ESOS

Energy Savings Opportunity Scheme (ESOS)

The Energy Savings Opportunity Scheme (ESOS) is a crucial regulatory framework designed to enhance energy efficiency across large organisations in the UK. Established by the Energy Savings Opportunity Scheme Regulations 2014, ESOS mandates that qualifying businesses conduct detailed energy audits every four years. These audits aim to uncover cost-effective measures that can significantly reduce energy consumption and carbon emissions, leading to substantial cost savings. Administered by the Environment Agency, ESOS is essential for businesses striving to improve their sustainability practices and comply with regulatory requirements.

TÜV UK provides certification services that ensure your organisation meets ESOS compliance standards. Our certification services help you streamline the compliance process, avoid penalties and optimise your energy strategy for long-term benefits. Discover how TÜV UK can assist you in achieving your energy efficiency goals through reliable certification.

What is ESOS?

ESOS is a UK-wide scheme requiring large organisations to assess their energy use and identify savings opportunities. It aims to reduce energy consumption and carbon emissions, ultimately lowering operational costs and enhancing sustainability.

Who falls under the scope of ESOS?

ESOS applies to large UK undertakings, including corporate groups. A large undertaking is defined as

Employing 250 or more people or
Having an annual turnover exceeding £44 million and a balance sheet total over £38 million.

The scheme applies throughout the UK, affecting businesses, not-for-profit bodies and non-public sector undertakings that meet the qualification criteria.

Non-compliance with ESOS can result in civil penalties, including fines up to £50,000, daily fines and public disclosure of non-compliance. Organisations must notify the Environment Agency of compliance to avoid enforcement actions.

ESOS Compliance Phases

Phase	Qualification Date	Compliance Period	Compliance Date
1	31 December 2014	17 July 2014 - 5 December 2015	5 December 2015
2	31 December 2018	6 December 2015 - 5 December 2019	5 December 2019
3	31 December 2022	6 December 2019 - 5 December 2023	5 June 2024
4	31 December 2026	6 December 2023 - 5 December 2027	5 December 2027

Phase 3 of ESOS included several key updates aimed at strengthening compliance and enhancing energy efficiency reporting. Organisations were required to standardise audits, produce ESOS reports, and publicly disclose high-level recommendations. The compliance deadline for Phase 3 was extended to 5 June 2024, allowing businesses additional time to meet these requirements. As of now, organisations that qualified for Phase 3 must ensure they have submitted their compliance notification to avoid enforcement actions.

Phase 4 of ESOS, set to culminate in December 2027, introduces significant changes to further align the scheme with evolving energy efficiency and sustainability goals. This phase will remove Display Energy Certificates (DECs) and Green Deal Assessments (GDAs) as compliance routes, streamlining the process and focusing on more robust measures. Organisations will be required to report progress against action plan commitments, ensuring accountability and continuous improvement. Additionally, Phase 4 will emphasise the integration of net zero targets, encouraging businesses to align their energy strategies with broader environmental objectives. These updates reflect the UK's commitment to reducing carbon emissions and enhancing energy efficiency across all sectors. Compliance with Phase 4 will be crucial for organisations aiming to stay ahead in sustainability and regulatory adherence.

Your route to ESOS compliance

Calculate Total Energy Consumption

Assess energy used by buildings, processes and transport.

Identify Significant Energy Consumption

Focus on areas accounting for at least 95% of total consumption.

Calculate Energy Intensity Ratios

Measure energy efficiency performance over time.

Choose Compliance Routes

Select routes like ISO 50001 and appoint a lead assessor.

Conduct Energy Audits

Analyse consumption, identify savings and include site visits.

Complete ESOS Report

Detail assessment, compliance route, and savings achieved.

Notify Environment Agency

Submit compliance notification with director sign-off.

ESOS and ISO 50001

ISO 50001 is an internationally recognised standard for energy management systems, providing a structured framework to improve energy efficiency and reduce costs. For organisations qualifying for ESOS, ISO 50001 certification offers a streamlined path to compliance, eliminating the need for separate ESOS assessments. By adopting ISO 50001, businesses can integrate energy management into their overall strategy, ensuring continuous improvement and sustainable practices.

TÜV UK offers accredited ISO 50001 certification services, helping organisations achieve compliance while unlocking additional benefits such as enhanced operational efficiency and reduced carbon footprint. Our certification process is designed to be cost-effective, providing a viable alternative to traditional ESOS assessments and supporting your journey towards energy excellence.

ISO 50001

Why Choose TÜV UK?

TÜV UK is a leader in ESOS certification, offering:

Expertise: Our auditors are highly experienced, bringing in-depth knowledge and insights to your organisation.
Global Recognition: TÜV UK is part of the TÜV NORD Group, a globally respected certification body.
Impartial Certification: Benefit from an independent, third-party assessment.

Get Started Today!

Embark on your journey to energy efficiency with TÜV UK. Contact us today to learn more about our ESOS compliance services and how we can support your organisation in achieving its energy goals.

FAQs

Frequently Asked Questions

ESOS is a mandatory energy assessment scheme for large UK organisations, requiring audits every four years to identify energy-saving opportunities.

Large UK undertakings, including corporate groups, that employ 250 or more people or have significant annual turnover, in excess of £44 million, and balance sheet total in excess of £38 million.

Non-compliance can result in fines up to £50,000, daily penalties and public disclosure of non-compliance.

ISO 50001 provides a structured framework for energy management, streamlining ESOS compliance and eliminating the need for separate assessments.

Phase 4 introduces the removal of DECs and GDAs as compliance routes, focuses on net zero targets and requires progress reporting against action plans.