Energy Savings Opportunity Scheme (ESOS)
ESOS Phase 4 is already underway — are you prepared?
*Action Plan deadline*
The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy compliance scheme for large enterprises in the UK. Almost 12,000 organisations are captured by the scheme.
Phase 4 is now underway with the first reporting deadline being 5th December 2024 – just 6 months after the Phase 3 reporting deadline.
Unlike previous phases which focussed on one compliance submission every four years, you will now need to comply with annual submissions to the Environment Agency (EA).
Changes to the legislative guidance have been introduced to strengthen the quality of ESOS reporting and encourage the uptake of recommendations. You will now need to define an Action Plan and report on your progress against this in subsequent years.
Acting on energy-saving initiatives identified in your ESOS audit will strengthen your energy efficiency narrative within your Streamlined Energy & Carbon Reporting (SECR) if you are in scope and help define your wider decarbonisation plans.
Don’t wait to start defining your Action Plan
Our free ESOS Guide contains all you need to know about:
- What you need to do to meet the new ESOS guidance requirements.
- The different routes to compliance that participants can undertake.
- Strengthening ESOS legislation to improve the quality of audits and uptake of recommendations.
- Turning compliance requirements into savings by acting on your insights.
What does ESOS Phase 4 mean for your business?
The energy-saving opportunities (ESOs) identified in Phase 3 will form the building blocks of your Action Plan. ESOs will include the anticipated energy reduction, estimated cost and potential return on investment should you implement the efficiency measures.
Nevertheless, it is not always clear which ESOs to prioritise as this can differ from one organisation to another. It is crucial that you develop a plan that is ambitious, yet achievable, as you will be required to report on progress.
Our approach:
We work with you to tailor your Action Plan to your organisational needs.
We’ll help you monitor progress, maintain your ESOS evidence pack and submit your annual progress updates.
We’ll optimise your route to compliance, exploring all options, conducting on-site surveys as required.
Via our online portal, visualise your day-to-day consumption against baseline (where day+1 data is available) with quick access to your energy audits and final reports.
Routes to compliance
You’ll be required to complete an energy assessment of your areas of significant energy consumption. This means any activities carried out by your organisation that account for at least 95% of your total energy consumption.
You can use a mix of approaches such as ISO 50001 and ESOS energy audits; this is where we can help.
You’ll be appointed a qualified ESOS lead assessor to ensure whichever route you choose meets the scheme criteria.
Risk of non-compliance
The Environment Agency has been appointed as the scheme regulator and is responsible for compliance and enforcement activities. For ESOS Phase 2 they issued 2751 compliance notices, 2133 enforcement notices and 123 civil penalties.
Increased risk of reputational damage during Phase 4
If you do not submit an Action Plan or Progress Update, the Environment Agency will publicly disclose no commitment or action has been taken by your organisation.
Risk of financial penalties up to £90,000
If you fail to notify or maintain adequate records, you will risk significant financial penalties. Equally, if you are selected by the scheme regulators to be audited and asked to provide remedial information, you may be at risk of further penalties should you fail to comply with an enforcement notice.
Finally, failure to undertake disclosures or making a false claim could land you with greater financial penalties.
Is your business eligible?
Eligible organisations need to review their total energy consumption, including buildings, industrial processes and transport – undertaking surveys to identify energy saving opportunities.
Talk to an expert
Rob Leak
Director: Compliance Delivery
“By choosing Inspired to help you fulfil your ESOS compliance requirements, you’ll be in safe hands. By the end of Phase 3, we’ll have completed nearly 1000 ESOS submissions and over 3,900 site audits on behalf of our clients. During Phase 2 this equated to identifying over £120m energy cost savings. At Inspired, we are unique in that we are technology agnostic with in-house capabilities to help you go beyond compliance and implement your energy initiatives, ensuring you create long-term energy cost and carbon savings.”
Guaranteed compliance
100% of our audits have been passed by the Environment Agency. In fact, our ESOS lead assessors have been highly commended by auditors for their diligent submissions.
Access to lead assessors
You’ll be assigned an ESOS lead assessor to project manage your ESOS compliance journey. It is important to remember, the demand for lead assessors will significantly increase as each reporting deadline approaches.
Act on your insights
By acting on your surveys year on year you will turn your investment into real savings. We can provide a wide range of energy and water efficiency services to help you achieve this.
Gain maximum benefit
Our experts can further support you to maximise the full value of your ESOS compliance by aligning your disclosures with your wider energy and carbon reporting requirements.
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Get in touch
ESOS represents a real opportunity to create long-term energy, cost and carbon savings. Defining your Action Plan at the earliest possible time will enable you to realise potential cost and carbon savings sooner.
Contact the team today.