Energy Savings Opportunity Scheme (ESOS)

What is ESOS?

The Energy Savings Opportunity Scheme (ESOS) is aimed at increasing energy efficiency to improve business profits and competitiveness as well as mitigating climate change.

It is a government scheme set up to implement areas of the EU Energy Efficiency Directive.

The scheme is aimed at large commercial businesses. Those that qualify must carry out repeated audits scheduled to happen every 4 years to identify cost-effective energy saving measures. Organisations fully covered by ISO 50001 do not need to comply, but have to inform the Environment Agency.

Phases 1 and 2 have passed, Phase 2 submission being required by 5th December 2019. Phase 3 started 6th December 2019, with a qualification date of 31st December 2022.

Changes to the requirements for Phase 3 mean the submission date has been delayed until 5th June 2024 to allow more time to comply. It is expected additional changes may be brought in for Phase 4.

Do you qualify for ESOS?

ESOS applies to UK organisations and their corporate groups that are large enough to meet one of these qualification criteria:

• Employ more than 250 people
• Have an annual turnover in excess of £44million and an annual balance sheet in excess of £38million
• You are part of a group where one entity meets the above criteria

Some exemptions:

• Housing trusts
• Public bodies
• Fully covered by ISO 50001

Full details can be found here.

What are the likely costs of complying with ESOS Phase 3?

You will need a Lead Assessor as authorised by the Environment Agency to undertake an ESOS assessment. As you would expect the cost does depend on the size of the organisation. It is advisable to not look for the cheapest but one that offers a competitive price, and has the necessary experience to help you see benefits from the process.

What data will you need for ESOS Phase 3?

To comply you’ll need to report 12 months energy consumption, which includes December 2022, for buildings, industrial processes and transport. This means having access to the likes of:

• Gas and electricity bills
• Use of other gases and oil
• Onsite generation consumption
• Business mileage

How can you benefit from ESOS Phase 3?

ESOS will take time and have a cost to your business, but by embracing this with a good Lead Assessor you could look to recover costs by making changes to how you use your energy, which is the intention of the process.

You may find that this opens opportunities for additional projects and savings.

What happens if I do not comply with ESOS Phase 3?

Any organisations that qualify for the ESOS scheme but fail to meet their obligations by the deadline will be issued with a non-compliance enforcement notice, alongside potential fines. Non-compliant undertakings will be reviewed on a case by case basis. Companies in breach of the ESOS regulations may also be named and shamed.

How can we help?

We can provide organisations with bespoke and tailored support as well as guidance surrounding compliance with ESOS.

If you qualify for ESOS it is all about providing evidence that you have been able to identify energy efficiency and energy management opportunities when you have an audit; this is where we can help.

Indigo Swan can either help with an ISO 50001 Energy Management standard which excludes you from the ESOS process or can assist with ESOS compliance, including providing a Lead Assessor.

Should you prefer some tools and information to support your own submission, we can discuss accessing and analysing half hourly data from smart meters to demonstrate a starting point and the impact of measures.