ESOS Energy Savings Opportunities Scheme

The ESOS Energy Savings Opportunities Scheme is a mandatory energy assessment scheme for large organisations in the UK. The Environment Agency is the UK scheme administrator.

Organisations that qualify for ESOS must carry out ESOS assessments every 4 years. These assessments are audits of the energy used by their buildings, industrial processes and transport to identify cost-effective energy saving measures.

The ESOS Energy Savings Opportunities Scheme applies to large UK undertakings and their corporate groups. It mainly affects businesses but can also apply to not-for-profit bodies and any other non-public sector undertakings that are large enough to meet the qualification criteria.

Corporate groups qualify if at least one UK group member meets the ESOS definition of a large undertaking.

For the qualification date for the current (3rd) compliance period (31 December 2022) a large undertaking is any UK company that either:

Employ 250 or more people

Has an annual turnover in excess of £44 million, and an annual balance sheet total in excess of £38 million

You must take part in ESOS if your undertaking is part of a corporate group which includes another UK undertaking or UK establishment which meets these criteria.

If you qualify for the ESOS Energy Savings Opportunities Scheme, but your organisation is not fully covered by ISO 50001, you need to carry out an ESOS assessment. The assessment helps you work out what your organisation needs to do to comply with the ESOS regulations.

1) Calculate your total energy consumption

This is the energy used by assets held or activities carried out by your organisation or group. This includes the energy consumed by buildings, industrial processes and transport.

2) Identify your areas of significant energy consumption

This is the energy used by assets held, or activities carried out, by your organisation that account for at least 90% of your total energy consumption.

3) Assess audit coverage by other valid means

Areas of the business may already be covered by current DEC (display energy certificate) GDA (green deal agreement) or ISO50001, these areas do not need to be re audited. 

ESOS Energy Savings Opportunities Scheme compliant energy audits need to be conducted for the rest of your business up to 90% coverage. 

4) Appoint a lead assessor

You need to appoint a lead assessor to carry out and oversee or review your energy audits and overall ESOS assessment. Lead assessors must be accredited and members of an approved professional body.

5) Submit your ESOS notification of compliance

Your lead assessor can then submit your ESOS compliance to the Environment Agency and the approved professional body. 

NOTE: If you qualify for ESOS and your organisation is fully covered by ISO 50001, you do not need to carry out an ESOS assessment. You just need to notify the Environment Agency that you’re compliant with ESOS.

A penalty will be imposed for each separate breach of ESOS Energy Savings Opportunities Scheme Regulations

• Failure to notify: an initial penalty up to £5,000, plus a daily penalty of up to £500 for each working day the organisation remains in breach. 
• Failure to maintain records: an initial penalty of up to £5,000, plus a “sum representing the cost to the compliance body of confirming that the responsible undertaking has compliance complied with the scheme”. The organisation must also take steps to remedy the breach.
• Failure to undertake an energy audit: 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. The organisation must also take steps to remedy the breach. 
• Failure to comply with an enforcement/penalty notice: an initial penalty of up to £5,000; plus up to £500 for each working day the organisation remains in breach.
• False or misleading statement: up to £50,000.
• 
  

And finally, a list of non-compliant organisations will be published on the government website.

ADR are fully accredited ESOS Energy Savings Opportunities Scheme assessors (Via CIBSE the Chartered Institute of Building Services) for all large organisations, and have been providing ESOS support since day one of the scheme. 

We can help you through the entire process from checking if you are included, through energy consumption calculation and production of ESOS compliant audits to validating compliance, or can oversee the final lead assessor stages for organisations with advanced internal compliance. 

We are also well experienced in ISO50001 and can assist in production of management systems, documentation and compliance for organisations wishing to take that route.