Energy Savings Opportunity Scheme (ESOS)

About ESOS

For full details of how to comply with ESOS requirements see:

• Northernthe IrelandEnergy EnvironmentSavings AgencyOpportunities forScheme organisationsRegulations whose2014 registeredas officeamended isby inthe NorthernEnergy Ireland
• ScottishSavings EnvironmentOpportunities ProtectionScheme Agency(Amendment) forRegulations organisations2023, whosethat registeredcame officeinto isforce in ScotlandNovember 2023
• Secretarythe ofPhase State3 forguidance. Business,We Energywill andupdate Industrialthis Strategyguidance forahead organisationsof whosethe activitiescompliance consistdeadline, whollyin orline mainlywith offeedback offshorefrom activitiesuser testing

OrganisationsThe thatguidance qualifyworks foralongside ESOSthe mustlegislation carryto outhelp ESOSparticipants assessmentsunderstand everythe 4requirements, years.but Thesethe assessmentsultimate aresource audits of theESOS energyrequirements usedis bythe theirlegislation.

About the buildings,Energy industrialSavings processesOpportunity andScheme transport(ESOS)

ESOS is toa identifymandatory cost-effective energy savingassessment measures.

Deadlinesscheme for ESOSorganisations compliance

Organisationsin mustthe notifyUK that meet the qualification criteria. The Environment Agency byis athe setUK deadlinescheme administrator.

Organisations that theyqualify havefor ESOS must compliedcarry without their ESOS obligations.assessments Theevery deadline4 foryears. theThese firstassessments complianceare periodaudits wasof 5the Decemberenergy 2015.used Theby deadlinetheir forbuildings, theindustrial secondprocesses complianceand periodtransport.

The (ESOS phaseaudit 2)is wasdesigned 5to Decemberidentify 2019.

Find out if you qualifiedqualify for for ESOS phase phase 23

ESOS applies 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 nonnon-public public sector undertakings that are large enough to meet the qualification criteria.

Your organisation qualifiedqualifies for the secondthird compliance period (ESOS phase 3) if, on 31 December 2018,2022, it met the the ESOS definition definition of a large undertaking.undertaking.

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

UK registered establishments of an overseas company will also need to take part in ESOS (regardless of their size) if any other part of their global corporate group activities in the UK meet the ESOS qualifying criteria.

If you’re very close to the qualification threshold or have substantially increased or decreased in size in recent years, read the the full guidance on complying with with ESOS. This includes additional information on how to assess if you qualify.

Public sector organisations do not usually need to comply with with ESOS. For more information on organisations that do not need to comply,comply, see section 1.2 of thethe full full guidance on complying with with ESOS.

Large undertakings

For the qualification date for the secondthird compliance period of ESOS (31 December 2018)2022) a large undertaking is any UK company that either:

• employedemploys 250 or more peoplepeople, or
• hadhas an annual turnover in excess of €50£44 millionmillion, (£44,845,000), and an annual balance sheet total in excess of €43£38 million (£38,566,700)

ForA theperson qualificationis dateemployed forby thean third compliance period (31 December 2022) a large undertaking isif anythey UK company that either:are:

• employsan 250employee
• an owner or more peoplemanager
• hasa anpartner

An annual‘employee’ turnoveris ina excessperson ofemployed £44under million,contracts andof anservice. annualTheir balancecontracted sheethours totaland instatus excess(full oftime £38or million

Forpart yourtime) accounts,are youirrelevant shouldto usetheir theclassification Bankas ofan Englandemployee.

For exchangefurther rateguidance betweenon thewho Euroqualifies andfor poundESOS, sterlingsee atsection close1 ofin business on the qualificationfull date.guidance.

Deadlines for ESOS compliance

YouOrganisations mustthat takequalify partfor in ESOS ifmust yournotify undertakingthe isEnvironment partAgency ofby a corporateset groupdeadline whichthat includesthey anotherhave UKcomplied undertakingwith ortheir ESOS obligations.

The UKdeadline establishmentfor whichsubmitting meetsnotification theseof criteria.

Wherecompliance afor corporatephase group3 participatesof in ESOS, unlessis 5 otherwiseJune agreed,2024 (previously the5 highestDecember UK2023).

Organisations parentshould willlook actto asmeet athis ‘responsiblecompliance undertaking’notification anddeadline bewhere responsiblepossible. forHowever, ensuring the groupEnvironment asAgency aand wholeRegulators complies.

UKfor registeredthe establishmentsDevolved ofAdministrations anwill overseasnot companytake willenforcement alsoaction needagainst toyou takeif partyou indo ESOSnot (regardlesscomply ofwith theirthis size)legal ifrequirement anyprovided otherthat partyou ofmeet theirboth globalthe corporatefollowing groupconditions:

• registration activitiesof inyour theaccount UKin meet the ESOSMESOS qualifyingsystem criteria.

