What is the Energy Savings Opportunity Scheme (ESOS)?

The Energy Savings Opportunity Scheme (ESOS) is a mandatory requirement for all large enterprises in the UK. It is estimated that around 10,000 organisations, covering up to 200,000 buildings, are expected to be included in ESOS. The scheme requires recording and reporting of energy data for buildings, transport, and industrial processes over a 12-month period. Additionally, the scheme requires energy surveys accompanied by cost-effective recommendations to reduce energy demand and improve energy efficiency. All of the evidence gathered must be signed off by an accredited ESOS Lead Assessor.

Organisations that fail to comply with ESOS Phase 3 by the deadline date of 5th December 2023 are likely to face substantial financial penalties.

What are the 2023 ESOS Compliance changes expected for Phase 3?

This summer, the Offshore Petroleum Regulator for Environment & Decommissioning announced the following changes to ESOS Phase 3 requirements, as detailed below:

• Requirement for a summary template to include compliance information in the ESOS report.
• Requirement to submit additional data in the compliance notification (as set out in Annex A).
• Requirement to include an energy intensity metric in ESOS reports.
• A change to the de minimis exemption so that participants’ Significant Energy Consumption covers at least 95% of their Total Energy Consumption (as compared to 90% in Phase 2).
• Requirement for ESOS reports to provide more information on next steps for implementing recommendations.
• Requirement for participants to set a target or action plan following the Phase 3 compliance deadline, on which they will be required to report against annually.
• Requirement to share ESOS reports with subsidiaries.

According to the announcement, ‘Participants are required to comply with Phase 3 of ESOS and Government still intends to make the changes announced in its response to the ESOS consultation. To ensure there is reasonable time for participants to meet the new requirements and for assessors to carry out assessments, ESOS participants will not be required to comply until 5 June 2024 (currently 5 December 2023), the revised deadline for when they will be required to notify compliance. This extension is in line with requests from stakeholders.’

The GEP Environmental team has implemented these changes, updating our process and report format to accommodate these updates. Our team is perfectly placed to continue to offer compliant audits.

Who Qualifies for ESOS?

Companies need to comply if they meet one of the below criteria:

• 250 employees or more
• An annual turnover greater than £44,000,000, and an annual balance sheet greater than £38,000,000

How can GEP Environmental help you?

Our highly qualified workforce consists of environmental consultants, energy engineers and trainers with expertise in carbon management, ISO management systems, sustainable resource and waste management, energy efficiency, building surveying, low carbon building design and renewables.

Our ESOS team maintain membership with professional bodies including the Institute of Environmental Management and Assessment (IEMA), the Institute of Environmental Sciences (IES) and the Energy Institute (EI). We pride ourselves on our ability to deliver practical long-term solutions that create financial benefits and add value to our clients’ services, buildings, portfolios and credentials.

We can support your organization with ESOS by:

• Carrying out Pre-qualification and gap analysis
• Reviewing your buildings, processes and transport energy usage along with your data collection and recording
• Creating a bespoke audit program to meet your compliance needs
• Undertaking ESOS audits and providing audit reports; identifying cost effective energy efficiency opportunities
• Carrying out desktop assessments and audits (as applicable)
• Undertaking desk-based Transport Assessments (as applicable)
• Creating the summary report and evidence pack for the current compliance period
• Providing Lead Assessor compliance services including sign-off with summary report