Energy Savings Opportunity Scheme (ESOS)

The Energy Savings Opportunity Scheme (ESOS)

The Energy Savings Opportunity Scheme (ESOS) is a mandatory government scheme, which aims to identify potential cost savings for large businesses by reducing energy use and carbon emissions. 

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 if you would like further information about ESOS, or would like to discuss how we can help with compliance. There's no obligation and we’re happy to advise you.

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Businesses that meet the qualifying criteria, will need to undertake regular energy audits (once every four years) which are presented as phases. ESOS audits are completed by approved ESOS Lead Assessors who look at energy consumption throughout your business, taking into account the buildings, transport and industrial processes that are used.

Participants of the scheme are not required to implement recommendations identified by the assessments/audits, however, the financial benefits of avoiding energy waste can only be achieved when the identified recommendations have been implemented. Overall, the scheme presents a great opportunity for your business to identify cost saving methods, through reducing energy waste.

ESOS Phase 3

Qualification Date- 31st December 2022
Notification of Compliance- 5th December 2023

ESOS Phase 3 is fast approaching, with the qualification for compliance on 31st December 2022, followed by proof of compliance (audits/assessments) submission by the 5th December 2023.

Begin working towards ESOS Phase 3 compliance now with Elmhurst Energy Consultancy. 


Who qualifies for ESOS?

The criteria for ESOS qualification explicitly targets organisations that are considered to be a 'large undertaking'. A large undertaking is classed as having at least one of the following: 

  • 250 or more UK employees
  • An annual turnover in excess of €50 million with an annual balance sheet total in excess of €43 million 

Your first and most important action is to find out whether your business needs to comply with ESOS.  If the answer is yes, then you should contact Elmhurst Energy Consultancy as soon as possible, in order to meet the deadline of the 5th December 2023. 

ESOS for Corporate Groups

If you are part of a corporate group which includes other UK undertaking that fall within the qualification requirements, then you must also comply with ESOS. It is the responsibility of the 'highest UK parent' (Likely to be a UK based Head Office) to ensure the entire corporate group complies.  

Elmhurst Energy Consultancy can aid you in understanding whether or note your company qualifies for ESOS.

Routes to ESOS Compliance

The obvious route to compliance is through an ESOS Lead Assessor who can undertake an ESOS Audit for compliance.

ESOS Audits- Comply with ESOS >

There are a number of possible routes to demonstrate that energy savings assessments are being undertaken within your organisation. Your ESOS Lead Assessor will consider other audits undertaken within the compliance period where they meet the minimum requirements of an ESOS Audit. There are currently four compliance routes available:

  1. ESOS Audit 
  2. ISO 50001 Certification
  3. Display Energy Certificates 
  4. Green Deal Assessments 

Penalties for ESOS Non-Compliance

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 in order to encourage participants of the scheme to meet their obligations.

Non-compliance could 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. An ESOS Lead Assessor will be able to advise you exactly what needs to be done by whom and when in order to ensure compliance.



Related Links


Download ESOS Phase 2 Guide >

ESOS Audits- Comply with ESOS > ESOS Compliance Phase 3 > Energy Management Consultancy >

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