ESOS Phase 3
The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment scheme for large organisations based in the UK. ESOS requires organisations that meet the qualification criteria to audit and report on at least 90% of their energy usage to the Environment Agency every 4 years. ESOS has 4 phases and deadlines for submission.
Criteria
ESOS mandatory compliance is aimed at “large undertakings” – clients are regarded as large undertakings if they are:
- a private sector organisation with 250 or more UK employees
- have an annual turnover more than €50 million, with an annual balance sheet total more than €43 million
- UK businesses that meet the qualifying criteria must undertake regular energy audits (once every four years) which are presented as “phases”
- Audits are completed by approved ESOS Lead Assessors who look at energy consumption throughout your business, including buildings, transport, and industrial processes
- Participants of the scheme are not required to implement recommendations identified by the audits – however, the financial benefits of avoiding energy waste can only be achieved when recommendations have been implemented. It’s increasingly acknowledged by large UK businesses that the scheme presents a great opportunity to identify cost saving methods and/or reduce energy waste
Fulfilment
- If you are part of a group of companies which includes other UK large undertakings that fall within the qualification requirements, then you must also comply with ESOS. It falls to the ‘highest UK parent’ (likely to be a UK based Head Office) to ensure the entire corporate group complies
- The Environment Agency are authorised to publicly highlight and apply significant penalties against companies who fail to comply, following qualification for the scheme
- Before a penalty notice is served, compliance notices and enforcement notices are sent to encourage participants of the scheme to meet their obligations
- Non-compliance can result in a fixed penalty of up to £50,000 for failing to undertake an ESOS Audit with an additional £500 per day until rectified
Our qualified ESOS Lead Assessors have delivered a 100% success rate for our ESOS Phase 1 & 2 customers – initial surveys have already begun for our ESOS Phase 3 clients.
Remember, the sooner you begin, the more time you’ll have to facilitate audits and prepare energy reduction strategies.
