Energy Savings Opportunity Scheme (ESOS)
CIS has delivered ESOS reporting and compliance services since the scheme was first introduced in 2014. Our detailed reports and submission packs offer clear summaries to inform and drive energy cost and emission reduction strategies for key stakeholder partners.
Our team offer support every step of the way from initial planning of where site surveys are required, through aiding in the gathering of key information to the submission of a compliant report to the Environment Agency.
About the Energy Savings Opportunity Scheme (ESOS)
ESOS is a mandatory energy assessment scheme for organisations in the UK that meet the qualification criteria. The Environment Agency is the UK scheme administrator.
Organisations that qualify for ESOS must carry out ESOS assessments every 4 years. These assessments are audits of the energy used by their buildings, industrial processes and transport.
The ESOS audit is designed to identify tailored and cost-effective measures to allow participating businesses to save energy and achieve carbon and cost savings. The audit costs are estimated to be significantly outweighed by the savings from implementing the recommendations.
Find out if you qualify for ESOS
Ae are now in the forth compliance period (ESOS Phase 4) which commenced 6th December 2023. The definition for an eligible large undertaking is any UK company that either:
- Employs 250 or more people, or
- Has an annual turnover in excess of £44 million
- Has an annual balance sheet total in excess of £38 million
- Corporate groups qualify if at least one UK group member meets the ESOS definition of a large undertaking
- UK registered establishments of an overseas company will also need to take part in ESOS
Deadlines for ESOS compliance
Organisations that qualify for ESOS must notify the Environment Agency by a set deadline that they have complied with their ESOS obligations.
The deadline for submitting notification of compliance for phase 3 of ESOS was
- The deadline for submitting notification of compliance for phase 3 of ESOS was 5 June 2024.
- The deadline for submitting the action plan for the third compliance period is 5 March 2025.
- The deadlines for submitting the 12 monthly annual progress updates are 5 December 2025 and 5 December 2026.
ESOS action plan and annual progress updates
As part of the government’s development of the ESOS scheme, future phases will require ongoing reporting on measures highlighted for a company to reduce its energy costs and emissions.
The level of detail required continues to increase with tables identifying target measures being undertaken by organisations to be published. In addition, where action plan commitments have not been met, participants must provide a written explanation.
For Phase 3 onwards, ESOS will include additional compliance stages following the submission of the compliance notification: these will be a detailed ESOS Action Plan and annual progress updates to be submitted to the EA..
The action plan must be signed off by a board level director (or equivalent), and submitted via the compliance notification system by the action plan deadline for the third compliance period, which is 5th March 2025.
Annual progress updates
Following submission of the action plan, you must submit an annual progress update against your action plan commitments in the 2 subsequent years.
The deadline for submitting an annual progress update is 5th December each year. For the third compliance period, the deadlines are 5 December 2025 and 5 December 2026.
Streamlined Energy and Carbon Reporting (SECR)
Streamlined Energy and Carbon Reporting (SECR) is a UK regulatory framework that mandates qualifying organisations to publicly disclose their energy use and carbon emissions in their annual report. All Quoted companies, as well as large unquoted companies reaching at least two of the below thresholds must comply:
- At least £36 million turnover
- At least £18 million balance sheet
- At least 250 employees
For support in delivering your annual reporting obligations and to help develop a strategy to achieve your organisations ESG goals contact a member of the CIS team today
Contact us for more information regarding our ESOS consultancy services and support