK company with more than 250 employees or an annual turnover above £44M and an annual balance sheet over £38M must comply. But if your company is part of a corporate structure of which any other business qualifies, your company also qualifies. For instance, if you have a subsidiary company with over 250 employees then you too must complete an ESOS assessment – even if that subsidiary is based outside the UK.”

First introduced in 2014, ESOS is part of the Government’s push to ensure the UK reaches its goal of net zero emissions by 2050. The scheme is now in Phase 3, with report submissions due every four years. 20 UK companies were fined for non-compliance during ESOS Phase 2. Fines can be up to £50,000 plus £500 for each working day an organisation remains in violation, with a maximum of 80 days.

Qualifying organisations must submit their total energy consumption for the year, including owned transport and grey fleet, and identify opportunities for improvement. The reports are legally required to be signed off by both a qualified ESOS lead assessor and the company director(s).

Companies are not required to implement the energy saving opportunities identified through ESOS assessments. However, many UK companies can save thousands annually just by making simple changes such as switching to high efficiency LED lighting.

Here at Ingleton Wood, we offer a full Phase 3 ESOS assessment with qualified ESOS Assessors and in-house M&E teams, including liaison with the Environment Agency, full surveys, reports and meetings to explain the findings. We also provide clients with a road map to any net zero targets they have adopted, including insights into long-term carbon reduction and sustainability.

For more information about our sustainability services, visit https://www.ingletonwood.co.uk/sustainability.php 

For more information about ESOS, visit https://www.gov.uk/guidance/energy-savings-opportunity-scheme-esos