ESOS Legislation is changing. 

The UK Energy Savings Opportunity Scheme (ESOS) is presently in Phase 3.

The deadline for compliance is set for 5th June 2024, yet the Environment Agency is holding off on enforcement actions for non-compliance.

Businesses and institutions are granted until 6th August 2024 to register their compliance, provided they have registered on the compliance portal by 5th June 2024.

You can review the official Government guidance on here.

Main changes this year: 

• Businesses adhering to ESOS regulations are required to register their account on the new IT system before 5th June 2024 and submit their compliance notification by 6th August 2024.

• Businesses will be required to account for a minimum of 95% of their total energy consumption. This is referred to as the 'de minimis' rule, previously set at a minimum of 90%.

• Businesses will be required to provide additional detail on how they calculate their energy consumption, which includes energy intensity ratios. An energy intensity ratio measures the energy consumption using a relevant metric (for instance, energy use as kWh per m2 for buildings, kWh per unit output for industry, and kWh per mile for transport).

• Explain how energy audit site visits represent overall energy usage, especially if not all sites are audited.

• Share ESOS Report Details: Distribute ESOS report information to all members of the corporate group.

• Provide more detailed information on energy-saving opportunities, covering costs, benefits, and implementation plans.

• Organisations must submit an annual ESOS Energy Action Plan post-ESOS submission, offering yearly progress reports on energy-saving endeavours and commitments. To know more click here. 

• The Environment Agency will record and publicly publish the Energy Action Plan. Non-compliance or lack of energy-saving efforts will also be publicly disclosed, potentially impacting reputation, competitiveness, and incurring penalties.

• Changes in ESOS affect organisations with ISO 50001 certification, which were previously exempt from reporting. They must now provide detailed reports on energy savings achieved since the previous compliance period.

Despite the Phase 3 deadline extension, Phase 4 of ESOS remains scheduled for 5th December 2027, with compliance spanning from 6th December 2023 to 5th December 2027. Phase 4 will emphasise energy efficiency and require plans towards achieving net-zero status.

Penalties for Non-Compliance:

• Failure to Notify: Initial penalty of up to £5,000.

Daily penalty of up to £500 for each working day in breach, regardless of audit completion.

• Failure to Maintain Records: Initial penalty of up to £5,000.

Additional costs for confirming compliance, borne by the organization.

Remedial actions required.

• Failure to Undertake Energy Audit: Initial penalty of up to £50,000.

Daily penalty of up to £500 for each working day in breach.

Remedial actions required.

New entrants face a lower initial penalty of up to £5,000.

• Failure to Comply with Enforcement/Penalty Notice: Initial penalty of up to £5,000.

Daily penalty of up to £500 for each working day in breach.

• False or Misleading Statement: Penalty of up to £50,000.
  

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.