  Anhas ‘establishment’been iscompleted aby branch5 withinJune the2024

• you meaningsubmit your notification of thecompliance Eleventhby Company6 LawAugust Directive2024

The (89/666/EEC),qualification orthresholds aand placedate ofhave businessnot thatchanged; isESOS notstill suchapplies ato branchall butorganisations where(and theretheir iscorporate somegroups) degreethat ofwere physicalclassed presenceas inlarge theundertakings UK.on 31 December 2022.

AOrganisations personthat isqualify employedfor byESOS anin undertakingPhase if3 theywill are:be required to comply with the Energy Savings Opportunities Scheme (Amendment) Regulations 2023.

Changes include:

• anstandardization employee
• anthrough ownerstrengthening orrequirements managerfor audits
• aall partner

Anparticipants ‘employee’are isnow aexpected personto employedproduce underan contractsESOS ofreport, service.action Theirplan contracted hours and statusannual (fullprogress timereports

participants orwill partnow time)also arebe irrelevantrequired to theirpublicly classificationdisclose ashigh anlevel employee.

recommendations

The

ESOS regulation numberand ofpenalties

Your environmental employeesregulator means is theresponsible averagefor numbercompliance ofand peopleenforcement employedactivities. byIt themay undertakingissue incivil thesanctions year.

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1. Find

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3. Divideof thethe full totalguidance.

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available on data.gov.uk.

CompleteIf anyou do not qualify for ESOS phase assessment3

If you qualifyhave forbeen ESOScontacted andby yourthe organisationEnvironment isAgency fullyin coveredthe bypast, ISOor 50001, you doqualified notfor needphase to1 carryand/or outphase an2 ESOSbut assessment.not Youfor justphase 3, you need to notifytell the Environment Agency thatyou you’redo compliantnot withqualify. You can do this using the MESOS system.

Complete an ESOS.

 assessment

IfCompleting youan qualify for ESOS, butassessment yournow organisationhas isadditional notrequirements, fullyin coveredline bywith ISOthe 50001,2023 youregulations.

For needfull todetails carryof outhow anto comply with ESOS assessment.requirements, Thesee:

• the assessmentEnergy helpsSavings youOpportunities workScheme outRegulations what2014 youras organisationamended needsby tothe doEnergy toSavings complyOpportunities withScheme (Amendment) Regulations 2023
• the ESOSPhase regulations.
  3 guidance. We will update this guidance ahead of the compliance deadline, in line with feedback from user testing

The assessmentguidance takesworks intoalongside accountthe energylegislation directlyto coveredhelp byparticipants Displayunderstand Energythe Certificatesrequirements, (DECs),but Greenthe Dealultimate Assessmentssource (GDAsof ESOS), orrequirements ISOis 50001.the legislation.

For

Summary yourof assessment,the yousteps needrequired to:

to complete an ESOS assessment

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. To find out how to calculate your total energy consumption, read the full guidance on complying with ESOS.

2. Identify your areas of significant energy consumption

This is the energy used by assets held, or activities carried out, by your organisation that accountneeds forto atbe leastincluded 90%in ofan your total energy consumption.audit Youor thencovered needby to:

1. Findanother outroute whetherto ISOcompliance 50001,(see DECs4 orbelow) GDAsand covermust anyaccount offor yourat areasleast 95% of significantyour total energy consumption.

2. Identify

   3. whetherCalculate ESOSyour compliant energy auditsintensity haveratios

   You been,must orcalculate needenergy tointensity be,ratios carried out for theeach areasof:

   • buildings
   • transport
   • industrial ofprocesses
   • other significant energy consumptionuses notoutside coveredof bythe ISOabove 50001, DECs or GDAs.
     3

AsAn longenergy asintensity 90%ratio ofis youra totalmeasurement energywhich consumptionrelates isan covered,organisation’s youconsumption canto usean aappropriate mixindicator ofactivity. approachesThis withallows somecomparison of your energy consumptionefficiency coveredperformance byover ISOtime.

For 50001full –details someon bycalculating DECsenergy orintensity GDAsratios, andsee somesection by6 ESOSin energythe audits.full guidance.

3. Appoint a lead assessor

YouWe needrecommend tothe appointapproach aset leadout assessorin tothe carryfull outguidance, andbut overseethe orlegal reviewrequirement youris energythat auditsthe andindicator overallfor ESOSeach assessment.organisational Leadpurpose assessorsis: 

• quantifiable
• associated canwith bethe employeesassets or externalactivities contractorsthat asrelate longto asthe theyspecific areorganisational members of an approved professional body register.
  purpose

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Professionalapproach bodiesyou canhave submittaken registersin ofyour theirevidence memberspack.

