Consultiv Utilities ESOS Compliance Service
We can help you start your ESOS journey right away, whether you took part in Phase 1-3, or if you are new to the scheme and unsure of your energy compliance requirements. We can begin conducting audits now, to ensure the overall process runs as smoothly as possible. This will maximise the time we have to achieve the latest ESOS Phase 4 deadline.
The facts
ESOS applies to large UK organisations fulfilling one of the following criteria:
- Over 250 employees
- Turnover in excess of £44m
- Annual balance sheet total of more than £38m
- An overseas company with over 250 employees in the UK
- The company is part of a larger organisation which falls into any of the above categories
ESOS objectives
The Energy Savings Opportunity Scheme (ESOS) is designed to help large organisations in the UK improve their energy efficiency and reduce their environmental impact. The primary objectives of ESOS are:
- Encourage energy efficiency: ESOS aims to promote energy efficiency within large organisations by requiring them to assess their energy use and identify cost-effective energy-saving measures.
- Reduce carbon emissions: By encouraging organisations to implement energy-saving measures, ESOS contributes to the reduction of carbon emissions and helps the UK meet its climate change targets.
- Lower energy costs: Through the identification of energy-saving opportunities, organisations can reduce their energy consumption and lower their energy bills, leading to significant cost savings.
- Improve energy management: ESOS encourages organisations to adopt better energy management practices, which can lead to more sustainable and efficient use of energy resources.
- Enhance competitiveness: By reducing energy costs and improving energy efficiency, organisations can enhance their competitiveness in the market, benefiting from lower operational costs and improved sustainability credentials.
- Increase awareness and accountability: ESOS raises awareness about energy consumption and the importance of energy efficiency within organisations, fostering a culture of accountability and continuous improvement in energy management.
- Support regulatory compliance: ESOS ensures that organisations comply with energy efficiency requirements, originally introduced under EU legislation, and now covered by UK regulation.
- Stimulate investment in energy efficiency: By highlighting energy-saving opportunities, ESOS encourages organisations to invest in energy-efficient technologies and practices, driving innovation and growth in the energy efficiency sector.
How to achieve ESOS compliance
In order to become ESOS compliant, an audit will need to be conducted covering the energy consumption for your buildings, fleet and processes. A sample of your company’s buildings will require an onsite audit. Optional onsite audits for your company’s fleet and processes (manufacturing) can also be requested.
ESOS compliance can also be achieved if an organisation has achieved ISO50001 certification that covers 100% of the company’s sites. If, however, the ISO 50001 certification only covers part of the company’s sites, an ESOS audit will still be required for the remainder. The ISO50001 standard is a framework through which organisations can become more energy efficient using an energy management system. Any organisation that is covered by ISO50001 can simply advise the Environment Agency that they are ESOS compliant.
Alternatively, an organisation which has obtained a Display Energy Certificate (DEC) that covers 90% of its energy usage which was issued, with a report, within the compliance period, would not need to comply. However, it is important to state that a registered ESOS Lead Assessor is still required to review this compliance.
Energy Savings Opportunity Scheme (ESOS) FAQs
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Energy Savings Opportunity Scheme (ESOS) FAQs
What is qualification date and what is the deadline for ESOS phase 4?
The qualification date for phase 4 of ESOS is 31st December 2026. This means that the 12-month reference period used for your ESOS audit must include this date. The deadline for notification of compliance is 5th December 2027. This should be made with the UK Environment Agency.
What are the benefits of ESOS?
- Cost savings: Identifying energy-saving opportunities can lead to significant cost reductions in energy bills.
- Energy efficiency: Improved energy efficiency can enhance operational efficiency and reduce waste.
- Regulatory compliance: Complying with ESOS ensures that organisations meet legal requirements, avoiding potential fines and penalties.
- Competitive advantage: Energy-efficient operations can improve a company’s competitiveness by reducing operational costs and enhancing sustainability credentials.
- Corporate social responsibility: Demonstrates a commitment to environmental stewardship, improving public perception and stakeholder relationships.
- Long-term planning: Helps organisations develop a strategic approach to energy management and sustainability.
Overall, ESOS provides a framework for organisations to improve their energy management, which can lead to financial and environmental benefits.
What is the difference between ESOS and ISO50001?
ESOS is a mandatory UK scheme requiring large organisations to conduct energy audits every four years to identify energy-saving opportunities. In contrast, ISO 50001 is a voluntary international standard that provides a continuous, comprehensive framework for managing and improving energy performance, leading to formal certification through an accredited body. ISO 50001 is generally viewed as a more in-depth approach and as a result, it can be used as a way to comply with mandatory ESOS requirements.
How long does it take to become ESOS compliant?
While the time required to achieve compliance can vary dramatically from organisation to organisation based on existing energy efficiency measures and business processes. The Government’s Department for Business Energy & Industrial Strategy (BEIS) found that companies took an average of 15 days to implement the necessary processes for compliance – although this time could be spread over several weeks or months as required.
If you are eligible for ESOS Phase 4, it is recommended that you book your audit now to guarantee that an ESOS Lead Assessor will be able to complete your audit before the compliance deadline.
Does ESOS apply to the public sector?
No, ESOS does not apply to the public sector. It is specifically targeted at large private sector organisations in the UK, requiring them to conduct energy audits and identify energy-saving opportunities. Whilst public sector organisations are not mandated to participate in ESOS they may have other regulatory or voluntary schemes to address energy efficiency and sustainability such as those relating to the Energy Performance of Buildings Directive (EPBD), or specific net-zero targets set by the government.
Do charities have to comply with ESOS?
Yes, charities must comply with ESOS if they meet the qualification criteria, which include having 250 or more employees, or an annual turnover exceeding €50 million (approximately £44 million) and a balance sheet exceeding €43 million (approximately £38 million). If a charity falls within these thresholds, it is required to conduct energy audits and report compliance, just like any large private sector organisation.