ESOS (Energy Savings Opportunity Scheme): WHAT IS IT?

The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy audit scheme in the UK for large organisations and it must be completed every four years.

The main goal is to assist companies in identifying and implement cost-effective energy savings and take action in lowering carbon emissions across the UK. 

It was introduced as the UK government’s response to Article 8 of the EU Energy Efficiency Directive (EED).

WHAT IS THE BENEFIT?

The scheme is designed in such a way that, if your business complies with the energy-saving advice provided along with the assessment, the cost savings on energy bills should surpass the assessment fee. In fact, according to the government, participants might save 13.5 times the assessment fee.

DO I NEED TO COMPLY?

Your business needs to comply to ESOS if you meet either of the following criteria on the qualification date of 31st December 2022:

• employ 250 or more people
• have an annual turnover in excess of £44 million and an annual balance sheet total in excess of £38 million

This includes any overseas company with a UK registered establishment which has 250 or more UK employees (paying income tax in the UK).

The scheme largely excludes the public sector.

If your company operates in Europe we recommend a centralised pan-European EED route to achieve the most from compliance and to reduce costs.

If your company is fully covered by ISO 50001, there is no requirement to carry out an ESOS assessment, but a notification to the regulator must be sent out.

WHAT IS THE DEADLINE?

Notification of compliance to the Environment Agency must be done by 5 December 2023.

WHO IS THE REGULATOR?

The Environment Agency manages the scheme for the UK and regulates it in England.

In Scotland, the scheme is regulated by the Scottish Environment Protection Agency.

In Northern Ireland, it is regulated by the Northern Ireland Environment Agency.

In Wales, it is regulated by Natural Resources Wales.

For UK offshore, it is regulated by the Secretary of State for Business, Energy and Industrial Strategy.

WHAT ARE THE REQUIREMENTS?

• Appoint a qualified lead assessor
• Energy audit to be carried out as per UK guidelines
• Calculate total energy consumption
• Identify areas for energy efficiency 
• Board directors to review and sign the assessment
• Notify the Environment Agency of compliance

HOW LONG DOES IT TAKE TO COMPLETE THE ASSESSMENT?

There is no right answer as this depends on each business structure, however planning in advance is key and we would highly recommend starting as soon as possible as it may take over several months.

WHAT ARE THE PENALTIES FOR NON-COMPLIANCE?

An initial penalty of up to £50,000, plus a daily penalty of up to £500 for each working day the organisation remains in breach.

Companies that fail to comply may risk reputational damage by being “named and shamed” publicly on the Environment Agency website.

OUR APPROACH:

We are trusted by many clients for our specialist advice, our ability to make smart decisions and our readiness to provide lasting value. Our broad technical expertise and deep market knowledge means we are well placed to offer insight and pragmatic advice.



Would you like to know more?

Or do you have any questions about one or more of these topics?

Feel free to contact us at hello@bramoenergy.com.