4. forDecide approvalon foryour themroute(s) to actcompliance asand ESOSappoint a lead assessors.

assessor

4. Notify the Environment Agency

You needmust tochoose submitone youror ESOSmore notificationroutes of compliance to thecompliance, Environmentensuring Agencyall whenareas youof haveeither undertakensignificant anor ESOStotal assessmentconsumption and(as appropriate) are compliantcovered.

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5.

• it Keepmust records

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it formatmust foranalyse this.

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YourThe submissionESOS mustreport beis asa accuraterecord asof possible.your Ifassessment theand includes information youabout submittedthe iscompliance inaccurate,route emailused esos@environment-agency.gov.uk,and quotingwhat theit originalcovers, submission date, the Companiesenergy Housesaving registrationopportunities numberidentified (if applicable) and theenergy namesavings ofachieved since the organisationprevious forESOS whichcompliance you made the notification.date.

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an ESOS compliantassessment energyand audits

Anare ESOS compliant energywith audityour mustobligations, meetyou thesemust criteria:

1.submit Ita mustnotification beof basedcompliance onusing 12the months’Managing verifiableyour data

ESOS system.

The datanotification must:includes:

• bedetails forabout ayour continuous periodorganisation
• beginhow noit earlierhas than 6 December 2014 for the second compliance period (and no more than 12 months before the start of future compliance periods)complied
• begin no more than 24 months before the start of the energy auditconsumption information
• notenergy havesavings beenopportunities usedthat ashave thebeen basisidentified

The deadline for ansubmitting energy audit in a previous compliance period

2.notification Itfor mustthe analysecurrent the(third) participant’scompliance energyperiod consumptionis and5 energyJune efficiency

2024.

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3.

• you Itregister mustyour identifyaccount energyin savingthe opportunities

Energysystem savingby opportunities5 shouldJune be2024

you reasonablysubmit practicableyour andnotification costof effectivecompliance toby implement.6 RecommendationsAugust should2024

Before includesubmitting the estimatedcompliance costsnotification, andyou benefitsmust ofget implementation.

Youone shouldboard assesslevel costdirector or effectivenessperson byexercising comparingmanagement thecontrol reductionfrom inone units of energy or energy spend with the costundertakings ofin implementing the measure.

Calculatingparticipant thegroup costto ofsign implementingoff a measure should be based on anboth analysis of whether the investmentESOS willassessment beand economical over its entire life. This would include taking into account the costcontent of purchase,the installation,compliance maintenance and depreciation.notification.

ThereSee section is11 noin regulatory requirement for participants to implement the energyfull savingguidance for opportunitiesmore identified.details Thison isDirector for each organisation to determine themselves.sign-off.

SiteUse visitsthe duringManaging anyour audit

Organisations are expected to carry out site visits as part of their ESOS audits.(MESOS) Itsystem is not necessary to visitregister everyPhase site.3 Regardlessuser ofand theorganisational numberaccounts

You ofcan sitepartially visits,complete organisationsyour neednotification to ensure they have collected and analysedsave datait for allsubmitting their areas of significant energy consumption.later.

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theStart energyyour savingnotification opportunitiesof identifiedcompliance innow their site visits to their wider portfolio.

The leadscheme assessoradministrator andwill participantpublish organisationthe shouldmajority determineof athe suitableinformation sitein visityour samplingcompliance approachnotification, towith reflect the energyexception consumption patterns of theirpersonal assetsor andcommercially activities.sensitive Thisdetails isand notfeedback. prescribedAppendix inB legislationof orthe full guidance –provides itdetails isof upthe toinformation yourthat organisationwill andbe leadpublished.

8. assessorEvidence to agree this.

pack

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ESOS regulationaction plan and penaltiesannual progress updates

YourFor environmentalPhase regulator3 isonwards, responsibleESOS forwill complianceinclude andadditional enforcementcompliance activities.stages Itfollowing maythe issuesubmission civilof sanctionsthe includingcompliance financialnotification: penaltiesESOS ifaction anplan organisationand doesESOS notannual meetprogress the scheme’s obligations.updates.

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For sectiondetails 9about of the full guidance on complying with ESOS.

We publishaction aplans, summarysee ofSection the12 penaltiesin imposedthe onfull data.gov.ukguidance.

Approved

Annual registersprogress of ESOS lead assessors

updates

AllFollowing participantssubmission needof tothe haveaction theirplan, ESOSyou assessmentmust signedsubmit off by an ESOSannual leadprogress assessor.update Contactagainst detailsyour foraction approvedplan leadcommitments assessorsin are listed on the websites2 ofsubsequent the approved professional bodies.years.

ToThe becomedeadline for submitting an ESOSannual leadprogress assessorupdate youis need12 tomonths beafter athe memberaction ofplan andeadline, approvedand professionalthen body12 register.months Findafter outthe howsubmission todeadline becomefor athe memberfirst ofprogress anupdate. approvedFor professionalthe bodythird registercompliance onperiod, the websitesdeadlines ofare those5 alreadyDecember approved.2025 Theand list5 hasDecember links2026.

