The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment that aims to ensure that UK businesses and organisations comply with Article 8 of the EU Energy Efficiency Directive. Those who qualify are required to inform the Environment Agency – the administrator of the scheme – after completing ESOS assessments once every four years.
As a component of the evaluation, UK organisations and associations review the energy they use, including any structures, transportation, or processes they use.
An ESOS evaluation means:
- Determining your assets’ total energy consumption
- Determining the areas that use the most energy
- Appointing a lead assessor who is registered with the appropriate professional body – they may be independent contractors or employees.
- Submitting a notification of compliance to the Environmental Protection Agency to notify them
- Maintaining sufficient records of compliance
Why is ESOS Important?
The ESOS assessment is important because it lets industrial organisations accurately measure how much energy they use and find ways to save money by pointing out and fixing energy inefficiencies. In a nutshell, it encourages and empowers businesses to improve their energy efficiency, making them more cost-effective. Furthermore, it helps to lower the nation’s carbon footprint, contributing to the UK’s goal of becoming Net Zero by 2050.
Who Do the Regulations Apply to?
“Large undertakings” in the UK are required to comply according to the website of the UK Government, if they have 250 or more employees, a turnover of more than €50 million (£44,845,000), and an annual balance sheet of more than €43 million (£38,566,700). This includes an overseas company that’s based in the UK, but the public sector is largely excluded from the plan.
Can You Be Fined for Not Adhering?
The Environmental Agency is getting serious about penalties for each break of ESOS guidelines with the scheme now moving into its third phase. Prior to sending notice, the EA will conduct an assessment of the breach. These may include:
- Failure to inform the Environmental Agency of its ESOS compliance: A one-time fine of up to £5,000, followed by a daily fine of up to £500 for each day that the organisation fails to. Due to notification being a crucial requirement, the EA will impose the penalty regardless of whether an energy audit has been done.
- Not adequately keeping records: The cost to the compliance body of confirming that the undertaking has complied and an additional penalty of up to £5,000.
- Not conducting an energy audit: A one-time penalty of up to £5,000 and a penalty of up to £500 for each working day that the company fails to. To address the breach, the company or organisation must also carry out and finish the ESOS assessment.
- Ignoring a notice served: A daily penalty of up to £500 for each working day that the company fails to respond and a one-time penalty of up to £5,000.
- Making a statement that is false or misleading: A fine of up to £50,000.
What Are the Phases of ESOS?
Beginning in 2014, ESOS has been implemented in stages. In each 4-year phase, the Environmental Protection Agency makes adjustments to improve efficiency and compliance. The UK Government’s Response to their ESOS Consultation contains the modifications made in Phase 3.
The phase 1 deadline was December 5th, 2015
Phase 2 was December 5th, 2019
The deadline for ESOS Phase 3 is December 5th, 2023. Your company must adhere to ESOS Phase 3 by the 31st of December 2022 if it meets the definition of a “large undertaking”
The deadline for phase 4 of ESOS will be December 5th, 2027
Who Can Conduct an ESOS Audit?
An ESOS Assessor ensures organisation adhere to ESOS regulations and supervises energy audits and assessments. Only an employee or approved contractor who is a member of the professional body register maintained by the UK Government can conduct an ESOS Audit.
Explore Our EPC Services
Nexus Energy has a dedicated group of certified assessors to assist you in carrying out your energy audit in accordance with ESOS guidelines. We’ll arrange for an ESOS lead assessor to sign off on your behalf after our assessors visit your location to conduct surveys and collect data.
We guarantee, with our expertise, that you will not only comply with the government but will also save time, money, and effort. In addition, we provide domestic and commercial EPC assessments. Explore our offerings or get in touch with us to set up an EPC assessment.