Book a meeting
The deadline for ESOS Phase 3 compliance has been extended to 5th June 2024, however, the qualification thresholds and date remains unchanged. For businesses that meet the criteria, if you haven’t already started the process, now is a good time to act.
The Energy Savings Opportunity Scheme (ESOS) is a mandatory government scheme carried out every 4 years, it requires large businesses to report on their energy use and identify possible ways to improve energy efficiency and achieve Net Zero carbon targets.
Who qualifies for ESOS?
The qualification date for Phase 3 was 31st December 2022, if your business met any of the criteria on this date then you must complete an ESOS audit even if your business no longer meets the criteria. Failure to comply with the schemes requirements could result in significant financial penalties.
Your business will need to comply with ESOS requirements if on the qualification date your business was:
- A UK company that employs 250 or more people
- A UK company with an annual turnover in excess of £44m and an annual balance sheet in excess of £38m
- An overseas company with a UK registered establishment with 250 or more UK staff (paying income tax in the UK)
No longer qualify?
If your company previously qualified for Phase 2 but didn’t meet the criteria for Phase 3 on the qualification date, then it is recommended that you submit a DNQ (Do not qualify) notification to the Environment Agency.
What do you need to do:
If your business complies with ESOS it is important to start preparing for the audit as soon as possible, your data should be based on a consecutive 12-month period that includes the qualification date (31 December 2022) and ends no later than the compliance date for ESOS reporting (05 June 2024).
You will need to appoint a lead assessor to carry out and review your energy audit and ESOS assessment, appointing a lead assessor as soon as possible will be instrumental to ensuring compliance to the scheme within the timeframe and avoiding any penalties.
Key action points:
- Calculate and evaluate all energy consumption of your business
- Understand carbon usage
- Carry out a site surveys
- Review data and make recommendations for improvements including costs and benefits
- Appoint a Lead Assessor to review report
- Keep and maintain an ESOS evidence pack
Key changes for Phase 3:
- Businesses are now required to share ESOS reports with subsidiaries
- ESOS reports will need to include information on next steps to implementing recommendations
- Targets or action plans with be required following the Phase 3 compliance deadline which will be required to report against for Phase 4
- Collection of additional data for compliance monitoring and enforcement
- Non compliance penalty has increased to £50k and an additional £500 per day until compliance is achieved
- Standardisation of ESOS report template
- De minimis exemption has reduced to 5%
- The addition of an energy intensity metric in ESOS report
For more information on ESOS or help and advice please contact us on 03330 233 433
Stay up to date and subscribe