The toprogress theupdate approvedmust registers.be Contactsigned theoff approvedby organisationsa ifboard youlevel needdirector further(or informationequivalent), aboutand theirsubmitted applicationvia processesthe ornotification approvedsystem, leadwhere assessorsit onwill theirbe registers.published.

ItFor isfull yourdetails responsibilityof toESOS selectannual aprogress leadupdates, assessorsee withSection the13 necessaryof skillsthe and experience to help your business comply with ESOSguidance.

Approved

List registers of approved registers for ESOS lead lead assessors: organisation and name of register

assessors

• Association of Energy Engineers – – certified energy auditor international or certified energy manager international
• CIBSE (The Chartered Institution of Building Services Engineers) – – CIBSE low carbon consultant (LCC) register, register, ESOS lead lead assessor subset
• Elmhurst Energy Systems – – Elmhurst approved approved ESOS lead lead assessor
• Energy Institute – – chartered energy manager, register of professional energy consultants
• Energy Managers Association – – EMA energy saving opportunity scheme lead assessor register
• Institution of Chemical Engineers – – register of chartered chemical engineers (MIChemE/FIChemE) (MIChemE/FIChemE) ESOS  LEA
• Institute of Environmental Management and Assessment – – register of IEMA members who can act as third-party lead assessors
• Institution of Environmental Sciences – IES lead energy assessor
• Quidos
• Stroma Certification Ltd –  – ESOS lead lead energy assessor certification

ESOS

If publishedyou data

Thewant to become a lead assessor, you have to be (or become) a member of an approved professional body register. Individuals cannot apply directly to the Environment Agency hasto publishedbe approved. You can contact the followingapproved dataorganisations inlisted relationhere tofor further information about the application processes or approved lead assessors on their registers.

ESOS:

published data

Notification of compliance data

SeeThe Environment Agency publishes the data provided by the organisations that submitted a notification of compliance.compliance Thein Environmentphases Agency1 publishesand this2 of ESOS. This data is published to meet itsthe Environment Agency’s statutory responsibility under the Energy Savings Opportunity Scheme Regulations 2014 and alsoin alignment with government open data policies.

The datapublished in the spreadsheet:data:

• shows the answersinformation toon existing requirements that are published by the questionsscheme administrator, as detailed in Appendix B of thethe full full guidance on complying with with ESOS
• does not include personal data – this is protected under the General Data Protection Regulation 2018
• contains no amendments – unless askedrequested to do so or to remove personal data
• has not been verified for compliance – it is a record of notifications

Note:

• someSome organisations within a group may be covered by a notification of a UK parent and may not be readily identifiable
• identifiable.

  More information about ESOS

  The introduction of ESOS in 2014 addressed a finding in the Environment2012 AgencyUK willEnergy beEfficiency checkingStrategy forthat compliancelack overof information was a key barrier to the nextuptake 4of years

energy efficiency measures by business.

More

Government informationestablished aboutESOS to implement Article 8 (4 to 6) of the EU Energy Efficiency Directive (2012/27/EU). The ESOS

Regulations 2014 give effect to the scheme.

MoreThe detailscurrent onhigh cost of energy and the UK’s net zero legislation has made it more important to help businesses reduce their energy and emissions since leaving the EU. A Post Implementation Review of ESOS scheme,in your2020 obligationsfound andbusinesses howwere unlikely to complycarry areout setenergy outaudits inunless themandated fullto guidancedo onso, complyingwhich withmakes ESOS. an important lever in encouraging energy efficiency in business.

UK regulators

ForThe moreUK informationregulators emailare:

• Environment esos@environment-agency.gov.uk.Agency Iffor youorganisations wantwhose anregistered ESOSoffice adviseris toin callEngland
• Natural youResources backWales pleasefor provideorganisations yourwhose phoneregistered numberoffice is in Wales
• Northern Ireland Environment Agency for organisations whose registered office is in Northern Ireland
• Scottish Environment Protection Agency for organisations whose registered office is in Scotland
• Secretary of State for Department for Energy Security and detailsNet aboutZero yourfor query.
  organisations whose activities consist wholly or mainly of offshore activities

Contact details

For offshoremore relatedinformation querieson emailESOS, bst@beis.gov.ukemail esos@environment-agency.gov.uk.

The Environment Agency will respond within 10 working days. Send your queries well in advance of eachthe compliance deadline to ensure you have enough time to fulfillfulfil your obligations before submitting your notification of compliance.

For queries on the MESOS reporting system, email esos-it@environment-agency.gov.uk.

For offshore related queries, email OPRED@energysecurity.gov.uk.