What is ESOS and do I need to apply for it?

Overview 

In 2014 the UK Government introduced the Energy Savings Opportunity Scheme (ESOS) as a mandatory energy assessment for large businesses to complete every 4 years, with the end goal being to reduce EU energy consumption. Originally ESOS consisted of three phases; running at 4 years per phase, but it’s now been extended to include an additional phase. Phase 4 will focus not only on your business’s energy consumption but its efforts towards net zero.

If your business is eligible, you will need to qualify for the latest phase of ESOS by the 31^st of December 2026 to ensure your business is included in the four-year compliance phase which begins on the 6^th of December 2023 and runs until 5^th of December 2027.

Want to know how Stadia can help with the ESOS assessment? 

Keep reading to find out. 

ESOS Phase 4 qualifying criteria  

The qualifying criteria for ESOS phase 4 are similar to phase 3 – your business must;

• Be based in the UK.
• Employ more than 250 employees.
• Have an annual turnover of £44 million.

Some changes from phase 3 to phase 4 include;

• A minimum threshold for audited buildings and energy consumption has been introduced.
• Information on carbon reduction will now be publicly available.
• The ESOS portal will now let you report annual progress and record why specific goals haven’t been reached.
• Your business can no longer use Green Deal Assessments and Display Energy Certificates (DEC) to show your business is being compliant with ESOS.
• If your business is part of a corporate group, then ESOS will automatically extend to the whole group.

What do you need to do? 

One of the first things you need to take into consideration with ESOS, is that even though your business may not be eligible now, it could be by 2026? If you feel your business could fit the criteria at any point before 2026 then we advise you get an ESOS review booked in, but don’t worry Stadia is here to help if you’re unsure.

When you are booking in your ESOS review you will need to identify the below;

• Is your business eligible/will you be eligible before 2026?
• Have you identified your total energy consumption?
• Have you identified your significant energy consumption (90% of your total energy consumption)?
• Have you audited your total energy consumption to identify potential saving methods?
• Have you had the audit reviewed by a lead assessor and signed off by directors?
• Have you informed the environment agency you’ve completed the ESOS review?

What if you don’t comply with ESOS? 

If you do not complete and comply with ESOS, then your business could be hit with a number of hefty fines that can have burdensome ramifications for your business. This makes it vital you have everything in order by the qualification date (31^{st of} December 2026).

There are 5 regulations that can lead to your business being penalised if they have not been successfully met,

• Failure to notify.
  • Fixed penalty up to £5,000.
  • £500 daily charge until the breach is remedied, or it hits 80 days.
• Failure to maintain records.
  • Fixed penalty up to £5,000.
  • The cost to the compliance body for undertaking sufficient auditing activity to confirm that an organisation has complied with ESOS.
  • This penalty may also specify ways to remedy the breach.
• Failure to undertake energy audit.
  • Fixed penalty up to £50,000.
  • £500 daily charge until the is remedied, or it hits 80 days.
  • You may be required to undertake a specific ESOS assessment.
• False or misleading statement.
  • Fixed penalty up to £50,000.
• Failure to comply with a compliance notice, an enforcement notice, or a penalty notice.
  • Fixed penalty up to £5,000.
  • £500 daily charge until the breach is remedied, or it hits 80 days.

All the above penalties also come with the risk of publication. If your business doesn’t comply with ESOS, then the regulator will publish the below details on their webpage;

• Who the penalty was given to.
• The legal requirement that was not followed.
• The amount of any financial penalties.

How can Stadia help? 

We understand the importance of the Energy Savings Opportunity Scheme and how big the task can be, that’s why our specialist team is on hand to help your business with the assessments and audits.

We can take the stress away with full management of the whole ESOS process – from arranging the audits with professionals to offering our impartial expert advice, we’ve got you covered.

To find out more contact our friendly team today on 0333 0058 853 or click HERE.